Illinois Foreclosure Law

Illinois Foreclosure Laws

Illinois foreclosure law does not allow for non-judicial foreclosures, however judicial foreclosures are allowed.  Typically, a lender waits three, sometimes four months after the first missed payment before initiating foreclosure; however, this varies from lender to lender.  The process officially begins by the lender filing a suit in court to obtain a Judgment of Foreclosure.  The lender is required to file a Lis Pendens with the courts asking for the permission to foreclose and giving the legal notice of intent to foreclose. 

According to Illinois foreclosure law, the borrower is allowed a period of 7 months from either the date of service, or three months from the date the judgment is issued to redeem the property by curing the default.  The date used is the later date in the event that the dates are different.  However, borrowers are sometimes able to postpone judgments from being issued allowing the foreclosure if a defense is used which can cause the process to take from six or even seven months before a judgment is issued for the lender.

If the default is not cured, the lender is issued a Notice of Sale.  The actual sale of the home must be conducted by either a sheriff of by a judge in the county that has jurisdiction according to Illinois foreclosure law.  In addition, the highest bidder must be able to pay a minimum of 10% deposit for the property at the time of purchase, and must pay the remaining balance no later than 24 hours after the auction ends. 

In Illinois, the borrower is not allowed any Right of Redemption once the sale has concluded. 

At times, the Illinois foreclosure laws allow for what is called a Consent foreclosure.  This occurs when the court issues a Judgment of Foreclosure and gives all power and absolute title of the property in question back to the lender with both the lender’s and the borrower’s consent.  In the event that this occurs, the mortgage is considered satisfied and the lender is not allowed to sue for any deficiency judgment; nor is the borrower allowed any rights of redemption.

For more information on Illinois foreclosure laws click here.

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