Illinois Foreclosure Law Summary
Most Common Method of Foreclosure: Judicial.
Foreclosure by Power of Sale Permitted?: No.
A Judicial Foreclosure Procedure: Initiated by complaint or counterclaim which meets requirements. Must record notice of foreclosure, which must include information regarding the pending foreclosure, like a lis pendens. After judgment, the sale is conducted by a judge or sheriff.
Preforeclosttre Notice:
Number of Notices: One: Notice of Sale.
Amount of Notice Required: Not more than forty-five days and not less than seven days pre-sale.
Content of Notice of Sale: a) Name, address, and phone number of person to contact for information; b) common address and description of the property; c) legal description of the property; d) description of improvements; e) times for inspection; f) time and place of sale; g) terms of sale; h) the case title, case number, and court in which foreclosure was filed; and i) such other information as ordered by the court.
Method of Service: By publication for three consecutive weeks, once per week, with the first notice published not more than forty-five days prior to the sale and last notice not less than seven days pre-sale.
Right to Cure Default/Reinstate: Ninety days from the date of service of the complaint.
Redemption: Generally, until the latter of seven months after service of complaint or three months after the entry of judgment of foreclosure.
Post-Sale Provisions Regarding Proceeds: The person conducting the sale must file a report of sale with the court. The court then conducts a hearing to confirm the sale.
Deficiency: A deficiency judgment is obtainable. Surplus is held by a person appointed by the court until the court orders distribution.
High-Cost Home Loans: Under the High Risk Home Loan Act, lender must send credit counseling notice to borrower who has been delinquent more than 30 days. If the lender is notified in writing by an approved credit counselor within 15 days after mailing that the borrower is seeking approved credit counseling, the lender may not initiate foreclosure action until 30 days after the date of such notice, unless the parties have otherwise entered into a written debt management plan within the 30-day period. Lender of a high risk loan with legal right of foreclosure must use judicial foreclosure proceedings. Before filing foreclosure action, lender must give at least 30-day notice of right to cure default, including sufficient information for borrower to calculate amount necessary to cure default if amount will change during 30-day period due to permitted late fees or daily interest. The notice must also include deadline for curing default (not less than 30 days), consequences of failure to cure, and the names, addresses and telephone numbers of persons to contact to pay or dispute the default. If a provision of a loan agreement violates the Act, that provision is unenforceable against the borrower. (The statute forbids, inter alia, call provisions and balloon payments.) Borrower may raise violations of Act against assignee (unless the assignee exercises due diligence and takes other precautions to avoid accepting assignment of high-cost home loans) as claims or defenses in foreclosure or collection actions, or in actions to enjoin foreclosure or regain possession.
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