Navigating the Illinois foreclosure laws alone can be stressful and confusing. To help borrowers understand foreclosure proceedings, we’ve put together this helpful guide that explains the foreclosure process in IL. Our comprehensive guide provides useful information for readers from the first missed payment up until court proceedings.
This guide will give borrowers the overall timeline and foreclosure process in IL. However, we advise that those facing foreclosures hire a real estate attorney to represent their case. A real estate attorney can provide counsel on loss mitigation options and ultimately stop foreclosure.
What is the foreclosure process in IL timeline?
In the State of Illinois, banks and government agencies usually complete foreclosure in 12-15 months. Below is the timeline from a borrower’s first missed payment through court proceedings.
90-120 days delinquent
The foreclosure process in IL starts when mortgage payments become delinquent. The lender will file a lawsuit to foreclose against the borrower 90-120 days after someone misses their first payment. In this case, the “borrower” is anyone associated with a vested interest in the property. Examples of individuals with a vested interest are a cosigner, spouse, liens against your house, and even your HOA.
120-175 days delinquent
Next, the process server will serve the borrower with the foreclosure lawsuit in person. In addition, the process server will give the borrower a summons to appear in court. Meanwhile, the local newspaper will list the foreclosure notice prior to the court hearing.
After the borrower receives the summons and lawsuit, it’s best to contact a mortgage and foreclosure lawyer (if the borrower has not yet done so). A lawyer will help the borrower decide the best response to file with the Court. Legally, this timeline is 30 days after being served. However, the court often extends this timeline in practice. If the borrower does not submit an answer, request an extension, or appear in court, the court will enter a default judgment against them to continue the foreclosure proceedings.
Lenders must then prove their case for foreclosure. Lenders can do this through the presentation of missed payments and loan documents to the court. The court will then either enter a summary judgment or proceed to trial. If the court grants the lender the summary judgment or the borrower loses at trial, the court orders the home for the foreclosure sale. This order will include a foreclosure sale date for the home.
90 days after being served
Borrowers still have the option of reinstatement before sale within 90 days of being served. Reinstatement requires the borrower to bring the delinquent loan current by paying the past due amount and all associated costs and fees. Legally, the borrower has 90 days after the court has served them a summons or publication. Likewise, the borrower has 90 days after they’ve received a judgment from the court that foreclosure proceedings will continue. However, in practice, loan servicers will generally allow borrowers to reinstate up to the scheduled foreclosure sale.
7 months after being served
The State of Illinois also provides borrowers with a redemption period. This period is where the buyer can pay off the entire loan and associated costs and fees. The foreclosure sale cannot occur until the expiration date of the redemption period. This expiration date is seven months after the process server serves the initial complaint or three months after the date the court issues the judgment. The property’s foreclosure sale will result in a sale to the highest third-party bidder, or the lender will take possession of the home.
Eviction is the next step in the foreclosure process. An eviction requires the borrower to exit the premises within 30 days, and the new owner (or bank) takes possession of the home.
What are the Illinois foreclosure notice requirements?
Federal law requires a borrower must be 120 days delinquent on their payments before filing with the state court to begin foreclosure proceedings. Using these 120 days to contact a lawyer and explore options like loss mitigation can help get payments back on track and avoid foreclosure.
When the lender files a lawsuit to foreclosure in state court, the process server serves a complaint and summons to the borrower. The borrower then has 30 days to file an answer.
Illinois state law requires that the process server publish the foreclosure sale in a newspaper at least once per week for three consecutive weeks. State law also requires process servers to mail this notice to all defendants, including the homeowner, a minimum of ten business days before the foreclosure sale date.
The process server must mail the foreclosure sale notice to the homeowner and other vested parties (defendants) at least ten days prior to the scheduled foreclosure sale.
Foreclosure documents you need before you foreclose
The court requires foreclosure documents before it can process a foreclosure. These documents include:
- Original loan documents: promissory note and mortgage and/or deed of trust
- Complaint for foreclosure
- Notice of default (NOD)
- Lender documentation that shows the total delinquency
- Notice of lis pendes
- Property appraisal
- Summons to court
Home foreclosures can be a stressful and scary process for homeowners. The Law Offices of Lora Matthews Fausett, P.C. can help borrowers navigate the tumultuous process by providing loss mitigation and foreclosure counseling, outlining borrowers’ options, and representing homeowners in court. We provide foreclosure defense in Illinois, including loan modification, repayment plans, forbearance, and short sales. Whether you are potentially facing foreclosure or already involved in foreclosure litigation, our experienced team of attorneys can help. Please give us a call at (630) 858-0090 or fill out our form to get started with a consultation.
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