Navigating the Foreclosure Process in Illinois

 Posted on March 11, 2024 in Foreclosure

The foreclosure process can be confusing and overwhelming for homeowners facing financial hardship. An Illinois attorney focused on real estate and foreclosure law can provide some guidance on the steps in the foreclosure process and your options as a homeowner.

Understanding the Foreclosure Timeline

The foreclosure timeline lays out the sequence of events from initial default on your mortgage through to a foreclosure auction of your home. This process is governed by Illinois law and real estate regulations. Some important milestones are the following:

• Notice of default: The first step after you miss payments. The lender sends you written notice of intention to foreclose if you do not repay the owed amount. You typically have 30-90 days to respond before further action.
• Filing of foreclosure case: If the default is not cured, the lender can file a foreclosure case in court outlining the missed payments and requesting permission to auction the home.
• Judgment of foreclosure: If the court rules in favor of the lender, they will decide to allow the foreclosure and eventual sale to proceed.
• Auction sale date: The foreclosed property will be sold at a public auction. As a lienholder, the lender will commonly acquire the home with a credit bid.

This is a simplified overview of the sequence, which can take nine months to two years to complete in Illinois.

Avoiding Foreclosure Through Alternatives

It can be beneficial to explore alternatives to foreclosure whenever possible, given the major credit and financial consequences. The main options are the following:

• Loan modification: Adjust terms like interest rate to make payments affordable.
• Forbearance agreement: Temporarily reduced or suspended payments.
• Short sale: Sell the home yourself before the auction and pay back a portion of the mortgage balance.
• Deed instead of foreclosure: Voluntarily transfer ownership and move out without auction.

The viability and eligibility considerations of these alternatives are complex, so please reach out to discuss your unique situation.

Next Steps If You Are Facing Foreclosure

If you have fallen behind on mortgage payments and received notices from your lender, explore the pros and cons of alternatives like loan modifications versus proceeding with a potential foreclosure sale. This is not a simple decision, but meeting the challenge head-on with experienced legal representation can lead to the optimal path forward for you and your family.

Contact a North Chicago, IL Foreclosure Defense Lawyer

Losing your home is likely one of your worst fears. Thankfully, there are almost always options instead of facing foreclosure. A Gurnee, IL foreclosure defense attorney rated one of the top 100 National Trial Attorneys can help you explore possible alternatives. Call Newland & Newland, LLP at 847-549-0000 for a free consultation.