What Every Illinois Homeowner Needs to Know About Foreclosure
This guide is specially designed for any homeowner that is facing foreclosure. It answers all the questions you may have and offers solutions to multiple foreclosure scenarios.
How Lenders Seize HomesAfter you have been late paying your mortgage for the third time, the bank sends your loan to its lawyer to begin foreclosure proceedings against you. At this time, the bank's lawyer orders a title report. The title report tells the lawyer who owns the home, all loans secured by the home, any deeds of trust that remain unpaid, and any deed restrictions that limit how the property can be used.
Illinois Foreclosure: 6 to 9 Month OrdealNext, the bank's lawyers prepare the foreclosure lawsuit, which says your property can now be seized because you failed to make your mortgage payments. You will soon be given a summons that tells you the date and time you must appear in court. The lawyers also record a Lis Pendens with the Recorder of Deeds, which stops you from selling your home until the end of the foreclosure.
You Are Allowed to Bring Your Mortgage CurrentThe law gives you 90 days to reinstate your mortgage loan. To do this, you pay the mortgage payments you owe, including costs. On the date you appear in court, any of these can occur:
(1)Request a Continuance: This means you ask the judge to put off making a decision and to schedule a future court date.
(2)Request Time for an Appearance & Answer: If you think you have a strong defense against the foreclosure lawsuit, you can ask the judge to allow you more time to prepare your appearance and answer.
(3) Set a Date for Trial: If the judge thinks you have a valid defense, then he could set a trial date.
(4) Enter a Judgment Against You: At trial, if you lose your case, or if you cannot reach an agreement with your bank, then the judge can enter a judgment of foreclosure and sale against you.
The Redemption PeriodYou have a redemption period during which you can save your property from being sold. The redemption period ends on whichever of these dates is the latest: (1) if you live in the home, then the redemption period ends 7 months after you were served with the foreclosure lawsuit; (2) if you do not live in the home, then the redemption period ends 6 months after you were served with the foreclosure lawsuit; or (3) the redemption period ends 3 months after the Court enters a foreclosure judgment against you.
You Have One More Opportunity to Save Your HomeTo redeem your home, you must pay the full amount of the foreclosure judgment, including money you owe to the lender, taxes, lawyers' fees and court costs, lawyers' fees.
You Have One More Special Right of RedemptionYou have a special right of redemption if the home's sales price is less than the amount you needed to redeem your home and if the bank bought your home. In this case, to get your home back, you must pay the actual selling price, plus costs and fees the Court approves, plus interest. This special right of redemption ends 30 days after confirmation of the sale.
When You Must Vacate Your HomeWhen the sale is confirmed, the Court gives the buyer possession of the home. Usually, the court allows you 30 days from the confirmation sale date to leave the premises. If you don't leave as required, then the bank can ask the sheriff to remove you from the premises.