How foreclosure works in Illinois

The notices you will receive in Illinois, in order

1. Summons and Complaint to Foreclose Mortgage

   Served on you after the lender files the case, which generally cannot happen until after the federal 120-day wait

   The complaint names you as a defendant and asks the court to order the home sold. You have 30 days after you are served to file a Mortgage Foreclosure Appearance and Answer with the circuit clerk. If you do not, the case can go ahead without you.

   735 ILCS 5/15-1504

2. Homeowner Notice (Important Information for Homeowners in Foreclosure)

   Attached to the summons in every residential case, in English and Spanish

   This one-page notice lists ten points, including your right to stay until a judge enters an eviction order, to reinstate within 90 days, to redeem, to get a payoff statement, and to ask the court for any surplus. It also names your current mortgage servicer in bold type so you know whom to call.

   735 ILCS 5/15-1504.5

3. Notice of foreclosure recorded against the property

   Recorded by the lender in the county where the home is located

   This recorded notice, often called a lis pendens, tells the public that a foreclosure case is pending. You do not have to respond to it, but anyone who checks the title, such as a buyer or a new lender, will see it.

   735 ILCS 5/15-1503

4. Order of Default and Judgment of Foreclosure

   Entered by the judge if the lender proves its case or you do not respond

   The judgment allows the home to be sold and must state the last date to redeem. If it was entered by default, the court's form notice, the Notice of Entry of Default and Judgment of Foreclosure, tells you that you may be able to file a Motion to Vacate and should act right away.

   735 ILCS 5/15-1506; Ill. S. Ct. R. 113

5. Notice of sale

   Published once a week for 3 weeks in a row; first notice no more than 45 days and last at least 7 days before the sale

   The notice gives the time and place of the sale, whether it is in person, online or both, the terms, the case number, and the name, address and phone of a person to contact about the property. If you filed an appearance and are not in default, a copy must also be sent to you.

   735 ILCS 5/15-1507(c)

6. Notice of the hearing to confirm the sale

   Mailed to you after the sale, even if you were held in default

   The buyer or lender files a motion asking the judge to confirm the sale. The mailed notice must tell you in bold capital letters that you have the right to remain in possession for 30 days after entry of an order of possession. This hearing is your chance to object to the sale.

   735 ILCS 5/15-1508(b), (b-5)

7. Order confirming the sale and notice of new owner

   At the confirmation hearing; the new owner's notice to occupants is due within 21 days after confirmation

   The order confirms the sale, can include a deficiency judgment, and gives the buyer possession starting 30 days later. The new owner must then give known occupants a written notice that control of the property has changed, and that notice must say it is not a notice to vacate.

   735 ILCS 5/15-1508(g), 15-1508.5

The legal steps in Illinois

1. You fall behind on payments

   Your servicer generally cannot file a foreclosure case until you are more than 120 days behind under federal rules. Use this time to call your servicer, apply for loss mitigation, and talk with a free HUD-approved housing counselor. Illinois used to require a separate 30 day grace period notice before filing, but that law was repealed in 2016.

   12 C.F.R. § 1024.41(f); 735 ILCS 5/15-1502.5 (repealed)

2. Complaint and summons

   The lender files a foreclosure complaint and has you served with a summons. For a home, a Homeowner Notice in English and Spanish must be attached, listing your rights. You have 30 days after you are served to file an Appearance and Answer with the court. If you do not, the case can go ahead without you.

   735 ILCS 5/15-1504.5

3. Reinstatement period and mediation

   For 90 days after you are served, you have the right to reinstate the loan by paying what is past due plus allowed costs. This is also the time to ask whether your court has a foreclosure mediation program and to keep working with your servicer on loss mitigation.

   735 ILCS 5/15-1602; Ill. S. Ct. R. 99.1

4. Judgment of foreclosure and redemption period

   If the lender proves its case, the judge enters a judgment of foreclosure, which must state the last date to redeem. For a home, you can redeem by paying off the full judgment amount until the later of 7 months after you were served or 3 months after the judgment. You can also sell or refinance during this time.

   735 ILCS 5/15-1506, 15-1603

5. Notice of sale and judicial sale

   After the reinstatement and redemption periods end, the home is sold. The notice of sale must be published once a week for 3 weeks in a row, with the first notice no more than 45 days before the sale and the last at least 7 days before. If you filed an appearance, the notice must also be sent to you.

   735 ILCS 5/15-1507

6. Hearing to confirm the sale

   The sale is not final until a judge confirms it. Notice of this hearing must be mailed to you even if you were found in default. The judge must confirm the sale unless proper notice was not given, the sale terms were unconscionable, the sale was fraudulent, or justice was otherwise not done. The order can include a deficiency judgment and deals with any surplus.

   735 ILCS 5/15-1508

7. Possession and eviction

   The order confirming the sale gives the buyer possession starting 30 days after the order is entered. Until a judge orders otherwise, the people lawfully living in the home have the right to stay. An eviction order can be enforced only against people named in the case.

   735 ILCS 5/15-1508(g), 15-1701

Common questions in Illinois