Legal Question in Real Estate Law in Illinois
My parents want to leave their current neighborhood because they have been burglarized THREE times. They still owe $70,000 on their home. Unfortunately, the house would only sell for about $40,000. If they choose to foreclose, can the bank sue them for my mother's pension or SS benefits? A short-sale would take too much time.
3 Answers from Attorneys
Yes, the bank can sue your parents for all of their assets should the bank foreclosure and there be a deficiency. You may wish to consider a deed-in-lieu of foreclosure. That is a transaction in which homeowners return their home to the bank in exchange for a cancellation of the debt. Please let me know if you have any additional questions; [email protected]
You do not have to live there to short sale.
Please understand there are income tax consequences to foreclosures and short sales that could cause your folks additional grief. It may be worth their consulting with an attorney who concentrates in part on bankruptcy work depending on their other assets, which sound modest. Good luck.
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