Chase, foreclosure and deficiency judgment

[kkz123]

I am thinking about walking away from my house. I live in Illionis. I have my first loan with Chase, second LOC with another bank.
What are the chances they will come after me after foreclosre with deficiency judgment and collections, etc... I have two incomes so I would think that makes me a prime target. Does anyone have experience?
I am still trying to do a mod with them, but my income is too high although my expenses are higher. I am about to become 90 days late.

[dtap57]

Has Chase offer you any help at all? Have they offer to put the amount you are behind to the end of the loan? It is too hard to say if they will come after you or not but i would try to go as long as you can before walking IMO.

[kkz123]

Chase has not offered anything at all other then the intent to collect. I do have a modification application pending but nothing material has happened. They need telling me to fax in documents after documents, then one minute tell me it is at the underwriters, other minute tell me they need more documents........

Walking away makes the most financial sense but I am worried about other consequences such as deficiency judgment, job aspect, etc...

[helpinNE]

Here is a link to IL foreclosure Illinois Foreclosure Law

The interesting thing in IL is there is NO non-judicial foreclosure process. The bank has to file suite in court which draws out the process and is costly to the bank. This information shows a timeline of 210 days for this process to be complete. That is at least 7 months for you to save up money.

The information on this site aslo mentions a deed in lieu of forclosure which if accepted by the bank, the bank cannot then sue for a deficiency judgement. I have not seen one successful deed in lieu of mentioned on this forum but you may have better luck since IL only allows for judicial foreclosure so doing a DIL would be less costly to the lender.

How underwater are you on the house?
I would suggest talking to a bankruptcy attorney who specializes in real estate and debt collection. This person will probably be able to give you more specific information about the laws of your state and if you have assets, how you might be able to protect them from any type of judgement.

No none can advise you to walk away. However, if you choose to walk away, know the laws of your state. Save as much money as you can in prepration for settling with the mortgage companies down the road. You may even consider talking to a realtor about doing a short sale. These can be hard to do but it can help to limit your liability to the banks down the road.

Good luck.