Legal Question in Real Estate Law in Illinois

Re: deed in lieu

I just answered another question regarding a property in Princeton, and if this is from the same sender, it will be a repeat, but I believe the answer below addresses some of the issues.

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.

Re: deed in lieu

The bank, any bank, does not have to accept a deed in lieu, or a "short sale" scheme. You may have a bankruptcy remedy, but since you indicate that you have the $ to pay the 1st & 2d, it is likely that this may not work for you. You need to consult with a lawyer in your county. Sooner than later. Good luck!

Re: deed in lieu

You should contact a local

attorney asap.

Re: deed in lieu

Talk to a local attorney regarding all of what the other attorneys suggested (modification, etc.) However, maybe there's another route: sue (or threaten to sue) the mine company for a "nuisance" that diminished the value of your property.