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REAL ESTATE

DEFICIENCY JUDGEMENT & MORTGAGE FORGIVENESS ACT

What is a Deficiency Judgment?

^{This is a judgment against the borrower or debtor when the foreclosure
sale of the property}

^{did
not}^{produce sufficient funds
to pay the loan balance in full.}

^{Example: If your loan balance
is $400,000 and your lender sells it in a foreclosure for only $200,000, your lender reserves the right}

^{to demand}^{payment from you}^{for the remaining balance of $200,000.}

What is The Mortgage Forgiveness Debt Relief and Debt Cancellation Act of 2007?

On December 20, 2007, former President Bush signed into law the Mortgage Forgiveness Debt Relief

and Debt Cancellation Act ensuring that any deficiency written off as part of the short sale will not be taxed.

This is valid until year 2012.

For more information on The Mortgage Forgiveness Act, click here:

For more information on Illinois foreclosure law, click here:

All information contained on this website are for informational purposes only. We recommend that you consult a lawyer for any legal issues.