The entire process in Illinois takes, on average, from the filing of the complaint to the eviction by the sheriff, nine months.
Judicial Foreclosure. Except as provided in subsection (d) of Section 15‑1501, the interest in the mortgaged real estate of (i) all persons made a party in such foreclosure and (ii) all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502, shall be terminated by the judicial sale of the real estate, pursuant to a judgment of foreclosure, provided the sale is confirmed
Illinois Foreclosure Process
1. File is referred to an Attorney - Mortgage Company contracts with Foreclosure Attorney in Illinois, the mortgage company and the attorney typically have a computer system that is linked in order to refer a file to the Illinois Foreclosure Law attorney.
2. File Received by Attorney - Once the file is received by an attorney they tack on their fees and they begin their process of contacting courts and following Illinois Foreclosure Law protocall.
3. Title Report Received - Also known as title search. The analysis and written report on current status to real property, this includes the names of the title holders, how title is held (joint tenants, right of survivorship etc.), the property description, tax ID, encumbrances (liens, judgments, mortgages, deeds of trust), and property taxes due or paid. The entire history of the title is called an abstract and holds vital information about chain of title. A title report is prepared by a n attorney, title company, an escrow company, or an abstractor, according to local practice. The attorney uses the information to determine who to serve and the current status of the property.
4. Complaint Filed - Notice of Foreclosure. A notice of foreclosure, whether the foreclosure is initiated by complaint or counterclaim, made in accordance with this Section and recorded in the county in which the mortgaged real estate is located shall be constructive notice of the pendency of the foreclosure to every person claiming an interest in or lien on the mortgaged real estate, whose interest or lien has not been recorded prior to the recording of such notice of foreclosure. Such notice of foreclosure must be executed by any party or any party's attorney and shall include (i) the names of all plaintiffs and the case number, (ii) the court in which the action was brought, (iii) the names of title holders of record, (iv) a legal description of the real estate sufficient to identify it with reasonable certainty, (v) a common address or description of the location of the real estate and (vi) identification of the mortgage sought to be foreclosed. An incorrect common address or description of the location, or an immaterial error in the identification of a plaintiff or title holder of record, shall not invalidate the lis pendens effect of the notice under this Section.
5. Service - Service on the State of Illinois. When making the State of Illinois a party to a foreclosure, summons may be served by sending, by registered or certified mail, a copy of the summons and the complaint to the Attorney General. The complaint shall set forth with particularity the nature of the interest or lien of the State of Illinois. If such interest or lien appears in a recorded instrument, the complaint must state the document number of the instrument and the office wherein it was recorded.
6. Judgment Entered - No Objection. In a foreclosure, the court shall enter a judgment satisfying the mortgage indebtedness by vesting absolute title to the mortgaged real estate in the mortgagee free and clear of all claims, liens (except liens of the United States of America which cannot be foreclosed without judicial sale) and interest of the mortgagor, including all rights of reinstatement and redemption, and of all rights of all other persons made parties in the foreclosure whose interests are subordinate to that of the mortgagee and all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502 if at any time before sale: (1) the mortgagee offers, in connection with such a judgment, to waive any and all rights to a personal judgment for deficiency against the mortgagor and against all other persons liable for the indebtedness or other obligations secured by the mortgage; (2) such offer is made either in the foreclosure complaint or by motion upon notice to all parties not in default; (3) all mortgagors who then have an interest in the mortgaged real estate, by answer to the complaint, response to the motion or stipulation filed with the court expressly consent to the entry of such judgment; (4) no other party, by answer or by response to the motion or stipulation, within the time allowed for such answer or response, objects to the entry of such judgment; and (5) upon notice to all parties who have not previously been found in default for failure to appear, answer or otherwise plead. (b) Objection. If any party other than a mortgagor who then has an interest in the mortgaged real estate objects to the entry of such judgment by consent, the court, after hearing, shall enter an order providing either: (1) that for good cause shown, the judgment by consent shall not be allowed; or (2) that, good cause not having been shown by the objecting party and the objecting party not having agreed to pay the amount required to redeem in accordance with subsection (d) of Section 15‑1603, title to the mortgaged real estate be vested in the mortgagee as requested by the mortgagee and consented to by the mortgagor
Judgment Entered - A judgment is entered against homeowner, and interested parties noted on the title search, who have failed to represent or defend against the foreclosure suit brought by the mortgage company. If a homeowner fails to file a plea or answer to defend the property the judgment is entered
by the attorney and mortgage company.
