Illinois Foreclosure Law
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Below you will find information specific to Illinois foreclosure law. A brief breakdown of foreclosure facts are listed in the table and are defined more thoroughly just below the table:
| Judicial Foreclosures | YES |
| Non-Judicial Foreclosures | NO |
| Primary Security Instruments | Mortgage |
| How long does it take? | 7 to 10 months |
| Right of Redemption | Yes |
| Deficiency Judments Allowed? | Yes |
| Sale Publication Period | N/A |
| Sale/NTS | Court |
Judicial Foreclosures
In the great state of Illinois, Judicial foreclosure is the only foreclosure proceeding available to lenders. Illionois foreclosure law states lenders must file a complaint to foreclose mortgage with the courts along with a lis pendens, prior to pursuing foreclosure. The court with jurisdiction over foreclosures is known as "circuit court". Although most judicial foreclosures require more time and effort, they can sometimes be a short process. When borrowers/defendants are served in a timely manner and do not contest the judgment, a judicial foreclosure may be completed in as little as 90 days. These 3 months relates to the time given to a homeowner to bring his account current including all applicable fees.
A deed in lieu of foreclosure is a good alternative to foreclosure with Illinois foreclosure law; since once the lender agrees to take the property back, it cannot pursue a deficiency judgement. If legal action has already started, the borrower can request a consent foreclosure-form of foreclosure in which the homeowner agrees not to contest the foreclosure therefore decreasing the time of the foreclosure proceedings. This "consent foreclosure" allows the court to enter a judgement satisfying the mortgage and assigning the lender absolute title to the home. There’s not a right of redemption period in this foreclosure mechanism and based on judicial discretion, it prevents a deficiency judgment. A homeowner, however, would still be liable for court and attorney fees.
Non-Judicial Foreclosures
The convenient, non-judicial sale is entitled to come forth by a power of sale clause, which is not included in the security instruments Illinois foreclosure law. Therefore, foreclosures require court action. "Common law strict foreclosure" is yet another method available in the state of Illinois.
Primary Security Document
Mortgage is the security document recognized Illinois foreclosure law. The power of sale clause is not part of this instrument as non-judicial foreclosures are not allowed.
Timeline
In Illinois foreclosure law, the complaint to foreclose mortgage must be served on the defendant (homeowner), but if the borrower cannot be reached, a service by publication is acceptable. Once served, or considered so, the homeowner has 30 days to file an "Answer" with the court. If the borrower chooses not to respond, the court can at this point enter an order of default upon request. If an "Answer" is filed contesting the complaint to foreclose, both parties involved will engage in legal action and perhaps even go to trial.
In the event the borrower does not respond to the complaint and the court subsequently declares foreclosure, the homeowner is given a 90-day pre-foreclosure right of redemption if he is occupying the property or a 30-day redemption period if the home is vacant. After this time period expires, a notice of Sheriff’s sale must be published on the local paper once each week for 3 consecutive weeks. The last notice must be published no less than 7 days prior to the sale date.
The opening bid of the foreclosure auction is usually for the full amount owed by the borrower. Upon completion of the sale (the winner is the highest bidder), the new owner of the property receives a "certificate of purchase". Sheriff or the selling officer is required to submit a "report of sale" within 10 days of the sale date. The actual Sheriff’s deed is only issued after a confirmation of sale by the court; which means that after the foreclosure sale and report of sale are completed, a motion to confirm sale must be filed to request a confirmation by the circuit court.
Right of Redemption
If and when a judgment is entered on behalf of the lender, the homeowner has a three month pre-foreclosure statutory right of redemption period. If the homeowner vacates his or her property and the home is deemed abandoned, the three months may be shortened to 30 days. By the same token, the court has also the ability to increase this pre-foreclosure right of redemption period. Upon expiration of this timeframe, all occupants must vacate the property to avoid further action. An individual can only exercise hers or his rights of redemption and reinstatement once every five years.
Related Links:
Illinois Foreclosure Attorneys: Here you'll find a list of foreclosure attorneys specific to your area. Speak with an attorney that can help you make the best decision possible.
Deficiency Judgment: Allows lenders to get a judgement agianst you in the amount of the deficiency after a sale at auction. Read more about it here.
Right of Redemption: Even if you've lost your property to auction, you may be able to get it back. Here is more information about what right of redemption actually is.
Lis Pendens: When a lender files suit against a borrow. Find out more details about what is included with a lis pendens that is filed to a court.