Legal Question in Real Estate Law in Illinois

I have a mortgage loan on my business property, the loan came up in october 2009, at this time i have been unable to refinance due to my credit. The bank wants me to pay 35,000 toward the principal while they are deciding if they want to work with me, they know i cannot get refinanced at this time. I am concerned that the bank will take my 35,000 and tell me they will not work with me and start foreclosure proceedings. what can i do?


Asked on 11/19/09, 12:11 pm

1 Answer from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

Thank you for your questions. You have two options as I see it: (a) pursue a loan modfication/workout with the bank; or (b) file for a chapter 13 bankruptcy. A loan modification is a negotiation with your bank to restructure the terms of your mortgage. A typical term that I seek when I am negotiating a loan mod is to have any past due payments added to the principal amount of the loan. Based on your questions, it would seem that you may have already pursued this option. Alternately, you can file a Chapter 13 bankruptcy. A chapter 13 bankruptcy would immediately bring you current on the loan and allow you to pay the arrearage over a period of 3 or 5 years. Moreover, you may be able to eliminate any seconds that are on the property. Please let me know if you have any further questions. You can email me directly at: [email protected]

Thanks

Adam Tracy

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Answered on 11/24/09, 12:27 pm


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