Presale Redemption - because the foreclosure action involves a monetary default in the case of a foreclosure involving a monetary default, the mortgagor can reinstate by paying the entire amount of principal and interest and corporate advances that are due and payable to bring mortgage current prior to foreclosure.
7. Sale Scheduled - Date, time and location of foreclosure sale. Typically the mortgage company knows at least 30 days in advance of the scheduled foreclosure sale
8. Final Title Clear - the preliminary title report ran has a gap period that is taken to current to make sure no additional liens and judgments were incurred and recorded during the foreclosure process.
9. Sale Held - Opening bid Lender Acquire Property successful third party bid,
What happens to homeowner: An order of possession authorizing the removal of a person from possession of the mortgaged real estate shall be entered and enforced only against those persons personally named as individuals in the complaint or the petition under subsection (h) of Section 15‑1701 and in the order of possession and shall not be entered and enforced against any person who is only generically described as an unknown owner or nonrecord claimant or by another generic designation in the complaint.
Illinois Foreclosure Information Provided by Illinois General Assembly
CIVIL PROCEDURE
(735 ILCS 5/) Code of Civil Procedure.
(735 ILCS 5/Art. XV heading)
ARTICLE XV
MORTGAGE FORECLOSURE
(735 ILCS 5/Art. XV Pt. 11 heading)
Part 11. General Provisions
(735 ILCS 5/15‑1101) (from Ch. 110, par. 15‑1101)
Sec. 15‑1101. Title. This Article shall be known, and may be cited, as the Illinois Mortgage Foreclosure Law.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1102) (from Ch. 110, par. 15‑1102)
Sec. 15‑1102. Enforcement. The Court has full power to enforce any order entered pursuant to this Article by contempt process or by such other order as may be appropriate.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1103) (from Ch. 110, par. 15‑1103)
Sec. 15‑1103. Jurisdiction. The authority of the court continues during the entire pendency of the foreclosure and until disposition of all matters arising out of the foreclosure.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1104) (from Ch. 110, par. 15‑1104)
Sec. 15‑1104. Wrongful Inducement of Abandonment. Any person who willfully misrepresents to the Court any fact resulting in a finding of abandonment of mortgaged real estate in connection with subsection (b) of Section 15‑1603 or subsection (d) of Section 15‑1706 of this Article or who threatens to injure the person or property of occupants of mortgaged real estate, or who knowingly gives such occupants false and misleading information, or who harasses or intimidates such occupants, with the intent of inducing such occupants to abandon the mortgaged premises, in order to obtain a finding of abandonment under subsection (b) of Section 15‑1603 or subsection (d) of Section 15‑1706 of this Article, shall be guilty of a Class B misdemeanor.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1105) (from Ch. 110, par. 15‑1105)
Sec. 15‑1105. Interpretation. (a) "May." The word "may" as used in this Article means permissive and not mandatory.
(b) "Shall." The word "shall" as used in this Article means mandatory and not permissive.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1106) (from Ch. 110, par. 15‑1106)
Sec. 15‑1106. Applicability of Article. (a) Exclusive Procedure. From and after the effective date of this amendatory Act of 1986, the following shall be foreclosed in a foreclosure pursuant to this Article:
(1) any mortgage created prior to, on or after the effective date of this amendatory Act of 1986;
(2) any real estate installment contract for residential real estate entered into on or after the effective date of this amendatory Act of 1986 and under which (i) the purchase price is to be paid in installments over a period in excess of five years and (ii) the amount unpaid under the terms of the contract at the time of the filing of the foreclosure complaint, including principal and due and unpaid interest, at the rate prior to default, is less than 80% of the original purchase price of the real estate as stated in the contract;
(3) any collateral assignment of beneficial interest made on or after the effective date of this amendatory Act of 1986 (i) which is made with respect to a land trust which was created contemporaneously with the collateral assignment of beneficial interest, (ii) which is made pursuant to a requirement of the holder of the obligation to secure the payment of money or performance of other obligations and (iii) as to which the security agreement or other writing creating the collateral assignment permits the real estate which is the subject of the land trust to be sold to satisfy the obligations.
(b) Uniform Commercial Code. A secured party, as defined in Article 9 of the Uniform Commercial Code, may at its election enforce its security interest in a foreclosure under this Article if its security interest was created on or after the effective date of this amendatory Act of 1986 and is created by (i) a collateral assignment of beneficial interest in a land trust or (ii) an assignment for security of a buyer's interest in a real estate installment contract. Such election shall be made by filing a complaint stating that it is brought under this Article, in which event the provisions of this Article shall be exclusive in such foreclosure.
