For homeowners facing foreclosure in Illinois, the following is a summary of the state’s foreclosure laws:
Illinois only allows judicial foreclosures, meaning a bank must file a lawsuit in order to foreclose on a home.
Nonjudicial foreclosure is not permitted in Illinois.
Illinois law requires the following notices:
- To begin the foreclosure, a bank must file a lawsuit and send a notice of the suit to the homeowner with a complaint and summons, as well as indications as to the homeowner’s rights during the foreclosure process. The homeowner has 30 days to file a written response with the court.
- When the bank gets a court judgment against the homeowner, the sale will be authorized. Notice of the sale must be published once a week for three consecutive weeks.
- The bank must also send a notice of sale to the homeowner at least ten business days before the sale.
Illinois law provides protections in accordance with the federal Service Members Civil Relief Act.
Illinois law also provides special protections against foreclosure to members of the military deployed to a combat zone within the previous 12 months, who may apply for a 90 day stay, and to high-risk home loan homeowners.
Also, an active service member who has been deployed for more than 29 consecutive days can file a motion with the court seeking a stay of foreclosure proceedings.
For service members who cannot pay mortgage payments or appear in court, the court may:
- Postpone the proceedings for a period of 90 days after a return from military service
- Reduce the monthly payments for up to 90 days after a return from military service
Before a lawsuit can be filed on a high-risk home loan, the bank must notify the homeowner of the right to cure the default within a month. Also, a homeowner may raise violations of the high-risk home loan law, including a prohibition on prepayment penalties and negative amortization as a defense against foreclosure action.
Reinstatement and Redemption
Under Illinois law, the homeowner may reinstate the mortgage within three months after being served the foreclosure complaint.
In Illinois, the homeowner can redeem the home until:
- Seven months after receiving the summons of the foreclosure action.
- Three months after the date that the court enters the foreclosure judgment.
There is also a special right to redeem in Illinois if:
- The bank buys the home at the foreclosure sale, and the sale price was less than the total owed, including principal, interest, foreclosure fees, and other costs. In this situation, the homeowner can redeem within a month after the court confirms the sale by paying the foreclosure sale price plus interest and costs.
In Illinois, the bank can receive a deficiency judgment as part of the foreclosure action if:
- The foreclosure complaint is personally served to the homeowner
- The homeowner is not personally served, but they submit an appearance in the foreclosure action.
The foreclosed homeowner can remain in the home for 30 days after confirmation by the court of the sale. Following this period, the former homeowner must move out. For information regarding how to avoid foreclosure in Illinois, visit HUD.gov.