Legal Question in Real Estate Law in Illinois
We live in Illinois, my wife entered her name on a mortgage title to get a condo for her brother several years ago. Hers is the only name. Now he can't make the payments and the condo is under water. If she allows the condo to go into foreclosure, could the mortgage holder come after me or our posessions
1 Answer from Attorneys
Based on your saying the condo is "under water" after a foreclosure sale there will be a deficiency (amount owed on the mortgage +++ less net proceeds of foreclosure sale) the lender probably will get a "deficiency judgment" in that amount, and then any assets that you and your wife own together (other than a primary residence held in tenants by the entirety) could be at risk. The news yesterday is that "foreclosures are up 43%" in Illinois, meaning lenders are moving more loans in default into foreclosure posture. Foreclosure sales are depressing values all over....so by the time your situation makes its way through foreclosure, a deficiency could be larger. Time to talk to an attorney and possibly a real estate broker about options, including such things as short sale and "deed in lieu" if your lender will listen, but I caution about trying these things as a DIY exercise.