(c) Real Estate Installment Contracts. A contract seller may at its election enforce in a foreclosure under this Article any real estate installment contract entered into on or after the effective date of this Amendatory Act of 1986 and not required to be foreclosed under this Article. Such election shall be made by filing a complaint stating that it is brought under this Article, in which event the provisions of this Article shall be exclusive in such foreclosure. A contract seller must enforce its contract under this Article if the real estate installment contract is one described in paragraph (2) of subsection (a) of Section 15‑1106.
(d) Effect of Election. An election made pursuant to subsection (b) or (c) of Section 15‑1106 shall be binding only in the foreclosure and shall be void if the foreclosure is terminated prior to entry of judgment.
(e) Supplementary General Principles of Law. General principles of law and equity, such as those relating to capacity to contract, principal and agent, marshalling of assets, priority, subrogation, estoppel, fraud, misrepresentations, duress, collusion, mistake, bankruptcy or other validating or invalidating cause, supplement this Article unless displaced by a particular provision of it. Section 9‑110 of the Code of Civil Procedure shall not be applicable to any real estate installment contract which is foreclosed under this Article.
(f) Pending Actions. A complaint to foreclose a mortgage filed before July 1, 1987, and all proceedings and third party actions in connection therewith, shall be adjudicated pursuant to the Illinois statutes and applicable law in effect immediately prior to July 1, 1987. Such statutes shall remain in effect with respect to such complaint, proceedings and third party actions notwithstanding the amendment or repeal of such statutes on or after July 1, 1987.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1107) (from Ch. 110, par. 15‑1107)
Sec. 15‑1107. Mode of Procedure. (a) Other Statutes. Except as otherwise provided in this Article, the mode of procedure, including the manner of service of pleadings and other papers and service by publication, shall be in accordance with the provisions of Article II of the Illinois Code of Civil Procedure and any other statutes of this State which are from time to time applicable, and with Illinois Supreme Court Rules applicable to actions generally or otherwise applicable. If a mortgage lien is being foreclosed under this Article and one or more non‑mortgage liens or encumbrances is being foreclosed or enforced in the same proceedings, then, regardless of the respective priorities of the various liens or encumbrances, the procedures and all other provisions of this Article shall govern such proceedings, and any inconsistent statutory provisions shall not be applicable. Without limiting the foregoing, any provision of Article XII or any other Article of the Code of Civil Procedure shall apply unless inconsistent with this Article and, in case of such inconsistency, shall not be applicable to actions under this Article.
(b) Mechanics' Liens. Mechanics' liens shall be enforced as provided in the Mechanics' Lien Act; provided, however, that any mechanics' lien claimant may assert such lien in a foreclosure under this Article, may intervene in such foreclosure in accordance with this Article and may be made a party in such foreclosure.
(c) Instruments Deemed a Mortgage. For the purpose of proceeding under this Article, any instrument described in paragraph (2) or (3) of subsection (a) of Section 15‑1106, or in subsection (b) or (c) of Section 15‑1106 which is foreclosed under this Article shall be deemed a mortgage. For such purpose, the real estate installment contract purchaser, the assignor of the beneficial interest in the land trust and the debtor, as appropriate, shall be deemed the mortgagor, and the real estate installment contract seller, the assignee of the beneficial interest in the land trust and the secured party, as appropriate, shall be deemed the mortgagee.
(Source: P.A. 85‑907.)
