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How are Illinois mortgages foreclosed?
In Illinois, the lenders go to court in what is known as a judicial foreclosure proceeding where the court must issue a final judgment of foreclosure. The property is then sold as part of a publicly noticed sale. The court with jurisdiction over a foreclosure is known as the circuit court. In Illinois, the circuit court are broken down by county, and the Chancery Division handles foreclosures. A complaint is filed in circuit court along with what is known alis pendens. Alis pendens is a recorded document that provides public notice that the property is being foreclosed upon.
In Illinois, a party can offer a Deed in Lieu of foreclosure, which effectively deeds the property back to the lender. There can be no deficiency judgment if the lender accepts a Deed in Lieu of foreclosure.
How long does it take to foreclose a property in Illinois?
Depending on the court schedule, it usually takes approximately 215 days to effectuate an uncontested foreclosure. This process may de delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy. Property owners have a right to reinstate a defaulted mortgage within ninety (90) days of the personal service of the foreclosure complaint. Property owners have thirty (30) days after the foreclosure sale is confirmed to retain possession and occupancy of the property at the expiration of which they must vacate.
Are deficiency judgments permitted in Illinois?
Yes, a deficiency judgement may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan. Deficiency judgments are not permitted in cases of a Deed in Lieu of foreclosure.
What statutes govern Illinois foreclosures?
The laws that govern Illinois foreclosures are found in 735 ILCS 5/Art XV. To view these statutes on the Web, you can visit:
http://www.ilga.gov/legislation/ilcs/ilcs4.asp
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