Property foreclosure Illinois can the seller sue me? (Mark: mortgage, credit)

[cc17118]

I may have to foreclose on a piece of property. The property is worth more now than when I purchased it, due to many improvements. The loan on the proerty is owner carried. If we quick claim the property back to the owner, can he still sue for the loan balance?

[chet everett]

When you are a borrow it is not YOU that forecloses, you default, the lender forecloses.

The seller, in your case, as the lender, would foreclose after appropriate notification.

If you were disavow any intrest in the property through Quit Claim Deed Quitclaim deed - Wikipedia, the free encyclopedia the lender would not in theory need to pursue the same sort of actions against in foreclosure, though they MIGHT want to enforce the terms of the mortgage depending upon what sorts of default/damages clause is in the actual mortgage documents...

If what you are saying is true, that the property is NOW worth more than what you bought it for you may want to try to sell it. If it sells for more than you owe you could avoid having this ugliness on your credit history, the original seller/lender would be out of your life, you could move on to buy something that you can afford...

Good Luck!

[supergirl1613]

You should call Mark Hearsh with the Castle Law Group. They're all Illinois firm that specializes in dealing with things like loan modification and foreclosure. They were really helpful and I think the consultation is free. www.castlelawgroup.com...you should check it out

[linicx]

Have the property appraised. If the property is worth more than the balance, there should be no problem - especially if you are on good terms with the lender. If there is a difference betwee the two - if the property appraises lower, for instance - you will be liable for the difference unless the owners *forgive* the balance.

Appraise it, talk to the owners. They may be willing if you made all your payments on time, and if you have good reason to quit the loan. Depending upon the circumstances and the people involved, sometimes owner-lenders will work with buyers to keep them in their homes during tough times.