Legal Question in Real Estate Law in Illinois

Re: Foreclosure and Spouse Responsibility

I believe you are misteken as to the title and mortgage having different parties on them. Most likely, only your husband's name is on the Note, but both names are on the Mortgage and Deed/title (or only one). As far as I know, you wouldn't have gotten a loan with different parties on the title and Mortgage; they'd have to match. The Note and Mortgage (and therefore title) can differ.

Consequently, if that's true, both you and your husband's credit will suffer. Take Mr. Padove's advice and try to negotiate with the lender. You might be able to renegotiate the terms (interest rate, length of the loan or even principal). I read an article yesterday that says the Obama administration is pushing lenders to actually lower the principal (which, needless to say would also lower your payment).

You may also try a short sale (selling and paying the lenders less than the full amount owed) or a deed-in-lieu (signing the title over to the lender). My experience is that the lenders aren't too keen on DIL's these days (especially if there's no equity) because they already own more property than they want to.

Finally, you may be able to battle the lenders because they may not've followed all the nitpicky legal procedures over the course of giving and servicing the loan. If you want to talk to an expert about this last option, contact me and I'll put you in touch with a specialist. He won't come cheap: the retainers for these types of attorneys probably will set you back $3,000 - $5,000.

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Re: Foreclosure and Spouse Responsibility

I would recommend that you talk to a bankruptcy attorney as well. Foreclosures do take awhile to process in certain jurisdictions and you may be able to stay in your home for an extended period of time before having to relenquish the home.

Re: Foreclosure and Spouse Responsibility

If only youe husband is on the loan papers and mortgage, only his credit will be at issue. You should consider talking with the lenders to see if anything can be renegotiated or whether forbearance is a possibility.