What's my responsiblilty after my home REO by bank under Illinois Law?

Asked by lsuzanne168, Nevada City, CA Wed Sep 19, 2012

Can the bank after me for defficiency if the bank REO my house? I did have PMI at that time and how that play in my situation knowingly my house did not sell at the auction and no value stated how much the bank own it for. Now if I do decide to buy a cheap house, would the bank come after me for repayment due to I have assest showing? What are my responsiblity and things I should know? I can use all your expertise! Thank you inadvance!

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Barbara Grandolfo’s answer
Barbara Gran…, Agent, Anaheim, CA
Wed Sep 19, 2012
Hi lsuzanne,

With the foreclosure on your credit now, it is highly unlikely anyone will give you a loan to buy another house for at least a few years so that should be the least of your worries.

Good luck,

Barbara Grandolfo
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Sep 19, 2012

In one place, you say "Illinois Law" and in another "Foreclosure in 92648"

You'd better get your act straight.
0 votes
The question did specified for Illinois, not 92648!
Flag Wed Sep 19, 2012
Ron Thomas, Agent, Fresno, CA
Wed Sep 19, 2012
You are right, right now your house has no value:
The Value will be determined when the Bank re-sells the house.
The DIFFERENCE between that Sales Price, and your LOAN AMOUNT will determine the DEFICIENCY.
Also, your clock will not start until the Escrow Closes this next sale.
I have that on good authority that the Banks will use the re-sale date for your 3 years of penance.

Now, the good news;
California is a Non-Recourse State:
There are some restrictions, but you be Okay with regards to a Deficiency Judgement. Those exceptions could get you; so I suggest you read up on California Deficiency Judgements.

At least the IRS is considerate about the whole thing: Look at the Debt Forgiveness Act of 2009.

Good luck and may God bless
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