Legal Question in Real Estate Law in Illinois

real estate

My home has been for sale for 1year, it is now worth less than I owe on it, what happens if I just walk away and let the bank have it?

Can they come after me for more money or is the house all I loose, I know it will affect my credit, but at this point I don't care, my morgage is $2000.00 a month and I live with my girl friend now, so I am just throwing $2000.00 a month away on a house that is going down in value. what should I do?

Thanks

Mike


Asked on 7/16/07, 10:48 am

1 Answer from Attorneys
Walter Palmer Law Office of Walter Palmer

Re: real estate

You still owe the full amount of the loan. If you "let the bank have it" you very probably will be responible for the difference of between what you owe and what the property sells for at the judicial sale. If you contact the bank and ask if they would consider a 'short sale', they would take the house and not ask you to make up the difference. There is no right to a short sale, but the bank may agree to it to close their books on the property. It's a rough real estate market and they may well agree.

If by some freak chance, the house brings more than is owed, you would be entitled to a surplusage. It takes a formal motion to the court to get it, but cross that bridge when you come to it.

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Answered on 7/16/07, 11:49 am


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