At Adam Diamond Law, we help the homeowners in Northern Illinois work through all aspects of their real estate issues — including dreaded foreclosures.
Unfortunately, foreclosure can be even further complicated by the question of whether you are in a judicial or non-judicial state, and, predictably, different steps are involved depending on the answer.
In this blog, we take a look at what a judicial foreclosure is, and whether it will be relevant to you in Illinois.
Foreclosure Basics in Illinois
A foreclosure occurs when a lender attempts to recover a house from the borrower due to missed payments. Tragically, foreclosures have become more and more common due to the Covid- 19 pandemic.
Is Illinois A Judicial Foreclosure State?
Illinois is a judicial foreclosure state. This means that Illinois handles foreclosures within the court system, and lenders must sue deficient borrowers to foreclose on delinquent loans.
In a judicial foreclosure, mortgage companies and lenders have specific legal steps to take with the courts. They can start this process after 1 delinquent payment. After that, they will have to the following steps:
- File a lawsuit in the county where the property is located
- File a petition for foreclosure (a complaint) stating that the bank has the right to foreclose on the property
- Attempt to serve a summons on the borrower one of two ways—personal service to the borrower or anyone in the household over 13, or by publication
What Happens After the Borrower is Alerted to the Judicial Foreclosure?
- The homeowner usually has 30 days to file a response after being served with a summons. If no response is filed, the mortgage company can proceed with the foreclosure process.
- If no response is filed, the lender will likely proceed with the foreclosure process and request a judgment.
- After a judgment is made, a judicial sale can be scheduled.
- The borrower usually should be notified at least 30 days before the judicial sale occurs. After the sale takes place, the mortgage company, or bank, will have to file a motion to confirm the sale.
- Once the sale is approved, if the home is occupied, there will be a 30 day period before the new owner takes over the property.
Contact the Office of Adam Diamond Law for More Information
The idea of foreclosure is terrifying to any homeowner — regardless of whether the process is judicial or non-judicial. Our team at Adam Diamond Law is here to help you regarding your unique situation. Contact us today to schedule your first consultation.