Illinois Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Usually 210 days
- Right of Redemption1: No
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Illinois may foreclose on a mortgage in default using one of several methods. Power-of-sale clauses are void in Illinois.
Judicial Foreclosure
The borrower and/or any other person entitled by statute to receive notice of the lender’s intent to foreclose must receive such notice at least thirty (30) days prior to the court’s judgment of foreclosure.
If the court finds in favor of the lender and issues a notice of sale, the sale will be conducted on the terms and conditions specified in the notice of sale, as per Illinois statute. Typically, the county sheriff or any judge may conduct the sale in the county where the property is located.
The borrower has no rights of redemption after the foreclosure sale.
Deed In Lieu Of Foreclosure
The borrower and the lender may agree on a mutual termination of the borrower's interest in the property after a default. The lender or their representative may accept a deed from the borrower in lieu of foreclosure subject to any other claims or liens affecting the real estate. Acceptance of a deed in lieu of foreclosure shall relieve from personal liability all persons who may owe payment or the performance of other obligations secured by the mortgage.
Note: simply because a borrower offers a deed in lieu of foreclosure doesn’t mean the mortgagee is required to accept it.
Consent Foreclosure
With a consent foreclosure, the court enters a judgment satisfying the mortgage by giving absolute title of the mortgaged property to the lender. The borrower has no rights of redemption. The lender has no right to file a deficiency judgment.
Common Law Strict Foreclosure
Under strict foreclosure, when a borrower defaults, a court orders the borrower to pay the mortgage within a specific period of time. If the borrower fails, the lender automatically gains title, with no obligation to sell the property. No public sale occurs.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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