A) Simple answer,Illinois law. Why would your lender attempt to apply law from a different state? They have to work within the laws of the state where they are taking action...B) Have you considered contacting your lender & asking the loss mitigation dept to do a "deed in lieu of foreclosure" ? The lender saves money, it's faster. When you get to whatever "almost final point" you find yourself in, take the documents to an attorney. In all cases, you MUST be served for a court action, or get documentation. It's initiated by the lender, so once you do get the paperwork, go ask the attorney who can steer you in the direction where you'll be best protected. C) As for the rest of the info I've read here, I'm still shaking my head. You're about to ruin your credit & maybe be on the hook for a bunch of money. Why aren't you calling an attorney instead of asking for advice from strangers. Would you go out on the street & start asking people? This format is no different. Protect yourself. Use your head.

First of all, thanks for the answers so far. For more clarification, my mortgage in LV is with CITI. It is a personal mortgage as is the deed, no LLC or any other entity holds it. I was in the middle of the process to restructure the mortgage when the White House administrion put a moratorium on restructrings yesterday. That leaves me in limbo, and being behind on the payments forclosure has become a real option. I have a condo in Chicago with equity as well as a stock portfolio which is sizable albiet considerably smaller than it was just 5 months ago. Thanks again for the answer replys, they are all very helpful, sans NonRealtor's.

Sell the Illinois house and move to Vegas. No more snow. Good Luck

I would like to add to Wayne's comments in that, yes, it is probable that the lender will recover losses at some point and in some way - maybe 75/25 probability on average. It really depends... It really depends on the institution initiating the foreclosure (or authorizing the short sale). Does the margin for their recovery justify the expense in proceeding? How much inventory do they have now (ie, are they overloaded)? How did you hold and record title at closing? Is it in your name, an LLC or corporation's name or trust agreement? If title was held in your personal name as well as any additional assets you may have, you are essentially fully exposed. If you held title in LLC/trust etc. (as well as other assets you may retain), it may be far less likely the lender would attempt recovery as the cost do do so exponentially increases when having to litigate around good sheltering of this kind.

As far as which law is followed, I could not speak to that. A really good attorney specializing in foreclosures and short sales would be ideal for you to retain.

This is a very good question, and one that a lot of people are dredging though the back of their minds these days.

In this particular case, once forclosure and sale has happened, the lender will likely go for a deficiency judgement. Once they obtain the judgement, they will likely issue a citation to discover assetts in order to collect. There are exemptions you can take, but it's best consult with an attorney who can best advise you.

They will likely pursue all avenues to collect money, so don't assume it will just go away.

If you can participate with a short sale, and get a waiver of deficiency judgment, go for it. You should gather some info from a local agent to determine what the home is worth. Then get in touch with your lender's loss mitigation department to see if a short sale is a possibility. Make sure you have an attorney helping you all the way.

Best of Luck

This depends on the bank and if they want to go after a defeciency or not. Typically, in Las Vegas they do not foreclosue with defeciency rights but, they could and they go after other assets with a judgement. The good news is that with changes made in 2007 for a temporary change to IRS rules you will not have to worry about incurring IRS tax liablity with the debt forgiveness ( the difference between value and amount owed). The IRS form was called a 1099 C for debt forgiveness.

I would agree the best thing is to talk to the attorney and the bank to see what you can work out. There is another option called a deed in lieu (DIL) which typically will not allow the banks to go after defecinency. So if they accept a DIL most likely they will not go after your property. Again check with a attorney for legal advice.

In all complicated matters, involving real estate especially, consult an atty where your home is located.

Consult your attorney and tax advisor for the best answer to you questions.

If you have any questions regarding your Illinois home, you can give me a call or contact me via email.