The Illinois foreclosure laws allows lenders more than one way to foreclose distressed property. These options on a mortgage in default are consent foreclosure, judicial foreclosures and deed-in-lieu of foreclosures. Illinois foreclosure laws allow lenders to file deficiency judgments but does not allow borrowers the right of redemption. Foreclosure proceedings under the Illinois Foreclosure Law can take as long as six to seven months to reach completion. Unlike many other states in the US, Illinois does not allow the inclusion of a power of sale clause in non judicial foreclosure proceedings. Filing a lawsuit Notice of Foreclosure Judgment is essential to initiate foreclosure proceedings in Illinois.
Mandatory notice according to Illinois foreclosure laws
The Illinois Foreclosure Law expressly states that all the persons mentioned in the property agreement should be served with the notice of foreclosure at least a month before the foreclosure lawsuit is filed. A notice served for this purpose should contain relevant details like case number, name of the court, a legal description of the property, identification of the mortgage in default and the like.
Besides being served to the persons concerned, the notice of sale should be published in a widely circulated local newspaper. The regulations even specify that the first notice should appear no more than 45 days before the foreclosure sale and the last notice should be seen no later than 7 days before the sale. The notice should appear for three continuous weeks, once every week.
The county sheriff or any judge from the county is empowered to conduct a foreclosure sale in the State of Illinois. The sheriff or judge is authorized to issue a receipt of sale to the purchaser of the foreclosure property. A Certificate of Sale is also issued to the purchaser of the foreclosed property. This certificate should contain details like date and place of sale, details of transaction and the like.
The State of Illinois Foreclosure Law gives borrowers another option known as the deed in-lieu of foreclosure. Under this option the borrower gives up the title to the property of his own volition. This act helps the borrower avoid the foreclosure proceedings. Taking this option proves beneficial for borrowers.
The other option provided by the Illinois Foreclosure Law is the consent foreclosure. Exercising this option enables the lender to get a clear title of the distressed property. Consent foreclosure also leaves the property title free of any claims from the borrower or co-borrowers if any.
