Illinois Foreclosure Law
Under Illinois Foreclosure Law, lenders have several options to foreclose on a mortgage in default and these are judicial foreclosures, deed-in-lieu of foreclosures and consent foreclosure. The Right of Redemption is not allowed while deficiency judgments are allowed. The duration of the foreclosure proceedings under Illinois Foreclosure Laws usually lasts 210 days.
Illinois does not allow power of sale non-judicial foreclosures. They are explicitly banned by statue. Instead, foreclosure is done by filing a lawsuit
Notice of Foreclosure Judgment
Illinois foreclosure law states that at least 30 days prior to the entry of a judgment of foreclosure, any person identified in the affidavit shall be given a notice of the foreclosure. Such notice of foreclosure must be executed by any party or any party's attorney and shall include the names of all plaintiffs and the case number, the court in which the action was brought, the names of title holders of record, a legal description of the real estate sufficient to identify it with reasonable certainty, a common address or description of the location of the real estate and identification of the mortgage sought to be foreclosed.
The notice of sale shall be published ,in a newspaper circulated to the general public in the county in which the real estate is located, in the section of that newspaper where legal notices are commonly placed at least 3 consecutive calendar weeks (Sunday through Saturday), once in each week, the first such notice to be published not more than 45 days prior to the sale, the last such notice to be published not less than 7 days prior to the sale and such other publications as may be further ordered by the court.
The sale would be undertaken upon the court’s decision in favor of the lender and would proceed on the terms and conditions specified in the notice of sale as provided under the statutes of the state of Illinois. The sheriff or any judge within the county where the property is located may conduct the sale and upon the sale of the mortgaged real estate, the person conducting the sale shall give to the purchaser a receipt of sale
Upon payment in full of the amount bid, the person conducting the sale shall issue, in duplicate, and give to the purchaser a Certificate of Sale. The Certificate of Sale shall be in a recordable form, describe the real estate purchased, indicate the date and place of sale and show the amount paid therefore.
Deed in Lieu of Foreclosure
Another available avenue for the borrower is the deed in-lieu of foreclosure that is when the mortgagor (borrower) voluntarily gives the deed (or title) to the property back to the mortgagee (lender) in order to avoid foreclosure.
The advantage of using this strategy as a borrower is that you will have no deficiency judgment, you will have no (or few) late payments to damage your credit and your debt will be forgiven.
Consent Foreclosure
A consent foreclosure will vest all the borrower’s right and title in the lender free and clear of all claims (except liens of the U.S. Government) including rights of reinstatement and redemption of any junior lien holder who was properly joined and who failed to object. The final judgment in a consent foreclosure must recite the lender’s waiver of right to any personal judgment for a deficiency and will bar a deficiency against not only the borrower, but any co-borrower or other person who is liable for the mortgage.
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