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There is no Non-Judicial Foreclosure process in Illinois. All foreclosures are conducted through the courts. The lender must file a lawsuit to obtain a judgment for foreclosure and the filing of a lis pendens. The lender may file suit at their discretion, but the general time frame is three (3) to six (6) months after the first missed payment.
When the court issues the judgment for foreclosure, the borrower has a seven (7) month equitable redemption period from the date of service. Alternatively, the borrower may have a three (3) month redemption period from the date that the judgment is issued. Which of these periods applies is determined by which gives a later date for the redemption period to expire. The borrower may delay the issuing of judgment by offering defenses for the suit. But if the borrower fails to redeem the property in the time allowed, a notice of sale is issued.
The notice of sale outlines the terms and conditions of the sale and the sale may be conducted by the county sheriff or a judge in the county in which the property is located.
The high bidder at the sale must deposit 10% of the bid amount following the sale, and the balance is due within twenty-four (24) hours. There is no redemption period after the sale.
A Consent Foreclosure process is occasionally used in Illinois. This involves the court issuing a judgment of foreclosure and conveying absolute title to the lender. The borrower and lender both consent to this arrangement, eliminating the need for sale. The lender considers the defaulted mortgage satisfied and can not sue the borrower for a deficiency judgment. The borrower has no right to redeem the property in this arrangement. |
