What Defenses Can I Bring in an Illinois Foreclosure Case?

 Posted on November 27, 2024 in Foreclosure

Illinois is a judicial foreclosure state, which means a lender must bring a lawsuit and obtain a court order to foreclose on a home. While this might seem like an overwhelming and daunting prospect, the upside is that the homeowner has his or her day in court. This allows the borrower to present a legal defense and potentially prevent foreclosure. The best way to successfully protect your home is to hire an experienced Illinois foreclosure defense lawyer who will evaluate your case and identify possible defenses against a foreclosure lawsuit.

What Defenses Can I Bring in a Foreclosure Case?

There are a few arguments homeowners can make that have the potential to ward off foreclosure. For example:

• Loan servicing errors: If you can show that the lender made significant errors in servicing your loan, it might be a solid defense against foreclosure. For example, the lender might have inaccurately applied payments, refused to accept valid payments, or imposed unreasonable fees.

• Procedural errors: Lenders must abide by a certain procedure prescribed by law when pursuing a foreclosure. For example, a lender must provide the homeowner with proper notice within a specific timeframe, give the homeowner information about foreclosure and loss mitigation options, and follow the foreclosure process in accordance with federal mortgage servicing laws. If a lender fails to comply with the procedure, it can have a harder time obtaining a foreclosure order.

• Predatory lending practices: Federal laws like the Truth in Lending Act are meant to prohibit lenders from engaging in deceptive and unfair lending practices. If you can show the court that the terms of your mortgage constitute predatory lending, it may be a valid defense.

Keep in mind that any defense will require proof, so speak with your attorney about what evidence to begin gathering.

How Does the Foreclosure Process Work in Illinois?

If you are facing judicial foreclosure, it is important to understand how the process works so you can properly build a defense. Here are the general steps that lead to a foreclosure:

• When a homeowner misses multiple mortgage payments, the lender sends a letter notifying the borrower that the loan is in default and that the lender may pursue foreclosure. The letter should include information about foreclosure and loan mitigation options the borrower can exercise to avoid a foreclosure lawsuit.

• If the homeowner remains in default and does not take any action, the lender may file a petition with the court to begin the foreclosure process.

• A summons and a copy of the complaint must be served to the homeowner.

• The homeowner has 30 days to respond to the complaint and make defensive arguments.

• If the court finds in favor of the lender, the judge will issue an order to sell the home.

• The home is then sold, usually at an auction overseen by the court. Illinois law provides the borrower with a redemption period that allows him or her to keep the property by paying the debt or negotiating repayments with the lender.

Contact a Lake Forest, IL Foreclosure Defense Attorney

Hiring the right Grayslake, IL foreclosure defense lawyer is the key to defending yourself effectively against foreclosure. At Newland & Newland, LLP, our highly skilled attorneys have decades of experience in real estate law and defending against foreclosure, and we will create a legal strategy to help you protect your home. Call 847-549-0000 now to get a free consultation today.