My husband and I bought our house in 2007. Refinanced in 2009, Now our house is not worth what I paid and we have a high mortgage payment. I inherited the rental property and bought out my other 3 siblings last year.
I have a mortgage on my house that I can no longer pay for. I also own a rental property. Can the bank take away my rental property to settle the debt for the house I can no longer pay for? I was hoping I would be able to live in the rental property since that mortgage is much cheaper than my original house. I live in Illinois and have no idea what the laws are here. Thanks for any information you can give me.
This is one of those questions that only a bankruptcy attorney in your state can properly advise you after a full consultation.
Right now, if there is equity in the rental property that is worth taking, then the creditor can get a judgment and possibly execute against the rental property.
I don’t know what the homestead rules are in your state. But it may be possible to change your homestead to the rental property (with true intent to reside their permanently) and possibly protect the “new” homestead.
Please seek out an experienced bankruptcy attorney for advice on Illinois law.
My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
If you have a bankruptcy question you’d like to ask just use the online form.I'm Thinking of Filing Bankruptcy in Illinois. Can We Keep Our Rental Property? - Fla by Lewis Roberts