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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
No |
| Security Instruments |
Mortgage |
| Right of Redemption |
Yes, limited |
| Deficiency Judgments |
Varies |
| Time Frame |
Usually 210 days |
Judicial foreclosure in Illinois begins with the filing of a suit to obtain a judgment of foreclosure; and the filing of a lis pendens, which is a legal and public notice of intent to foreclose. The timing is at the lender’s discretion after a missed payment, but is usually 3-4 months after the first missed payment.
If the court issues a judgment of foreclosure the borrower has 7 months from the date of service (or three months from the date the judgment is issued, whichever is later) in which to redeem the property by paying the amount due. Because the borrower may offer defenses to the suit for a judgment, 6 or 7 months may pass before the judgment is issued. If the borrower fails to redeem, a notice of sale is issued.
The sale may be conducted by the sheriff or by any judge in the subject county according to the terms and conditions contained in the notice of sale; provided that such terms and conditions meet minimum statutory standards.
Investors must deposit 10% of their bid amount in cash, and must pay the balance within 24 hours. The foreclosed owner has no right of redemption following the sale.
Consent foreclosure is occasionally used in Illinois. It involves the court issuing a judgment of foreclosure and giving absolute title to the property to the lender with the lender and borrower’s consent. There is no sale. In this case the defaulted mortgage is deemed satisfied and the lender may not sue for any deficiency, nor has the borrower any right of redemption.
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