Legal Question in Real Estate Law in Illinois

My husband and his brother purchased a home together in 2007, since then the market has crashed and we are unable to sell the home. In August of 2010 we found out his brother wasn't paying his half of the mortgage for at least 3 months. My husband then stopped paying the morgage as well because it seemed as though the bank wasn't applying the partial payments. When his brother got back on track in October we sent a payment that was then returned because the bank (Chase) had sold our loan to LBPS. We contacted a middle man and began the process of a loan modifcation. The first modified payment was mad in January 2011 and we just finished our last June 1st 2011. Recently we received papers stating we will be in forclosier June 16th if the balance of $13900 isn't paid. Our middle man said not to worry, but we are a bit worried. Is it likely we will go into forclosier? Is a short sale a better way to get out of this mess?


Asked on 6/05/11, 1:39 pm

1 Answer from Attorneys
Kenneth Goetz

I can only advise to proceed with caution at every step. A short sale must be approved by Chase and then you may be stuck with a "deficiency", the difference between the payoff and loan balance on the day of closing. It is a good idea to line up a foreclosure attorney. You will want to be represented in both the short sale and foreclosure, which can be pursued by the bank simultaneously. Yes, it's a can of worms!

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Answered on 6/06/11, 5:22 am


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