Quick Facts
– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: No
– Primary Security Instrument: Mortgage
– Timeline: Typically 210 days
– Right of Redemption: No
– Deficiency Judgments Allowed: Yes
Lenders in Illinois have several options available to them to foreclose on a mortgage in default.
Judicial Foreclosure
A notice of the lender’s intent to foreclose must be given to the borrower and any other person entitled by Illinois statutes to receive notice at least thirty (30) days before the court’s judgment of foreclosure.
Suppose the court finds in favor of the lender and issues a notice of sale. In that case, the sale will be conducted on the terms and conditions specified in the sale statement, provided they meet the minimum standards provided in the Illinois Statutes.
The sheriff or any judge within the county where the property is located may conduct the sale. The borrower has no right to redemption after the foreclosure sale.
Deed in Lieu of Foreclosure
If the borrower has defaulted on the mortgage and the lender agrees, the borrower may give the deed to the lender, and his interests in the property securing the act will be terminated. If the lender agrees and accepts the deed, they may not seek to obtain a deficiency judgment against the borrower at any time afterward.
Consent Foreclosure
In this type of foreclosure, the court enters a judgment satisfying the mortgage by giving absolute title to the property secured by the mortgage to the lender. The borrower has no redemption rights after this type of foreclosure judgment has been rendered, and the lender may not file for a deficiency judgment.
Lenders may also foreclose on a mortgage in default by using the common law strict foreclosure method, but Illinois law does not permit non-judicial power of sale foreclosures.
