Foreclosure in 62021>Question Details

Dotty Honnen, Home Buyer in Dorsey, IL

If a quick sale on an investment property does not pay off the mortgage can the bank make me pay the balance?

Asked by Dotty Honnen, Dorsey, IL Wed Aug 20, 2014

Retiring soon and cannot pay mortgage and renovate a house that was sold contract for deed and defaulted on. Have spent thousands of dollars already in court costs, mortgage, and renovation and refuse to go farther in debt on this property. My realtor says the stats show it is worth $10,000 more than the mortgage, but I know it needs rewiring, has a leaky basement, is in code violation, and needs all new flooring and a new bathtub. Unless it is a cash buyer, it won't be approved for a loan.
I am also worried that if I don't pay off the mortgage after a quick sale, the Bank will take the balance out of the profit from the sale of our home, which is going on the market soon.

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Call Erik Miles for counsel at 312-854-8092 he's a great lawyer
0 votes Thank Flag Link Thu Aug 21, 2014
You have a very complex situation that cries out for proper legal representation and advice.
0 votes Thank Flag Link Wed Aug 20, 2014
First is you can not sell a property without paying off the mortgage. If the sale price is lower than the mortgage, then you either bring in cash or have to look for a short sale. If you end up owing money on a short sale, and your investments is in the same name as your home, yes it is possible, but only a lawyer can tell you for sure given your situation. It is why investment properties should be in a trust or LLC
0 votes Thank Flag Link Wed Aug 20, 2014
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