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Illinois provides lenders and homeowners with three common ways to approach a foreclosure: Judicial foreclosure, deed in lieu of foreclosure and consent foreclosure. These three methods offer both lenders and borrowers certain advantages, depending upon the unique circumstances of each individual case. What it means for borrowers in particular is that Illinois law tries to provide a way to resolve the debt without harming the borrower when at all possible. As with all legal matters, it is best to acquire an attorney before finalizing foreclosure documents, but the following sections can help homeowners know what to expect when and if foreclosure becomes a possibility.
As previously mentioned, most lenders and homeowners complete a foreclosure in one of three ways, and it is important to note at this point that Illinois law does not allow non-judicial foreclosures. Brief descriptions of each foreclosure methods are listed below.
Judicial Foreclosure: As one might expect, this type involves the judicial system. Lenders are responsible for notifying all involved parties not less than 30 days before the court renders a foreclosure judgement. If an Illinois court decides in favor of the lender and pushes the foreclosure through, the property in question may go up for sale but must remain in compliance with the terms outlined in its notice of sale. Borrowers will have no redemption rights once the property sale goes through.
Deed in Lieu of Foreclosure: Once an Illinois borrower goes into default on a mortgage, this type of foreclosure can be highly advantageous if the lender agrees to use this method. Quite simply, it entails the homeowner turning the property deed over to the lender in exchange for the mortgage to be terminated. This way the borrower terminates all interests in the property as well as ownership of the deed. Lenders do not always agree to this type of foreclosure, but when they do, they are no longer permitted to seek a deficiency judgement against the homeowner. This method benefits the homeowner by providing a simple way to terminate the mortgage quickly and effectively without having to undertake as many unpleasant tasks.
Consent Foreclosure: There are benefits for both the lender and the borrower with this type of foreclosure. In essence, an Illinois court satisfies the mortgage by turning absolute title over to the lender, who benefits by resolving the matter quickly. The homeowner benefits much in the same way as he or she would in a Deed in Lieu of Foreclosure process; by having the matter resolved as painlessly as possible. Afterwards, lenders may not seek a deficiency judgement and the borrower will have no rights of redemption.
For those who have a lot of questions regarding the Illinois foreclosure process, please see the following section. Here, Illinois residents will find some of the most common questions and their answers about foreclosure in this state.
As you can see, Illinois offers several options for foreclosing on a property. The best way for homeowners to proceed is to contact an attorney who can provide the best course of action going forward while making sure the borrowers rights have not been violated.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure and alternatives lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure and alternatives attorney to discuss your specific legal situation.