Foreclosure is not something anyone plans on having to go through. During foreclosure, a lender or mortgage company attempts to recover a home from the borrower after they cannot meet their payments.
Unfortunately, this unthinkable circumstance is happening more and more frequently due to the Covid- 19 pandemic. Getting legal advice from an experienced foreclosure defense lawyer as early in the process as possible is crucial.
Many homeowners have little idea how foreclosure works, let alone the steps they need to take leading up to foreclosure, what happens during and after, and how long this process can take.
At Adam Diamond Law, we help McHenry and Lake County, Illinois homeowners work through all aspects of their real estate — including foreclosures. Continue reading to learn more about the timeline of foreclosure and how to get in touch with a real estate attorney if you’re facing this complicated situation.
Note: If you do not live in your home or it has multiple units, the foreclosure process in Illinois may be different because the property may not be considered residential or your primary residence. If you are not sure if your home is considered your primary residence, it is always best to consult with a local real estate attorney to make sure you understand your rights.
Pre- Foreclosure (for Your Primary Residence)
Several things need to occur to trigger the start of a foreclosure.
Here’s what happens first:
- The first thing to note is that if you miss your payment, you may have up to 15 days before it is even considered a missing payment. This is called a grace period. Most home mortgages have one.
- After missing the first payment, you are usually charged a late fee and the loan is regarded as delinquent.
- If you remain delinquent (not being able to pay) after your grace period, then the mortgage company can stop accepting payments and declare a default. This is at least 30 days after you miss a payment and many times it is even longer.
- However, the mortgage company cannot start the foreclosure process until they send you a formal notice that you are in default, meaning you didn’t make the payment as agreed. This is usually called a default notice.
- If you don’t pay the amount you are behind on your mortgage (your missed payments, interest and penalties) within the time period stated in the default notice, your lender can start the court part of the foreclosure process.
If possible, during this time, you should try to work something out with your lender.
Foreclosure (the Court Part)
The court part of the foreclosure process begins after your lender sends you a default notice and you are not able to catch up on your mortgage within the time period required by the notice. At this time, you have two important legal rights Illinois:
- Reinstatement before sale. Reinstatement of your loan is bringing it current by paying all missed payments and outstanding late fees. Many borrowers can pursue reinstatement up to 90 days after they have been served with a summons.
- Redemption period. The redemption period is the time period for your legal right to pay off the entire loan. In most cases, this period expires three months from the date of the judgment of foreclosure.
If you cannot pay back the loan within the redemption period or through reinstatement, a foreclosure auction can occur. Notice of this sale must be published in a locally circulated newspaper no more than 45 days before the sale and must be published weekly for at least three consecutive weeks.
What to Do if You are Facing Foreclosure
In addition to the pain and confusion of going through a foreclosure, all of the legal paperwork and jargon you will face can add more stress to the situation. However, with the help of an experienced real estate firm such as Adam Diamond Law you can determine what your best options are for keeping your home.
Adam Diamond Law is here to provide you with helpful guidance regarding your unique situation and to help you navigate the process.
Contact the Office of Adam Diamond Law for More Information
At Adam Diamond Law, nothing is more critical for us than helping you to navigate a foreclosure. That’s why we work hard and take the time to understand your unique situation. Contact us today at 773-217-9623, so we can get started working together.