Category Archives: Strategic Default

Top 3 reasons to try a short sale in Illinois

Lately, I’ve been on fire getting short sales closed. They’re getting approved right and left and I feel like LeBron in the fourth quarter of the NBA finals with James Harden trying to guard me. Usually about 60% of short sales actually close and the rest go down the chute to foreclosure. Lately, it’s been…

How I was banned from an underwater home forum

All you have to do is look at my facebook page to see how much I participate in online forums. I’m  mainly a lurker and don’t contribute much. It’s probably a character defect, or an overreaction to giving the wrong answer to Sister Margaritas  in fourth grade religion class. Man, that ruler hurt. I’m barely…

Update on Mortgage Debt Forgiveness Act-no extension yet

There is still no extension of the Mortgage Debt Forgiveness Act (MDFA) that expires December 31, 2012. Now there are two bills pending to extend it. The MDFA says that if a homeowner’s primary residence is foreclosed or short sold, then the 1099 issued afterward is not taxable.  Normally, a homeowner would owe tax on…

“Vacancy posting” stickers on foreclosures mislead owners

Last week, a client in foreclosure arrived home from a long day at work and found this notice slapped on her front door: Vacant Posting Notice This property has been determined to be vacant. This information will be reported to the mortgage servicer responsible for maintaining the property. The mortgage servicer intends to protect the…

Buy and Bail in Illinois: Q & A

What is Buy and Bail?  Buy and Bail is a version of strategic default. The owner of a severely underwater house or condo buys a new house.  After they close on the new house, they either try to short sell the old home or stop making payments on it and strategically default on the old…

Katie bar the door: Deficiency judgment okay with abode service

I recently ran across a new Cook County case and, while the case is interesting, I hesitate to even bring it up because everyone will think that it’s open season now for deficiency judgments in Illinois. Trust me, it’s not. Deficiency judgments are still nonexistent to rare in Illinois. The case is Metrobank v. Cannatello,…

Mortgage Debt Forgiveness may be extended through 2014

(Note: The MDFA expired at the end of 2013. This is an old post that and it was not extended through 2014-sorry folks. TS)   It looks like there is a proposal in the 2013 budget package to extend the Mortgage Debt Forgiveness Act (MDFA) through 2014. The MDFA is an important law that allows…

What are an owner’s last steps in a condo foreclosure?

Condo foreclosures are tricky little devils to handle. There is a high potential for lawsuits, in addition to the main lawsuit, which is the foreclosure. That’s because condo associations want the dues to be paid during the foreclosure and will file a lawsuit if the owner doesn’t pay.  Also, if contents insurance is cancelled during…

New Illinois short sale law chopped to pieces

This video from one of my favorite movies (Monty Python and The Holy Grail) is symbolic of what happened to the new Illinois short sale law as it wound its way through the legislature. You’ve seen it.  King Arthur and the Black Knight get into a sword fight. King Arthur carves up the Black Knight…

Monitoring strategic default cases in Illinois

Last year, I did a lot of phone consultations with clients about their underwater homes and condos.  About 80% of those I talk with have already decided to strategically default. They could continue to pay the mortgage, but choose not to,  because the property is $80k to $100k underwater.  Usually, they are   completely  freaked out…