Legal Question in Real Estate Law in Illinois

Get an attorney involved because the best you may be able to do unless you want to run the risk of a lawsuit on the promissory note is to compromise the debt. Of course there may be other defenses but without a complete review of the documentation it is impossible to be certain.

The fact that you no longer own the house does not change your obligation to pay the debt. Likewise, you may also have the same situation with the first mortgage company. Bankruptcy may be an option, or working out some sort of arrangement with one or both mortgage companies. You should discuss your situation with an attorney.