Illinois Foreclosure Laws

I created this website to help the thousands of Michigan families faced with the foreclosure of their home. Whether you are in foreclosure, facing a short sale, or even a bankruptcy I sincerely hope that the information on this site helps you to make an informed decision.

John

Disclaimer

None of the information on this site should be construed as legal advice. You should always consult an attorney for advice about your specific foreclosure situation.

How Wikapedia.org explains foreclosure…

Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption.[clarification needed] Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowners’ association dues or assessments.

The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage or lien”. If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.

Judicial Foreclosure Yes
Non-Judicial Foreclosure No
Security Instruments Mortgage
Right of Redemption Yes, limited
Deficiency Judgments Varies
Time Frame Usually 210 days

Judicial foreclosure in Illinois begins with the filing of a suit to obtain a judgment of foreclosure; and the filing of a lis pendens, which is a legal and public notice of intent to foreclose. The timing is at the lender’s discretion after a missed payment, but is usually 3-4 months after the first missed payment.

If the court issues a judgment of foreclosure the borrower has 7 months from the date of service (or three months from the date the judgment is issued, whichever is later) in which to redeem the property by paying the amount due. Because the borrower may offer defenses to the suit for a judgment, 6 or 7 months may pass before the judgment is issued. If the borrower fails to redeem, a notice of sale is issued.

The sale may be conducted by the sheriff or by any judge in the subject county according to the terms and conditions contained in the notice of sale; provided that such terms and conditions meet minimum statutory standards.

Investors must deposit 10% of their bid amount in cash, and must pay the balance within 24 hours. The foreclosed owner has no right of redemption following the sale.

Consent foreclosure is occasionally used in Illinois. It involves the court issuing a judgment of foreclosure and giving absolute title to the property to the lender with the lender and borrower’s consent. There is no sale. In this case the defaulted mortgage is deemed satisfied and the lender may not sue for any deficiency, nor has the borrower any right of redemption.