Illinois Law

Illinois Foreclosure Law Summary

Quick Facts

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: No

- Primary Security Instrument: Mortgage

- Timeline: Typically 210 days

- Right of Redemption: No

- Deficiency Judgments Allowed: Yes

Lenders in Illinois have a number of options available to them to foreclose on a mortgage in default.

Judicial Foreclosure

A notice of the lenders intent to foreclose must be given to the borrower, and any other person entitled by Illinois statutes to receive notice, at least thirty (30) days prior to the courts judgment of foreclosure.

If the court finds in favor of the lender and issues a notice of sale, the sale will be conducted on the terms and conditions specified in the notice of sale, provided they meet the minimum standards provided in the Illinois Statutes.

The sheriff or any judge within the county where the property is located may conduct the sale. The borrower has no rights of redemption after the foreclosure sale.

Deed in Lieu of Foreclosure

If the borrower has defaulted on the mortgage and the lender agrees, the borrower may simply give the deed to the lender and his interests in the property securing the deed will be terminated. If the lender agrees and accepts the deed, they may not seek to obtain a deficiency judgment against the borrower at any time afterward.

Consent Foreclosure

In this type of foreclosure, the court enters a judgment satisfying the mortgage by giving absolute title to the property secured by the mortgage to the lender. The borrower has no rights of redemption after this type of foreclosure judgment has been rendered and the lender may not file for a deficiency judgment.

Lenders may also foreclose on a mortgage in default by using the common law strict foreclosure method, but Illinois law does not permit non-judicial power of sale foreclosures.

Click here for more information on Illinois foreclosure laws.

Details of the Illinois Foreclosure Law

General Foreclosure Questions

Illinois Foreclosure process and sheriff's sales

THE QUESTIONS PEOPLE HAVE ABOUT THE ILLINOIS MORTGAGE FORECLOSURE PROCESS AND SHERIFF'S SALES.

1. Q. How long does the foreclosure process last?
1. A. It takes approximately six to eight months from start to finish before you lose your home.

2. Q. What is a Sheriff's Sale?
2. A. A Sheriff's Sale is a public auction of your home which takes place at the end of the foreclosure process.

3. Q. When do I have to leave my home?
3. A. If you don't stop the Foreclosure Process prior to the Sheriff's Sale and a sale does take place, you should move your family and possessions out within two to three weeks after the sale....... if you do not want the Sheriff to evict you, your family, and your personal belongings.

4. Q. When can I stop the Foreclosure Process?
4. A. You can stop the foreclosure process at anytime prior to the Sheriff's Sale. At the time of the Sheriff's Sale, you lose your rights and the legal title to your property. However, you must never wait until the day of the Sheriff's Sale to start protecting yourself. If you decide to save your property, you will need to contact an expert at least a few days before the sale so that he or she can prepare the documents necessary to stop the sale.

5. Q. How can I stop the sheriff's sale and foreclosure process?
5. A. You can stop the Sheriff's Sale and Foreclosure Process by a number of methods.

Sell your property
You can sell your property........... however, you will have to get enough profit from the sale to pay off all the mortgage debt, as well as the closing costs and the five to seven percent Real Estate Broker's fee. Of course, then you will need to find another home.
Refinance your home
You can refinance your home and pay off the mortgage........ however, often times lenders are unwilling to work with you unless you have at least 30% or more equity in your property. Many times lenders are unwilling to work with someone who has a foreclosure on their credit report.
Reinstate your mortgage
You can also stop the sheriff's sale and foreclosure process by paying the entire amount of the unpaid mortgage payments that you are behind. As well as the bank's attorney fees, court costs, mortgage interest, late charges and any other funds that your bank may have forwarded on your behalf such as tax payments, insurance payments, inspection fees etc. This payment can be done generally anytime prior to the Sheriff's Sale and is usually called redeeming or reinstating the mortgage. You will need to get the redemption or reinstatement amount from your Mortgage Lender's Attorney. However, don't wait until just before the Sheriff's Sale to do this because it usually takes your Mortgage Lender's Attorney's office a week to ten days to compile the amount necessary for you to bring your loan current and stop the Sheriff's Sale.
File chapter 13
If you cannot get enough money together to redeem or reinstate your mortgage then you can contact an Attorney see Links page for some attorney choices and make an arrangement to stop the Sheriff's Sale by reorganizing your Mortgage Payments and Fees you owe. You can reorganize your debt by protecting yourself with the United States Bankruptcy Chapter 13 laws which Congress enacted to allow you to spread out your missing Mortgage Payments and fees over an extended period of time (usually approximately two years) while allowing you to again start making your regular monthly mortgage payments.

6. Q. Is it true that I can be taken advantage of during the foreclosure process?
6. A. During the foreclosure process, you must be especially careful of whom you seek help and advice from. You will receive dozens of letters, some phone calls and even a few visitors to your home claiming to be your new found best friend and the answer to all your foreclosure problems. The truth is that there are many people who, as sick and sad as it may seem, are just out to take advantage of people in the Foreclosure Process. They take advantage of anyone who is in a panicked situation and might be vulnerable to a quick fix to their problems.......... which in the long run can be far more costly and disastrous than first appears. "Borrowing from Peter to pay Paul" is never a good idea. Additional debt is not the answer to your problems. Also, many of these "friendly foreclosure helpers" want you to give them the deed to your home in exchange for helping you out. However, one must never give up their home ownership without giving it serious thought and without seeking competent legal advice. PLEASE don't jeopardize your home for a deal that sounds too good to be true because it probably is. Be aware of your rights before signing any agreements to refinance or sell your real estate.