| Answers |
How are mortgage liens treated in Illinois?
Illinois is known as alien theory state where the property acts as security for the underlying loan. The document
that places the lien on the property is called amortgage. Power of sale foreclosures are not permitted in Illinois.
 top
|
FREE 7-DAY TRIAL!
You're only seconds away from searching foreclosures FREE for 7 days with America's largest and most trusted database.
It's fast and easy!
|
How are Illinois mortgages foreclosed?
In Illinois, the lenders go to court in what is known as ajudicial foreclosure proceeding where the court must
issue a final judgment of foreclosure. The property is then sold as part of a publicly noticed sale. The court with
jurisdiction over a foreclosure is known as theCircuit Court. In Illinois, theCircuit Courts are broken
down by county, and the Chancery Division handles foreclosures. A complaint is filed inCircuit Court along with
what is known alis pendens. Alis pendens is a recorded document that provides public notice that the
property is being foreclosed upon.
In Illinois, a party can offer aDeed in lieu of foreclosure, which effectively deeds the property back to the lender.
There can be no deficiency judgment if the lender accepts aDeed in lieu of foreclosure.
If legal action has already ensued, the property owner can request aConsent Foreclosure, which shortens the
foreclosure process, and based on judicial discretion, will further prevent a deficiency judgment, although the property
owner may be liable for court costs and attorney fees.
top
|
What are the legal instruments that establish a Illinois mortgage?
The documents are known as themortgage,note, and in a commercial transaction, asecurity agreement.
Sometimes the mortgage document is combined with thesecurity agreement. Amortgage is filed to evidence the
underlying debt and terms of repayment, which is set forth in thenote.
top
|
How long does it take to foreclose a property in Illinois?
Depending on the court schedule, it usually takes approximately 215 days to effectuate an uncontested foreclosure. This
process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files forbankruptcy. Property owners have a right to reinstate a defaulted mortgage within ninety (90) days of the personal
service of the foreclosure complaint. Property owners have thirty (30) days after the foreclosure sale is confirmed to
retain possession and occupancy of the property at the expiration of which they must vacate.
top
|
FREE 7-DAY TRIAL!
You're only seconds away from searching foreclosures FREE for 7 days with America's largest and most trusted database.
It's fast and easy!
|
Is there a right of redemption in Illinois?
Illinois does not have apost-foreclosure sale statutory right of redemption, which would allow a party whose property
has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs.
On residential properties, there is a seven (7) month right of redemption from either the time the foreclosure complaint
is filed or three (3) months form the time a final judgment of foreclosure is entered. A foreclosure sale cannot occur
until these time periods expire. Reinstatement and redemption rights can only be exercised once every five (5) years.
top
|
Are deficiency judgments permitted in Illinois?
Yes, adeficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the
loan amount that the underlying mortgage secures. This means that the borrower still owes the lender for the difference
between what the property sold for at auction and the amount of the original loan. Deficiency judgments are not permitted
in cases ofConsent Foreclosure or aDeed in lieu of foreclosure.
top
|
What statutes govern Illinois foreclosures?
The laws that govern Illinois foreclosures are found in 735 ILCS 5/Art XV. To view these statutes on the Web, you can visit:
http://www.ilga.gov/legislation/ilcs/ilcs4.asp
top
|
