Question: What happens to an investment property foreclosure that’s under your personal name? Can they go after your personal assets, home, etc? Under Illinois law.
Answer: -As with all states, it depends on what’s in the agreement with you and the bank. Just look at the closing docs and it should specify what happens. For most lenders, the property is sufficient collateral for the loan or they wouldn’t be loaning you the money in the first place, so they don’t come after you for anything else. However, since I don’t invest in Illinois nor am I familiar with all their laws, you may want to get a 2nd opinion with a local attorney.
Appreciate the info guys, thanks
Thank you for sharing your insight on a topic that many investors may not think will ever happen to them. As an investor, it is crucial to evaluate the bigger picture when it comes to purchasing investment properties under a personal name. After all, if something happens with your tenant and you are unable to make the agreed upon mortgage, you will be hearing from the lender very quickly. Make sure you evaluate all of the costs related to an investment property before making a large purchase in hopes of avoiding something like a foreclosure. Thanks again for sharing!
Thanks for sharing your thoughts on such an important topic. One of the biggest problems with new property investors is that they don’t think about the unthinkable, such as a property foreclosure or a tenant bankruptcy. Both of these things can wreak havoc on your finances if you haven’t prepared properly. I suggest doing a thorough evaluation of your finances before purchasing a rental property, as well as following a strict tenant screening process to avoid financial issues popping up in the future. Thanks again for sharing!