Legal Question in Real Estate Law in Illinois
foreclosure and unpaid tax
I am unemployed for 5 month with no nearest prospects for the job. I missed 2 mortgage payments on 2-flat rental property. It goes to foreclosure. Tax bill is above 5K and I am not able to pay it as well. What is consequences of unpaided taxex. How it is going to effect me personally in addition to foreclosure. The property worths about half of the mortgage on it and tax bill went up from 2.5K in 2006 to above 5K in 2008. It seems that it is impossible to sell as well. It is listed for sale but propspects to sale are close to zero.
2 Answers from Attorneys
Re: foreclosure and unpaid tax
FOreclosure will occur, the bank may or may not forgive the difference between the sale price and what you owe and the taxes run with the land so they will be paid.
Re: foreclosure and unpaid tax
You have a variety of potential options, including possibly a loan modification because of original mistakes that might have been made in loan documents when you purchased the property. You mention it is a two flat and rental property. There may be additional options if you live in one of the units. Take a look at the following web link for additional information:
http://home-mortgages.suite101.com/article.cfm/illinois_mortgage_foreclosure_law