Legal Question in Real Estate Law in Illinois

Almost certainly you will. When you entered into the mortgage you signed a Note which made you personally liable for the full amount of the mortgage. The deficiency of $20,000 you will still be liable for. However, the bank may have passed up it's opportunity to pursue you for it. When the bank had the foreclosure sale confirmed, the order may contain language that states the bank is awarded an "in personam" deficiency judgment in the amount of $20,000. If so, then the bank may pursue you for this amount. If the deficiency judgment is merely "in rem" then the bank will not be able to pursue you for the $20,000.

Additionally, if you have previously declared Chapter 7 bankruptcy and you did not "reaffirm" the mortgage, then the bank cannot pursue you for the deficiency.

I agree with Attorney Goldberg's response. If you review the case, find that you are on the hook and that this is not addressed by a prior bankruptcy, then reviewing bankruptcy options may be necessary. There may be options even if you filed in the last few years, but everything depends on a review of your circumstances.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for July 2013 through the present, including wages and unemployment during that period; (2) all your bills (copies neatly assembled, back pages included); (3) last two years� tax returns; (4) a credit report (use www.annualcreditreport.com to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course. You are not required to use an attorney in your area.

I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.

Technically 99.999% yes based on what your loan documents and the foreclosure lawsuit most probably say. But if the bank doesn't ask for a deficiency judgment or even if it does still doesn't try to enforce it, that's different. If the decide to write off the deficiency, you should be sent a 1099. But only a complete review of the applicable paperwork will reveal what the situation actually is.