Illinois Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Security Instruments: Mortgage
Right of Redemption Period: Only Prior to the Foreclosure Sale
Deficiency Judgments Allowed: Yes
Time Frame: 210-315 Days
Public Notice: Complaint
Illinois is considered to be a lien theory state, which means that a property acts as security for the borrower’s loan. A title for the property in question can be secured with a document called a mortgage. If the borrower defaults on their loan, the property may be foreclosed. In Illinois, only judicial foreclosures are permitted, which means that lenders have to file a lawsuit and obtain court approval for the foreclosure process to be initiated.
The state does not have a post-foreclosure sale statutory right of redemption, which would allow the borrower to reclaim their property after it has been foreclosed by paying the loan in full plus any extra costs. However, on residential properties, there is a seven (7) month right of redemption from either the time the foreclosure complaint is filed or three (3) months from the time that a final foreclosure judgment is entered. The sale of the property may not occur until these periods of time have expired. These redemption rights can only be exercised once every five (5) years.
Deficiency judgments may be obtained when the property that has been foreclosed sells for less than the defaulted amount. The borrower will then still be responsible for the difference between the selling price and what they owed.
Types of Foreclosures Allowed in Illinois
Illinois statute allows for judicial foreclosures on defaulted properties only. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
To begin the process of foreclosure, the lender must file a lawsuit against the mortgagor in Circuit Court and issue the borrower a notice of intent to foreclose at least thirty (30) days before court judgment is passed. In Illinois, Circuit Courts are divided by county and the Chancery Division handles foreclosure proceedings. When a lender files a complaint in Circuit Court, they must also file a Lis Pendens, which is a recorded document that provides public notice that a property is about to be foreclosed. Once court approval for the foreclosure is obtained, the property will be sold at auction to the highest bidder.
In Illinois, mortgagors can offer a deed in lieu of foreclosure, a process in which the defaulted borrower transfers the title of the property to the lender in order to avoid foreclosure and to satisfy the loan obligation. If the lender accepts the deed in lieu of foreclosure, then no deficiency judgment can be passed.
If legal action has already been taken, the borrower can request a consent foreclosure, a form of uncontested foreclosure in which the borrower agrees not to contest the proceedings in order to make the foreclosure process shorter and to also prevent a deficiency judgment. However, the borrower may still be held liable for any court costs and attorney fees.
The entire process of foreclosure usually takes about 215 days for uncontested foreclosures, though it could take longer. The process may be delayed if the borrower contests the action or files for bankruptcy.
Working with a Foreclosure Lawyer in Illinois
The thought of losing a home is one of the most frightening thoughts imaginable. Homeowners that have defaulted on their loans may be in danger of foreclosure, but there is still help available to fight for the property. If you are behind on your loan, speak to a leading foreclosure lawyer in Illinois to fight for your rights and prevent your home from being repossessed.
Foreclosure attorneys do whatever it takes to make sure you don’t lost your home. They will speak to your lender and try to work out an agreement that does not involve repossession. Your foreclosure attorney may suggest mortgage modification, refinancing or even a temporary halt in payments. Since the process of foreclosing a property costs lenders money, if an adequate plan is proposed, your lender will most likely agree to it.
Regardless of why you have fallen behind on your mortgage, you have rights as a homeowner in Illinois. Contact a top team of foreclosure lawyers in Illinois right away to prevent your home from being repossessed.