The Foreclosure Process in Illinois
The foreclosure process in Illinois typically spans from the filing of the complaint to the eviction by the sheriff, averaging around nine months. While foreclosure defense rarely prevents foreclosure, it can significantly prolong the process—sometimes extending up to 24 months or longer. An experienced foreclosure defense attorney can often delay proceedings, especially if lenders are slow to respond to discovery requests or lack organized documentation.
If the property in question is non-residential or abandoned, the foreclosure process can be expedited. Conversely, if the property lacks equity beyond the mortgages and the owner has no additional assets or high income, they may remain in the property without payment throughout the process and beyond. However, for owners with substantial income or assets, prolonging foreclosure could result in additional costs, including attorney fees and accumulating interest. Below is a typical outline of the foreclosure process:
- Default: The date of the first missed payment.
- Filing of Foreclosure: Legal proceedings begin with the filing of a foreclosure complaint.
- Personal Service of Summons: The borrower is officially notified of the foreclosure action.
- Foreclosure Judgment and Order of Sale: Court grants judgment, allowing the property to be sold.
- Reinstatement Period Expires: Typically 90 days after personal service.
- Redemption Period Expires: Generally, seven months after personal service or three months after judgment, whichever is later.
- Foreclosure Sale: The property is sold at a foreclosure auction.
- Foreclosure Sale Confirmed: The court confirms the sale of the property.
- Right to Possession Expires: Typically 30 days after the foreclosure sale is confirmed.
- Eviction by Sheriff: The sheriff evicts any remaining occupants.
- Recording of Foreclosure Deed: The new ownership is officially recorded.
Key Terms in the Foreclosure Process
Reinstatement: This is the payment of all past-due amounts, including costs and fees, to bring the mortgage current. The right to reinstate is typically available once every five years, within 90 days from the date the borrower was served with a summons or became subject to the court's jurisdiction. (735 ILCS 5/15-1602)
Redemption: This involves paying the full principal balance along with all accumulated interest, fees, and costs. For residential properties, the redemption period ends seven months from the service of summons or three months from the judgment of foreclosure, whichever is later.
Special Redemption: A right available if the property buyer at a foreclosure sale is the mortgagee and the sale price is less than the total amount owed. The borrower may redeem the property up to 30 days after the foreclosure sale is confirmed by paying the sale price, additional costs incurred, and interest. (735 ILCS 5/15-1604)
Mortgage: This includes real estate installment contracts over five years, entered after July 1, 1987, with a balance less than 80% of the original purchase price. The Illinois Mortgage Foreclosure Law (IMFL) provides the exclusive method for foreclosing on all mortgages. Certain secured parties in UCC actions may elect to use IMFL under specific circumstances.