You need a bankruptcy lawyer in Illinois or a foreclosure lawyer, we have been doing it for over 25 years.
- Are you having trouble paying your bills? Is your mortgage behind? You are not alone. Right now, a large percentage of America is filing bankruptcy because of the economy. Bankruptcy is ripe with special laws, and having an attorney that has been doing bankruptcy for over 25 years is essential to ensuring you have the proper legal representation. If you need advice on your financial situation, give us a call to set up a free consultation to determine what your legal direction should be. Call us now to set up a free consultation at (331) 222-9LAW (9529).
Do you have to pay taxes if you foreclose and the mortgage is more than the value of your home? MAYBE.
In Illinois if you are a homeowner and want to walk away from the property and sever all corresponding rights and liabilities (except liens of the U.S. which cannot be foreclosed without judicial sale) you may do so if the lender agrees to a consent foreclosure. Pursuant to the Illinois Mortgage Foreclosure Law (735 ILCS 5/15-1402), a consent foreclosure vests absolute title in the lender, free and clear of all claims, liens and interests of the borrower, including his rights of reinstatement and redemption. In return, the lender agrees to waive its rights to a personal deficiency judgment against you or any other person. This is critical to saving you money. Also, the Federal Government has changed the tax code to allow any deficiency (value of the mortgage less the value of the home) as non taxable. This is only for your primary residence. However, this law can change. If this is an issue with you, contact us for more precise information, or your tax accountant. You need to contact an attorney that can handle this as soon as you think you have a problem so that the right solution can be created for you.
Have a question or need help, it’s free to ask: