A deficiency balance in a Will County or Illinois foreclosure is a remaining balance that is left over when the property is sold and the amount received for the property during the sale is not enough to pay off the mortgage loan. For example, if the total mortgage loan debt is $100,000 and the house being foreclosed on is sold for $50,000, the deficiency balance would be the remaining $50,000.
In Illinois, the loan lender files a complaint against the borrower in court to receive the balance. In Illinois, there are two types of judgments that a lender can obtain in order to receive the deficiency balance. One type of judgment that a lender can obtain from a borrower is an in personam deficiency judgment. An in personam judgment allows the lender to collect the deficiency balance from the borrower directly. This can be done by garnishing the borrowers wages, taking money from a bank account forcibly (also knows as levying), and taking assets, just to name a few. The lender must serve the complaint to the borrower or the borrower must file an appearance in the case in order for the lender to obtain an in personam deficiency judgment.
The second type of judgment that a lender can obtain from a borrower is an in rem deficiency judgment. This type of judgment is against the property and not the person. This only occurs if the borrower reclaims the property in question by paying the entire amount owed on the property. If the borrower is able to reclaim the property, the lender, through the in rem judgment can place a lien on the property for the deficiency balance owed.
In sum, if you have a current balance owed on a mortgage loan after a foreclosure, you are still liable for that amount and the lender has the right to collect what is owed to them, through some of the outlets mentioned above.
Dealing with a foreclosure in Will County or any where in Illinois can be emotional and a bit confusing to deal with on your own. If you are currently going through a foreclosure in Illinois and have questions or concerns with the process, it is essential that you contact an attorney that can better assist you with any dilemmas that may occur. To discuss your situation with an experienced attorney, please contact us at 815.729.9220.