Illinois Foreclosure Act
The state of Illinois governs how foreclosures are handled within its boundaries. Illinois does not have a general "foreclosure act," rather the state has a complete set of laws concerning mortgage foreclosure. Civil Procedure Number 735 of the Illinois Complied Statutes, Article XV defines the procedures and rules concerning the foreclosure process. The law is composed of various "public acts" that have been transformed into law.
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Lien Theory
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Illinois operates as a lien theory state. Under this theory when a mortgage loan is taken out against a property, a lien is placed on the property as well. This lien remains on the property and on public record until the loan balance is paid in full. Lien theory states also require foreclosure proceedings to be handled through the court system. These types of foreclosures are known as judicial foreclosures. Judicial foreclosures can cost the mortgage lender time and money to complete.
Pre-foreclosure
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Borrowers can fall behind on mortgage payments for a variety of reasons, job loss, medical bills and other unexpected circumstances. Usually, after 60 to 90 days of missed payments the account will be classified as in default. The lender may send a warning to the borrowers to notify them of the status of their account. If the borrower does not make an attempt to repay the past-due amounts or arrange something with the lender, the foreclosure process can begin.
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Filing Suit
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In Illinois, mortgage lenders must begin the foreclosure process by filing a complaint to foreclose mortgage with the court system in the county where the property is located. The notice must be personally served to the borrowers after it has been filed. Once served, the borrowers have 30 days to respond. If the borrowers attempt to fight the foreclosure, a trail may take place. If they do not respond to the foreclosure complaint, the lender will request the court to file a judgment in its favor. After this, the borrower has a 90-day period to redeem the property and stop the foreclosure sale. This occurs if the borrower pays the lender the amount requested in the judgment.
Sheriff Sale
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If the borrower cannot make the payment to the lender, the foreclosure sale can proceed. The county sheriff will advertise the sale information in a local newspaper for about three weeks leading up to the sale date. The sale proceeds as an auction where the lender sets the starting bid amount. The property is sold to the highest bidder. The sheriff submits a certificate of sale to the court to approve within 10 days of the sale. Once approved, the winning bidder will receive a sheriff's deed granting them property ownership.
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