Legal Question in Real Estate Law in Illinois

Re: deed in lieu of foreclosure

They do not have to accept a deed in lieu of foreclosure. The answer to the second part of your inquiry depends on whether your home equity loan is with the same bank.

Re: deed in lieu of foreclosure

The bank does not have to accept a deed in lieu, and if you have a second mortgage such as a home equity loan, and the equity loan is with a different lender, the holder of the first mortgage is unlikely to accept such a deed. It may be possible to work out a short sale or loan modification with the first lender and settle the equity loan for a small percentage of its value. For further information regarding Illinois mortgage law, please see:

http://home-mortgages.suite101.com/article.cfm/illinois_mortgage_foreclosure_law

and

http://home-mortgages.suite101.com/article.cfm/mortgage_loan_modification

Our firm is establishing a loan modification division, and you may feel free to contact us with your questions.

Good luck.