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If i stop paying on my house and walk away from it, besides losing my home, are there any other repercussions i can face?

Arlington Heights, IL |

I am unable to make the mortgage payments on my house. Besides facing foreclosure, do I stand to lose other assets? Can debtors come after me for any other property that I own ?

Attorney Answers 7


  1. Yes, the bank can most certainly attempt to collect any deficiency after the sheriff's sale. You could always try to work out a deal where you give the bank a deed in lieu of foreclosure.

    The bank may not agree, however, try to work out a deal, but if you have an attorney representing you to slow down the foreclosure, then the bank may be more receptive to such an offer. I would be happy to discuss free of charge.

    J. Younes
    (312)802-1122


  2. I agree with Atty. Younes, and would add that a short sale may be another option for you. This is also best discussed with an attorney.

    This answer is intended as informational only, and does not constitute legal advice or form an attorney-client relationship between us.


  3. It depends on how much equity is in the home.

    If the home has no equity and the bank sells it at a loss, they can come after you for the "deficiency" - which is the amount you owed (plus their costs in carrying the home, selling it and their attorney fees) less what they get for the home upon its sale.

    There is also the issue of your credit being damaged.

    If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.


  4. As my colleagues above stated, the bank can potentially come after yu for any deficiency that arises after it receives a judgment against you and after it has the judicial sale of the house. There are ways that you can be protected from such a deficiency judgment being entered against you, those being a short sale or deed in lieu of foreclosure. Keep in mind that your credit will be harmed in each scenario, but it would be harmed the most if the bank receives a judgment for foreclosure an sale.


  5. If the property is foreclosed, it can eventually be sold to satisfy (at least partially) the money damages component of the judgment. I have been successful at keeping clients in their homes for a year after alleged service of process. I have also successfully obtained an order to vacate a judgment even more than 30 days after it was entered. Further, I have successfully kept a client in his home for four months after a judicial sale, gotten him an in rem judgment, and a $1,500 payment to help with his moving costs. There are many possibilities here. Consult an attorney to find out which opportunities you may have, because it may actually cost you less to retain an attorney than going it alone.

    Any information provided is meant merely as a courtesy in providing general legal information, and should, under no circumstances, be construed as individual legal advice directed to the person asking the question(s) directed to me.


  6. As stated previously, there are a lot of options that can be explored that are better then walking away from the house. There are a lot of debt collectors that are purchasing deficiency judgement for a few cents on the dollar and they will wait for you to get your life back together. Several states are trying to pass limitations on those collection efforts, but I have not heard of any in Illinois.


  7. In addition to all the other responses, your credit will be affected, there may be income tax consequences, if you had work done to the home that was not paid for you could be sued by contractors, you may still owe certain utilities and quasi-utilities (cable tv etc), where your mail is delivered could become an issue, and depending on other factors there could be more..... and yes if there are any collection actions against you that go to judgment, your creditors can come after other assets subject only to State homestead exemptions.

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