(735 ILCS 5/Art. XV Pt. 12 heading)
Part 12. Definitions
(735 ILCS 5/15‑1201) (from Ch. 110, par. 15‑1201)
Sec. 15‑1201. Agricultural Real Estate. "Agricultural real estate" means real estate which is used primarily (i) for the growing and harvesting of crops, (ii) for the feeding, breeding and management of livestock, (iii) for dairying, or (iv) for any other agricultural or horticultural use or combination thereof, including without limitation, aquaculture, silvaculture and any other activities customarily engaged in by persons engaged in the business of farming.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1202) (from Ch. 110, par. 15‑1202)
Sec. 15‑1202. Collateral Assignment of Beneficial Interest. "Collateral assignment of beneficial interest" means any pledge or assignment of the beneficial interest in a land trust to any person to secure a debt or other obligation.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1203) (from Ch. 110, par. 15‑1203)
Sec. 15‑1203. Foreclosure. "Foreclosure" means an action commenced under this Article and "to foreclose" means to terminate legal and equitable interests in real estate pursuant to a foreclosure.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1204) (from Ch. 110, par. 15‑1204)
Sec. 15‑1204. Guarantor. "Guarantor" means any person who has undertaken to pay any indebtedness or perform any obligation of a mortgagor under a mortgage or of any other person who owes payment or the performance of other obligations secured by the mortgage, which undertaking is made by a guaranty or surety agreement of any kind.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1205) (from Ch. 110, par. 15‑1205)
Sec. 15‑1205. Land Trust. "Land trust" means any trust arrangement under which the legal and equitable title to real estate is held by a trustee, the interest of the beneficiary of the trust is personal property and the beneficiary or any person designated in writing by the beneficiary has (i) the exclusive power to direct or control the trustee in dealing with the title to the trust property, (ii) the exclusive control of the management, operation, renting and selling of the trust property and (iii) the exclusive right to the earnings, avails and proceeds of the trust property.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1206) (from Ch. 110, par. 15‑1206)
Sec. 15‑1206. Mechanics' Lien. "Mechanics' lien" or "mechanics' lien claim" means a lien or claim arising under the Mechanics' Lien Act.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1207) (from Ch. 110, par. 15‑1207)
Sec. 15‑1207. Mortgage. "Mortgage" means any consensual lien created by a written instrument which grants or retains an interest in real estate to secure a debt or other obligation. The term "mortgage" includes, without limitation:
(a) mortgages securing "reverse mortgage" loans as authorized by subsection (a) of Section 5 of the Illinois Banking Act;
(b) mortgages securing "revolving credit" loans as authorized by subsection (c) of Section 5 of the Illinois Banking Act, Section 1‑6b of the Illinois Savings and Loan Act and Section 46 of the Illinois Credit Union Act;
(c) every deed conveying real estate, although an absolute conveyance in its terms, which shall have been intended only as a security in the nature of a mortgage;
(d) equitable mortgages; and
(e) instruments which would have been deemed instruments in the nature of a mortgage prior to the effective date of this amendatory Act of 1987.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1208) (from Ch. 110, par. 15‑1208)
Sec. 15‑1208. Mortgagee. "Mortgagee" means (i) the holder of an indebtedness or obligee of a non‑monetary obligation secured by a mortgage or any person designated or authorized to act on behalf of such holder and (ii) any person claiming through a mortgagee as successor.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1209) (from Ch. 110, par. 15‑1209)
Sec. 15‑1209. Mortgagor. "Mortgagor" means (i) the person whose interest in the real estate is the subject of the mortgage and (ii) any person claiming through a mortgagor as successor. Where a mortgage is executed by a trustee of a land trust, the mortgagor is the trustee and not the beneficiary or beneficiaries.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1210) (from Ch. 110, par. 15‑1210)
Sec. 15‑1210. Nonrecord Claimant. "Nonrecord claimant" means any person (i) who has or claims to have an interest in mortgaged real estate, (ii) whose name or interest, at the time a notice of foreclosure is recorded in accordance with Section 15‑1503, is not disclosed of record either (1) by means of a recorded notice or (2) by means of a proceeding which under the law as in effect at the time the foreclosure is commenced would afford constructive notice of the existence of such interest and (iii) whose interest falls in any of the following categories: (1) right of homestead, (2) judgment creditor, (3) beneficial interest under any trust other than the beneficial interest of a beneficiary of a trust in actual possession of all or part of the real estate or (4) mechanics' lien claim. Notwithstanding the foregoing, for the purpose of this Article no proceeding shall be deemed to constitute constructive notice of the interest of any nonrecord claimant in the mortgaged real estate unless in the proceeding there is a legal description of the real estate sufficient to identify it with reasonable certainty. The classification of any person as a nonrecord claimant under the foregoing definition shall not be affected by any actual notice or knowledge of or attributable to the mortgagee.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1211) (from Ch. 110, par. 15‑1211)
Sec. 15‑1211. Notice of Foreclosure. "Notice of foreclosure" means the notice of a foreclosure which is made and recorded in accordance with Section 15‑1503 of this Article.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1212) (from Ch. 110, par. 15‑1212)
