Legal Question in Real Estate Law in Illinois
Real Estate
A bank in Chicago is refusing to accept back payment due on a mortgage. Back payments due are $23,000 including fees. Mortgage due is $93,000. on a $200,000. home. Bank wants loan paid in full not just the back payments. House is scheduled for Sherriff's sale Feb 25. Homeowner has the $23,000. to pay. Is this legal for bank to refuse to re-instate loan? The bank's reason is that the homeowner has missed payments various times in the past 6 years and they are tired of dealing with homeowner.
1 Answer from Attorneys
Re: Real Estate
This is perfectly legal. They do not have to accept the late payments etc, in full and reinstate the loan. Otherwise there would be no sense in having a default clause in the mortgage.
However, do some research and see if the bank has the same policy and practice when there isn't so much equity. Perhaps there may be some argument that an expert in foreclosure law may be able to make if their policy is different when the equity barely exceeds the amount owed.
Also, look into getting some investors.
Perhaps you could buy out the existing mortgage with private investors, promising a good return in a short time span and then turn around and get a mortgage from a different source to pay off the investors and save your house. good luck.
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