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The Foreclosure Nightmare: Will You Wake Up to Bankruptcy?

Posted on in Bankruptcy

Facing the loss of your family home to foreclosure was not part of your American dream. Every nook and cranny holds a cherished memory, but due to economic hardship you are unable to continue making your mortgage payments. You are quickly approaching the end of your 90 day grace period. There is no other recourse, the bank is planning to call in the loan. You are now facing foreclosure and can not wait for the nightmare to end, but for many unsuspecting homeowners it may continue to haunt them for another 20 years.

Perhaps impossible to comprehend, but true. A recent Wall Street Journal article chronicled the plight of Joseph Reilly, who recently lost his Florida vacation home as a result of the financial hardship due to long-term unemployment. Unable to pay his mortgage payments, the bank took ownership and sold the home. Mr. Reilly believed that would bring an end to his foreclosure nightmare, until the day the bank filed a deficiency judgement against him to the tune of $192,567.71. Mr. Reilly was now responsible for the deficit of the loan following the application of proceeds from the sale of the house.

Rarely do homeowners expect this following a foreclosure but it is becoming an increasingly reality for many. Banks are now opting to spend the necessary resources to decrease their risk factor by legally holding the original borrower accountable for the remaining balance of the original promissory note following a short sale.

In 41 states and the District of Columbia, the filing of deficiency judgements are on the rise, including Illinois

Although Mr. Reilly is now contemplating bankruptcy in Florida his scenario can easily transfer to any Illinois homeowner facing the same circumstances. Whether it be Florida or Illinois, confronting foreclosure and the possibility of filing for bankruptcy to alleviate your financial problems can certainly keep you up at night.

The experienced team of Newland & Newland, LLC can help put your financial problems to rest. We will discuss your legal recourse with regard to Illinois Laws 735 ILCS 5/12-1602 and 735 ILCS 5/12 – 108(a) and how you may be able to halt the foreclosure and avoid filing for bankruptcy. Serving Cook, Lake, DuPage, McHenry, Kane and Will Counties you can trust our 50 years of combined legal experience to offer you a personalized approach to achieve your dreams of a brighter financial future. Contact us to schedule your free phone consultation today.

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