Illinois Foreclosure Proceedings – When Must the Homeowner Move Out?

 Posted on March 30, 2012 in Foreclosure

In Illinois, if a homeowner misses a mortgage payment, their loan then goes into default. Although just one missed payment violates the mortgage contract. most lenders won't start foreclosure proceedings until a borrower is at least three payments behind. However, a Chicago foreclosure doesn't mean that the homeowner must immediately move out. In Illinois, the borrower is considered the lawful occupant of the property and is allowed to live in the property until a judgment of possession is entered, which takes a minimum of 9 months.

Illinois' Homeowner's Rights Act, requires that lenders take certain steps before filing for foreclosure proceedings. When a homeowner is at least 30 days behind on a mortgage payment, the lender must notify them that they have 30 days to seek assistance. Obtaining that assistance allows the borrower another 30 days to work out a payment plan.

If the borrower fails to do either of these things, the lender may begin foreclosure proceedings. The lender will send the borrower notification of its intention to foreclose and then file a lawsuit, detailing the reasons for the foreclosure request.

The homeowner then has 90 days to bring the mortgage current (called reinstatement). The borrower also has the right to sell the home, refinance or pay off the loan during the seven months following receipt of the summons (redemption period). After the required time has elapsed, with neither reinstatement nor redemption of the mortgage, the lender may sell the home after taking specific steps to notify the homeowner. Once the sale occurs, the lender files a petition for possession with the court, and when the court grants this, the foreclosed home must be vacated.

Chicago homeowners who are facing a potential foreclosure have rights and options, and should seek out professional advice from a qualified Libertyville foreclosure defense lawyer. Although there are legitimate defenses to foreclosure, they should also be leery of any solicitations for what may appear to be quick and easy solutions to stopping a foreclosure. There are numerous foreclosure scams making the rounds, and before taking any drastic steps to stop foreclosure in Illinois, contact an experienced Libertyville, Illinois, foreclosure defense attorney.

(Image courtesy of graur razvan ionut)