How Foreclosure Works in Illinois

Judicial. Mortgages in Illinois are foreclosed through a court case under the Illinois Mortgage Foreclosure Law. The owner's interest is ended by a court-ordered judicial sale after a judgment of foreclosure, and only once the court confirms the sale.

In every residential foreclosure, the lender must attach a "Homeowner Notice" (in English and Spanish, at least 12-point type) to the summons. It tells homeowners they can stay in the home until a judge enters an eviction order, they own the home until the court rules otherwise, they can reinstate within 90 days after receiving the summons, they can sell, refinance or pay off during the redemption period, they can claim any surplus, and they can get a free first payoff statement within 10 business days of a written request. Before the judicial sale, public notice must be published once a week for at least 3 consecutive calendar weeks, with the first notice no more than 45 days and the last no less than 7 days before the sale; parties who have appeared must also be notified.

The homeowner has 90 days after being served (or otherwise submitting to the court) to reinstate. For residential property, the redemption period ends on the later of 7 months after all mortgagors are served or 3 months after the foreclosure judgment. The judicial sale is then noticed and held, and must be confirmed by the court. Notice of sale may be given before the reinstatement or redemption period ends.

Yes. A homeowner may reinstate the mortgage by curing all existing defaults (other than principal that would not be due without acceleration) and paying the costs and expenses the mortgage requires, within 90 days after all mortgagors are served with summons (or by publication) or otherwise submit to the court's jurisdiction. The foreclosure is then dismissed. If the court makes a written finding that the homeowner reinstated, the right is not available again under the same mortgage for five years.