Chicago Business Litigation Lawyer Blog
A couple who defaulted on their mortgage filed suit against prospective purchasers who dropped out of a short sale agreement shortly before closing. Though the couple later sold the property at a different short sale, the appellate panel determined that the $35,000 difference in the prices was a loss attributable to the bank that owned the mortgage. As such, the panel affirmed the decision of the district court regarding the calculation of damages.
Hartwell P. Morse III and Deborah B. Morse owned property commonly known as 282 Stonegate in Clarendon Hills, Illinois. The property was encumbered by two mortgages, one held by Chase Bank and the other held by PNC Bank. The Morses defaulted on both mortgages. In August 2015, the couple entered into a contract for the sale of the property to Anthony Donati and Concetta Donati for $410,000.
The contract contained a “short sale addendum” which indicated that the plaintiffs were selling the property for less than they owed on their mortgages. The sale was contingent upon the plaintiffs’ obtaining PNC bank’s consent. In September 2015, the bank consented to the sale, provided that it received all of the proceeds and that the plaintiffs received $0 at closing. The bank also agreed not to pursue a deficiency judgment against the plaintiffs. Continue reading ›