Illinois Foreclosure Laws

The state of Illinois only allows the judicial method of foreclosure and it begins with the lender filing of a suit to obtain a judgment of foreclosure. Once that is done and there is a legal and public notice of intent to foreclose. The timing is at the lender’s discretion after a missed payment, but is usually somewhere between 3 and 4 months after the first missed payment.

The state only allows the mortgage as a security instrument and there is a limited right of redemption for the borrower and the legal rights for a deficiency judgement varies by case. It typically will take in the range of 210 days for the proceeding to be completed.

If the court should issue a judgment of foreclosure the borrower has 7 months from that date of service to pay the full amount due. If the borrower fails to redeem, a notice of sale is issued.

The sale may be conducted by the sheriff or by any judge in the county according to the terms and conditions contained in the notice of sale provided that such terms and conditions meet minimum statutory standards.

Investors must deposit 10% of their bid amount in cash, and must pay the balance within 24 hours.

The state also offers what is known as a consent foreclosure here and it happens occasionally. This is done when the court issues a judgment of foreclosure and gives absolute title to the property to the lender providing that the lender and borrower’s both consent. In this case the defaulted mortgage is deemed satisfied and the lender may not sue for any deficiency, nor has the borrower any right of redemption.

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