Illinois Foreclosure Law Information
81Illinois Foreclosure Law Information
When a borrower has missed payments on their mortgage causing the mortgage to go into default, the lender has the right to begin foreclosure proceedings under Illinois foreclosure law. Illinois foreclosure law states that the lender is permitted to file a lawsuit in order to begin judicial foreclosure proceedings, as a non-judicial “power of sale” foreclosure is not allowed under Illinois foreclosure law. The law details the steps that will need to be taken by both the lender and the borrower to secure their rights under the foreclosure law and ways that the parties may speed up, delay, or resolve the conflict before the foreclosure proceedings have been completed.
Methods Of Foreclosure
Under Illinois foreclosure law, there are several different methods of foreclosure that may be used by the lender to obtain control of the property listed in the mortgage agreement and sell it to pay off the balance of the debt. The lender can choose to initiate a traditional foreclosure, a strict foreclosure, or a consent foreclosure. A traditional foreclosure is the most common foreclosure method used in Illinois, as it tends to be less complicated than a strict foreclosure. In a consent foreclosure, the rights of the borrower regarding the property in question are transferred to the lender free and clear of all claims, allowing the lender to do as they will with the property to recoup their losses. All three of these foreclosure methods are judicial and must begin with a petition to the courts.
Under Illinois foreclosure law, the foreclosure proceedings are initiated when the lender files a plaintiff’s complaint with the courts of the county where the property in question is located. The plaintiff’s complaint outlines the reasons that the lender is seeking foreclosure along with detailed information about the property and mortgage agreement. The plaintiff’s complaint includes the general information about the mortgage or deed that is in default, the amount that the mortgage is in default, a legal description of the property, and a description of the default. The complaint also lists the names of the owner and any other individual that may have rights to the property that the lender is seeking to foreclose on.
Any facts to support attorney’s fees or special matters must be included in the complaint as well. During the court proceedings, the borrower will have a chance to explain why the mortgage agreement is in default and make any circumstances that led to the default clear to the judge and other parties in the foreclosure lawsuit. If the borrower is found to be in default under Illinois foreclosure law, the rights to the property are transferred to the lender, who will then sell the property at public auction to obtain the balance of the mortgage loan. The details of the sale will be outlined in the foreclosure documents, dealing with such issues as whether the sale will be an open auction or by closed bid, where the signs for the sale will be placed on the property, and which newspapers the sale will be advertised in.
vote upvote downshareprintflag
- Useful (1)
- Funny (1)
- Awesome (1)
- Beautiful
- Interesting (1)
CommentsLoading...
Go talk to the lender and see if you can work something out with them, like a temporary freeze on your payments, or a lower rate. A lot of banks are in trouble right now, so maybe they would be willing to bend a bit for you.
just got papers for foreclosure summons. Have tried working for reduction, have requested Deed In Liew, short sale and the property is up for sale. We are no longer in the home. Do we have to attend the proceedings or answer the summons?
I'm 3 months behind with my mortgage payment and I receivd a foreclosure summons. my house worth is around 300K now but I owe the bank 311K and my house If I just walk away and the bank takes the house and sell it for less than my balance, do I need to come up a difference between the sale amount and my balance? Are they going to sue me for the
remaining balance possibly to garnish my paycheck?
I'm a real estate investor near St. Louis, MO. For people in the situation of an upside down mortgage (mortgage more than value), you might want to find a local investor that will take the property in a short sale. A short sale is when an investor negotiates with the bank to take the defaulted property off the bank's books for a discount. The bank is responsible for a lot of fees, taxes, liens and the legal costs of foreclosing on a property. Investors usually have financing arranged and can put the numbers together for a bank that shows how they'd be better off discounting the property and selling it instead of owning a non-performing asset. The bank has a credit rating just like you, when they have REOs (bank-owned property) their credit rating goes down and they pay more in interest to the Fed. When an investor takes your property, he will assume all responsibility for the debt. This is a good solution for sellers in that possition and often the last resort. But, it IS there. This will keep foreclosure off your record, erase any debt you'd be left with after the foreclosure sale, and allows you to get out of a mortgage you can no longer afford. If you'd like more information on this process, contact me at WAWilliams80@yahoo.com
Wes Williams
How can I file a delay in court to bide some time against judgment of foreclosure?
My wife and I filed for Bankruptcy and gave up everything the car was repo'd and the house was in foreclosure proceedings and the auction was placed in the local paper. Should we have received notice of the auction date and how much time do I have after the auction to vacate the premises as finding a rental has been very difficult.
What are the consequences of a strategic default in Illinois?
1. Can lenders sue for other assets?
2. Can lenders get 401k monies?
3. Can lenders sell the defaulted mortgage to collection agencies?
I'm looking to help people stave off foreclosure through aggressive motion practice at a low cost to them. If you are being foreclosed in Cook County, I'd like to see if I can help you. Feel free to email me at chicagoattorney8@gmail.com
Yes, in the state of Illinois, banks can theoretically go after you for the differences between the loan amount and the sale price of your property. However, if you are poor and have no assets, banks don't bother. Otherwise, if you do have assets, either you hide them or something or banks WILL go after you. I've seen it happen before.
Do I have to respond to a foreclosure summons. I found a job in another state and moved after struggling to find a job in Illinois. My condo was under water in value and I just owed more than it was worth. I am renting now. I have been served a summons when someone came to my door. I want this to be over with as quickly as possible. My first missed payment was in September of 2011. Do I respond to this summons and pay the fee or will this delay anything if I do. I don't want to do anything to make matters worse, Illinois is a judicial state. I have debt and don't want to file bankruptcy but do want to do everything I can to get my deficiency excused. Is it wise to ignore this summons or would it be unwise? I want to pay my debt off even if it is stacked up since I was had a job loss a few years ago and lost quite a bit of my income since buying.
Omar Muhammad 4 years ago
My mother passed away on MARCH 24,2007. I was paying her mortgage but soon ran into financial trouble I will be able to get caught up but they sent me papers stating I have to go to court due to foreclosure proceedings. What should I do