Foreclosure Process in Illinois

The following is meant to acquaint you with the process of foreclosure as it occurs in the state of Illinois.  This is general information only and MAY OR MAY NOT directly apply to your specific situation.  Nor is the information provided intended to be comprehensive but is simply an overview of the Illinois foreclosure timeline.

According to Realty Trac, ILLINOIS HAS THE 4^TH HIGHEST NUMBER OF FORECLOSURES IN THE NATION.

The good news is that Illinois is what is known as a JUDICIAL STATE.  Unlike non-judicial states, the lender must go to court and get a judge’s permission to foreclose on a homeowner.  This provides an opportunity to fight and STOP THE FORECLOSURE!

Usually after the third missed mortgage payment, the loan is sent to the lender's attorney for foreclosure. A foreclosure lawsuit is filed to end your mortgage and take away your house. The Foreclosure Complaint is filed in court and the summons is ready for service. Service is accomplished when the legal papers are delivered to the homeowner. If the homeowner cannot be located in person, they can be served by the publishing of a notice in the newspaper.

Shortsales Fall Short

Another route people will sometimes take when facing foreclosure is doing a “short sale”.  A short sale means that you sell your house for the current market value which is less than you owe on the house and you get your lender to agree to it and take the lesser amount. 

Often people facing foreclosure will consult a realtor, perhaps the very one who sold them the home they are living in, and the realtor will recommend a short sale.

Realtors usually recommend short sales for two reasons:

1)     That’s what they know;

2)     And they make a commission when they short sell your house!

However, what they don’t often say is that they are severe consequences to short selling your home:

Bankruptcy - Does It Really Stop Foreclosure?

One of the most common actions taken in an attempt to stop a foreclosure is the filing of bankruptcy.  Many attorneys recommend bankruptcy when facing foreclosure.  And while it’s true that a bankruptcy filing will stop an impending foreclosure, the halting of the foreclosure is OFTEN ONLY TEMPORARY.  

The result is that bankruptcy ends up often ONLY DELAYING FORECLOSURE rather than actually stopping it.

An Ugly Truth Banks Don't Want YOU to Know

The biggest reason that loan mods are virtually never granted is that the so called “lender” is actually only a servicer of the loan and not the true holder of the note.  We’re going to talk about this in more detail in a subsequent blog post but knowing that this is true in 80 to 90% of all mortgages (originated or refinanced from 2000 to 2009) can save homeowners a lot of heartache.

What we see so often is homeowners trusting in the “nice people” in the loan mod department who are “working hard” to push the loan mod through.  However, they just need more information or they lost what was already sent them or there are further questions that need answering, and so forth.  THERE ARE USUALLY DELAYING TACTICS ON THE PART OF THE BANK.

Loan Modification Sucks

Homeowners believe that their bank has their best interests at heart.  They believe the people in the loan mod department with the bank that tell them that their loan mod is “in process” and with just a little more information, the loan mod will be granted.

IT IS A LIE!!  THERE WILL MOST LIKELY BE NO LOAN MOD!!

Our experience and the experience of others in this field show that the VAST MAJORITY OF LOAN MODS ARE DENIED!

In Foreclosure? What Are Your Options?

You have found this blog because you are in foreclosure or you have received a notice of default from your lender. You are worried that you will lose your home. You have a heavy weight on your chest feeling you have failed financially to support your family. You feel terrible with the uncertainty of NOT knowing what will happen to you and your family when they foreclose on your home. You cannot even sleep because of the anxiety. You are losing not just your home but your physical health and even your emotional health too.

When you search online, the options sound confusing, overwhelming and you are not sure if they will help you at all. These are: