Legal Question in Real Estate Law in Illinois

Short Sale 80/20

I have a home that I am losing to foreclosure. There is an 80/20 both from different lenders. If I lose the home to foreclosure, I was told that most likely the 1st mortgage will leave me alone but the 2nd will come after me for the deficiency.

How about in a short sale? Will the lender with the 20 come after me for the deficiency?


Asked on 7/13/09, 3:55 pm

2 Answers from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Short Sale 80/20

You might attempt to save your home by filing a Ch. 13 bankruptcy. Alternatively, a Ch. 7 bankruptcy might be a viable option for you, and you won't have to worry about a deficiency.

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Answered on 7/13/09, 4:03 pm

Re: Short Sale 80/20

This is guess work on this forum. Every lender and every circumstance is different. Why dont you contact the second mortgage holder and ask?

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Answered on 7/13/09, 4:17 pm


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