June 24, 2008

Deficiency Judgments Are Real

Filed under: Foreclosure,Judgment

I received a notice of deficiency judgement after the foreclosure of my home in IL. Am I liable to pay this back?

Also I heard about an REM sale or way to buy the property back from a bidder.  The bank still owns the home – in your experience is there anyone out there who would either

a). Give us a loan to purchase the property (I had been out of work but now have the means) or

b). allow us to rent the property from them. 

I have been searching the internet but have not come up with anyone with the answers. Hopefully you can either refer me somewhere or have come across these questions before

Lisa

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Hi Lisa,

A deficiency judgment is permitted with Illinois foreclosure, so the answer to your question is yes. 

A homeowner has a right of redemption in Illinois.  735 ILCS 5/15-1603(b)(1) provides:

In the foreclosure of a mortgage of real estate which is residential real estate at the time the foreclosure is commenced, the redemption period shall end on the later of (i) the date 7 months from the date the mortgagor or, if more than one, all the mortgagors (A) have been served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.

Read: Redemptive Rights

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

(source=ilga.gov/LEGISLATION)

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