In Illinois a deficiency for a mortgage is allowed pursuant to state law. A deficiency is a shortfall after a foreclosure sale. In practical terms however, if you only have a first mortgage generally they will not enter a deficiency against the parties liable on a mortgage for residential property. Or in most cases in Cook County the judges in the foreclosure courts are not allowing for a deficiency judgment against the borrower for a first mortgage on residential real estate. However, I am now hearing from other attorneys that that may be changing due to the numerous foreclosures that are plaguing the courts right now.

Nevertheless, a Chapter 7 or a Chapter 13 bankruptcy will usually alleviate you from any personal liability on both a first mortgage and a second mortgage because a bankruptcy protects you under federal law. If you are experiencing financial difficulties and are in foreclosure please call my office at 312-489-8182 today to schedule a free consultation. I am an experienced Chicago bankruptcy attorney who is happy to help you.

Marc