Foreclosure process in Illinois: timeline and redemption

Judicial foreclosure: how it works

In Illinois the lender (the mortgagee) must sue in court. Nothing is sold until a judge enters a judgment of foreclosure and the redemption period has run (735 ILCS 5/15-1507). Federal rules add a first gate: a servicer may not make the first foreclosure notice or filing until the loan is more than 120 days delinquent, unless the foreclosure rests on a due-on-sale violation or the servicer is joining another lienholder’s case (12 CFR 1024.41(f)).

Every residential foreclosure summons must carry a Homeowner Notice in English and Spanish. It says, among other things, that you keep owning the home until the court rules otherwise, that lawful occupants may stay until a judge enters an eviction order, and that you may petition for any surplus after a sale (735 ILCS 5/15-1504.5).

Timeline step by step

Right of redemption and reinstatement

Reinstatement means paying what you missed, plus costs the mortgage requires, without the accelerated balance. You must do it within 90 days of service. If you reinstate, you cannot use that right again under the same mortgage for five years from the dismissal (735 ILCS 5/15-1602).

Redemption means paying the whole judgment amount: principal, interest, court-approved costs and fees, and per diem interest from the judgment date. You must give written notice of intent to redeem to the lender’s attorney at least 15 days (not counting Saturdays, Sundays or court holidays) before the date you pick (735 ILCS 5/15-1603(d)-(e)). Courts cannot extend the period by merely starting a new legal proceeding (15-1603(c)).

Example. Suppose you are served on March 1 and the judge enters judgment on May 15. Seven months from service is October 1. Three months from judgment is August 15. The later date, October 1, ends your redemption period.

While the sale is pending, a residential mortgagor can be asked to pay monthly, from the end of redemption through the 30th day after confirmation, the lesser of interest at the contract rate or fair rental value, unless the court finds good cause (15-1701(c)).

Deficiency judgments and surplus

The foreclosure does not end the lender’s right to seek a personal judgment for a deficiency (735 ILCS 5/15-1511). The confirmation order may provide for one (15-1508(b)). If the lender waives a deficiency, redemption can be shortened as shown above. If the sale brings more than the debt and costs, the surplus is held by the person who conducted the sale until the court orders otherwise (15-1512).

Help for homeowners in default

• Ask for a payoff statement. A mortgagor can demand one in writing; the lender must deliver it within 10 business days, and the first is free per the Homeowner Notice (15-1505.5, 15-1504.5).
• Cook County Mortgage Foreclosure Mediation Program. If you were served a summons in Cook County, the Circuit Court offers free housing counseling and legal help through a toll-free helpline, (855) 452-2637. Homeowners not yet served are referred to Cook County Legal Aid for Housing and Debt (Circuit Court of Cook County). See our Chicago page for local context.
• Free counseling statewide. The Illinois Housing Development Authority says foreclosure prevention counseling is free and that you should never have to pay for foreclosure assistance. It warns against anyone who asks for a fee or pressures you to sign over your deed.
• Federal loss mitigation. If a servicer receives a complete loss mitigation application more than 37 days before a sale, it must evaluate the options and tell you its decision in writing within 30 days (12 CFR 1024.41(c)).
• Service members. A mortgagor recently deployed to a combat posting can ask for a 90-day stay (735 ILCS 5/15-1501.5).

Buying a foreclosed home later? Read seller disclosure in Illinois for the exemption on foreclosure sales.