Foreclosure 101

Below outlines the general foreclosure process. Please note that no case is exactly the same. We recommend that you contact a local professional to discuss your individual situation. The entire foreclosure process in Illinois takes, on average, 9 months.

 

Property owner is 30 days late on their mortgage payment.
Typically, missing your first mortgage payment will not put you at risk for foreclosure. You may, however, begin receiving calls and letters from your lender, as well as a letter of intent to foreclosure. Once you are 90 days behind on your payments, your mortgage lender can legally instigate the foreclosure process.

At this time, it is in your best interest to rework your finances, reach out to your lender for a compromise, or put your home on the market.

Notice to Accelerate
Once you are 60 days past due, your lender will likely send you a notice to accelerate. At this point, the only way to stop your foreclosure process is to pay your past statements plus any late fees and bring your loan current.

Notice of Default (90 days)
At this point, you will receive a Notice of Default (NOD) in the form of a certified letter from the bank, an attorney, or local sheriff. This notifies the start of a foreclosure process and you should act quickly if you want to stay in your home. The NOD will be recorded with the county your property is located in and may harm your credit.

Notice of Sale/Auction
After the Notice of Default has been filed, a lender can schedule date of sale for the property. The homeowner will be mailed a Notice of Sale at least 120 days before the sale date. There will typically be a minimum opening bid, which, if met buy a third party buyer, allows the new owner to take possession in 10 days.

Post-Foreclosure
In the case that the minimum opening bid was not met by a third party, the property will remain in the banks possession and become a Real Estate Owned (REO) property. This usually occurs when many properties up for sale are worth less than what is owed to the lender. These properties will then be listed with local agents.