Falling Behind and Facing Foreclosure in Illinois

Missed Payments?

Occasionally falling behind on bills, and a late mortgage payment is not uncommon during inflationary periods. Most lenders offer at least a 10-15 day grace period from the payment due date, after which late fees may be assessed.?

After that a lender will probably start calling you and sending letters, as well as offering payment plans and other programs to help owners catch up your payments. If you miss a few payments, however, and reach the 90-day point, your loan could be considered in default. Once you are delinquent by 120 days or more, your lender can initiate foreclosure proceedings in court.???Foreclosures in Illinois are “judicial foreclosures” which means the court system has jurisdiction over the matter.

Breach/Demands

Most mortgage agreements in Illinois contain provisions that require lenders to notify borrowers that a loan is in default before they can take legal action. This notice is called a?breach?or a?demand?letter. They must include several points, including:

·???????The loan default and the reason for the default;

·???????The action that would resolve the default;

·???????Deadline date for resolving the default, usually at least 30 days from the date of the letter; and

·???????Notice that failure to resolve the default will result in the loan being accelerated and the possible sale of the property.

If the defaulted?mortgage is not addressed the lender may start a foreclosure action with the court. The action is usually filed in the county where the property is located, but foreclosures can also be filed in federal court as well.

Foreclosure in Illinois

Foreclosure proceedings start with a complaint filed by the lender. The borrower is served a copy of the complaint and a summons, along with a notice of rights during foreclosure. In most cases, the borrower has?30 days?to file a response or respond. Failure to do so may result in a default judgment for the lender.?

In your response, you can present a defense, if applicable. Depending on the circumstances of the case, the court may enter a summary judgment in favor of the lender, or a trial will be ordered. If the court finds in favor of the lender, a judgment of foreclosure will be entered against you.?

In Illinois, there is a redemption period during which you have the legal right to pay off the total debt plus certain costs and interest and reclaim your property, even after a judgment of foreclosure. The property cannot be sold during the redemption period. The redemption period for residential property expires three months from the date of the judgment or seven months after the service of the initial complaint, whichever is later.?

SALE AND JUDGMENT

Before your foreclosed home can be sold, a?notice of the sale?must be published in the local newspaper for at least three consecutive weeks. You must also be notified by mail at least?10 days?in advance of the sale. At the sale, the property may be sold to the highest bidder or revert to the lender. If your debt is more than the foreclosure sale price, the lender may seek to collect the difference from you through a?deficiency judgment.?

If you are still living in the home at the time of the sale, the new owner may offer you?a cash-for-keys deal. Otherwise, the court order approving the foreclosure sale will usually include a provision that gives possession to the lender or new owner 30 days after the order is entered.??After that, the new owners may seek to evict remaining occupants.?