banking debt foreclosure
Deficiency judgement period after foreclosure in IL
<p>A friend entered in foreclosure in 2014, for a condo in Chicago, IL (Chase Bank). Some time later he received a form 1099-C for cancellation of debt for around $9K. I know there's a deficiency but, while we tried contacting the bank to know what the status of that debt is, nobody in the bank seems to knows the answer.</p>

<p>I want to know what's the period while the bank or a collector can still claim that debt. I know the form 1099-C is only for tax reasons, but I wonder when will that debt will stop being enforceable. Or, what would be procedure, if possible, to get a deficiency waiver with the bank?</p>

<p>A deficiency judgment in Illinois is <a href="http://www.alllaw.com/articles/nolo/foreclosure/deficiency-laws-in-illinois.html" rel="nofollow noreferrer">valid for seven years</a> after it is entered. </p>

<p>A bank has the right to execute a document that treats the judgment as satisfied earlier than that date without receiving full payment, but it is unlikely to do so without partial payment or some other evidence that it would be futile to try to collect the debt (e.g. evidence that the debtor was kidnapped or disabled or dead or in prison).</p>
