Legal Question in Real Estate Law in Illinois

I have a multi family property (commercial 5+ units) that I am losing in foreclosure. I have yet to get my lis pendens, but I can imagine it coming soon. A couple of months ago, a shooting occured in front of my building. Since then, half my tenants moved out leaving me scrambling and falling behind.

I have the home listed for sale on a short sale but doubtful it will sell. I was reading that lenders are unable to seek a deficiency in an uncontested foreclosure. Is this true? If so, does this also apply to commercial property? I tried deeding it back to the bank but they refused. Would hiring an attorney guarantee they will not seek a deficiency. I'd give the property back to the lender today if they would let me walk away. What would my next step be?


Asked on 10/28/09, 5:30 pm

1 Answer from Attorneys
John Lee John D. Lee and Associates, LLC

No, hiring an attorney will not guarantee they will not seek a deficiency, and a lender has a right to do so. If they do not, you still may have to declare income in the amount of the deficiency on your 2009 tax return, or 2010 tax return if the foreclosure judgment is entered next year. I would suggest that you consider hiring an experienced real estate/mortgage foreclosure attorney to negotiate with the lender and to represent you/your corporation in court.

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Answered on 11/02/09, 7:18 pm


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