The Illinois foreclosure process is comprised of various steps taken by the court which transfers ownership of a property to a bank. This process starts when the property owner is unable to make loan payments, and it ends with the decision by the bank to take ownership of the property to recoup its money. If the property owner is able to pay back the loan then they may keep the property, otherwise, the bank will be transferred ownership.

The Illinois foreclosure process is comprised of various steps taken by the court which transfers ownership of a property to a bank. This process starts when the property owner is unable to make loan payments, and it ends with the decision by the bank to take ownership of the property to recoup its money. If the property owner is able to pay back the loan then they may keep the property, otherwise, the bank will be transferred ownership.

Time Period For The Illinois Foreclosure Process:

The Illinois foreclosure process generally takes between 210 and 270 days to complete. During this time, if the property owner fails to pay back the loan, the bank will take possession of the property.

The Foreclosure Process:

There are many different steps involved in the Illinois foreclosure process:

Foreclosure  Action:

This is the first step in the foreclosure process. In this stage the bank will give the property owner some time to pay off their loan. If for some reason the property owner is not able to pay back the loan, and can not come to some sort of arrangement with the bank the foreclosure process will proceed. While the bank is waiting on the property owner to either pay back the loan or for a different arrangement, the legal representation for the bank is gathering the title report about the property owner. This title report consists of the details on the property, any outstanding legal issues, and any other liens that may exist with other banks.

Foreclosure Complaint:

After the bank has waited for about 30 days, they send out a notice of default to the property owner. A foreclosure complaint is a legal document which informs the property owner that due to nonpayment of their loan with the bank, their property is being presented for foreclosure. The legal representation of the bank may also send a summons to the property owner. A summons is a court order, letting the property owner know a time and date when they can appear in court and discuss the case.

Court Hearing:

Seven days after the foreclosure complaint, it is submitted into the court system and hearing preparations are made. At this time, both the property owner and the bank can made their case heard in a legal setting. A Lis Pendens is also filed which prevents the property owner from selling their property during the foreclosure process. The property owner needs to respond to the foreclosure complaint within 30 days. If the property owner responds than the court will allow him to try and settle the matter privately with the bank. If the property owner fails to respond however, then the court will grant permission to the bank to either use or sell the property.

Redemption:

In order to remain the legal owner of the property, the property owner must pay back their loan within the time allotted by the courts. If they manage to pay back the loan, the court will release their property back to them. The redemption period is decided by the court. It can be as little as 30 days in some cases. This redemption period is the last chance the property owner has to save their property during the foreclosure process.

Selling The Property:

As mentioned before, if the property owner does not manage to pay back the loan on their property then the court will announce the date the property will be sold. The bank gets the right to sell the property in the way it sees fit to try and recover the loan amount on the property.

Things to Remember:

It doesn’t matter if you are the property owner or the bank, in either case you will need to keep the following things in mind:

  • Follow all legal requirements
  • Attempt to resolve the matter outside the courtroom as it saves time and money
  • Be sure to be prepared when you need to meet face to face
  • Make sure you have all the pertinent documents handy if it does need to go to court
  • Make sure if you have a scheduled court date you keep it and are on time