Legal Question in Real Estate Law in Illinois
Using property for collateral that is under foreclosure sale
We have a land that was initiallly used as collateral for a loan. However, it will be under foreclosure sale, and we have about 3 weeks left with an option to buy it back within that period.
My question is: if the land has enough equity left, can we use it as collateral to get an additional loan to pay back the initial loan that led us to foreclosure process? Also, will banks take a property as collateral, when the property is under foreclosure process? Lastly, if all this is possible, how long will it take for the bank to process the loan? (I know that it takes time for banks for appraisals, etc.)
Thank you.
1 Answer from Attorneys
Re: Using property for collateral that is under foreclosure sale
It is possible. The lender will know about your foreclosure. Keep in mind that your foreclosure is going to adversely affect your ability to get a loan.
I would have no idea how long a lender would take--I have seen everything from a few hours to a few months. Depends on the lender, the type of loan, the borrower, etc.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
