What Are My Rights During the Foreclosure Process in Illinois?

 Posted on October 09, 2024 in Foreclosure

When a property owner has failed to keep up mortgage payments, the lender may initiate a foreclosure process to reclaim the real estate. This can be an overwhelming and even humiliating experience for a homeowner, who is typically already in financial distress. However, there are laws and regulations concerning foreclosures that give homeowners certain rights during the process. This article will discuss some of those rights, but the best resource for your legal rights in foreclosure is an experienced Illinois real estate attorney.

How Does the Foreclosure Process Work in Illinois?

If you miss a mortgage payment, the lender will likely contact you about the missed payment and you may face late fees. After 90 days, the lender will notify you that your mortgage is in default. After several missed payments, the lender may notify you that the loan is being "accelerated," which means the lender is exercising its right to demand the entire outstanding loan amount by a certain date. If you are still in default after 120 days, the lender may then file a lawsuit to begin foreclosure and serve you with a summons along with a description of your rights and ways to avoid foreclosure.

What Are My Rights During the Foreclosure Process?

Due to state and federal laws, foreclosure is usually not a simple or quick process. Lenders must abide by certain rules and borrowers have certain rights. For example:

• You have the right to a legal defense. Illinois is a judicial foreclosure state. This means lenders must go through the courts to foreclose a property by obtaining a judgment of foreclosure from a judge. You have the right to defend against that foreclosure with the help of an attorney.
• You have the right to proper notice. In many cases, lenders are required to notify borrowers of an impending foreclosure by sending a breach letter. This tells the borrower that the mortgage is in default, advises on ways to resolve the default, and warns that continued default will result in foreclosure. 
• You have the right to apply for loss mitigation. Loss mitigation is a general term that refers to the borrower and the lender working together to figure out ways to avoid foreclosure. This may involve legal options like repayment plans, short sales, and more. A borrower can apply to a lender for loss mitigation to try to avoid foreclosure.
• You have the right to reinstatement. Once you are served with the foreclosure summons, you have 90 days to pay off the total amount due along with any late fees and avoid foreclosure. This is called reinstating the loan.
• You have the right to redemption. Borrowers have the right to redemption, which means they have seven months from the date of the summons to pay back the outstanding loan in full and avoid foreclosure. This right also extends to three months after the court issues a judgment of foreclosure.

Contact a Lake Forest, IL Foreclosure Defense Attorney

Defending against foreclosure can be a complex undertaking which is best done by a Grayslake, IL foreclosure defense lawyer. At Newland & Newland, LLP, we are committed to protecting your rights during the foreclosure process and we will use our extensive legal experience to help you achieve the best outcome possible. Schedule a free consultation by calling 847-549-0000 today.