Sec. 15‑1212. Owner of Redemption. "Owner of redemption" means a mortgagor, or other owner or co‑owner of the mortgaged real estate.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1213) (from Ch. 110, par. 15‑1213)
Sec. 15‑1213. Real Estate. "Real estate" means land or any estate or interest in, over or under land (including minerals, air rights, structures, fixtures and other things which by custom, usage or law pass with a conveyance of land though not described or mentioned in the contract of sale or instrument of conveyance). "Mortgaged real estate" means the real estate which is the subject of a mortgage.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1214) (from Ch. 110, par. 15‑1214)
Sec. 15‑1214. Real Estate Installment Contract. "Real estate installment contract" means any agreement or contract for a deed under which the purchase price is to be paid in installments with title to the real estate to be conveyed to the buyer upon payment of the purchase price or a specified portion thereof. For the purpose of this definition, an earnest money deposit shall not be considered an installment.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1215) (from Ch. 110, par. 15‑1215)
Sec. 15‑1215. Receiver. "Receiver" means a receiver appointed pursuant to Section 15‑1704 of this Article.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1216) (from Ch. 110, par. 15‑1216)
Sec. 15‑1216. Recorder. "Recorder" means (i) the Recorder of the county in which the mortgaged real estate is located or (ii) if the mortgaged real estate is registered under the Torrens Act, the Registrar of Titles of the county in which the mortgaged real estate is located. "Recorder" includes any authorized assistant or employee of the Recorder.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1217) (from Ch. 110, par. 15‑1217)
Sec. 15‑1217. Recording of Instruments. "Recording of instruments" or "to record" means to present to the Recorder a document, in recordable form, which is to be recorded in accordance with Section 11 of the Recorder's Act, together with the required recording fee. The Registrar of Titles shall accept the filing of notices or affidavits required or permitted by this Article without the necessity of the production of evidence of title.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1218) (from Ch. 110, par. 15‑1218)
Sec. 15‑1218. Recorded Notice. "Recorded notice" with respect to any real estate means (i) any instrument filed in accordance with Sections 2‑1901 or 12‑101 of the Code of Civil Procedure or (ii) any recorded instrument which discloses (a) the names and addresses of the persons making the claim or asserting the interest described in the notice; (b) that such persons have or claim some interest in or lien on the subject real estate; (c) the nature of the claim; (d) the names of the persons against whom the claim is made; (e) a legal description of the real estate sufficient to identify it with reasonable certainty; (f) the name and address of the person executing the notice; and (g) the name and address of the person preparing the notice.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1219) (from Ch. 110, par. 15‑1219)
Sec. 15‑1219. Residential Real Estate. "Residential real estate" means any real estate, except a single tract of agricultural real estate consisting of more than 40 acres, which is improved with a single family residence or residential condominium units or a multiple dwelling structure containing single family dwelling units for six or fewer families living independently of each other, which residence, or at least one of which condominium or dwelling units, is occupied as a principal residence either (i) if a mortgagor is an individual, by that mortgagor, that mortgagor's spouse or that mortgagor's descendants, or (ii) if a mortgagor is a trustee of a trust or an executor or administrator of an estate, by a beneficiary of that trust or estate or by such beneficiary's spouse or descendants or (iii) if a mortgagor is a corporation, by persons owning collectively at least 50 percent of the shares of voting stock of such corporation or by a spouse or descendants of such persons. The use of a portion of residential real estate for non‑residential purposes shall not affect the characterization of such real estate as residential real estate.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1220) (from Ch. 110, par. 15‑1220)
Sec. 15‑1220. Statutory Judgment Rate. "Statutory judgment rate" means the rate of interest on judgments specified in Section 2‑1303 of the Code of Civil Procedure.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1221) (from Ch. 110, par. 15‑1221)
Sec. 15‑1221. Unknown Owner. "Unknown owner" means the same as "unknown owner" as used in Section 2‑413 of the Code of Civil Procedure.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1222) (from Ch. 110, par. 15‑1222)
Sec. 15‑1222. Acts Referred to in this Article. Acts referred to by name in this Article shall mean those Acts, as amended from time to time, and, in particular:
(a) "Torrens Act" means "An act concerning land titles", approved May 1, 1897.
(b) "Recorder's Act" means "An act to revise the law in relation to recorders", approved March 9, 1874.
(c) "Mechanics' Lien Act" means "An Act relating to contractors' and material men's liens, known as mechanics' liens", approved May 18, 1903, as amended.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1223)
Sec. 15‑1223. Occupant. "Occupant" means a person in lawful physical possession of all or part of the mortgaged real estate.
(Source: P.A. 88‑265.)
(735 ILCS 5/Art. XV Pt. 13 heading)
Part 13. Mortgage Lien Priorities
(735 ILCS 5/15‑1301) (from Ch. 110, par. 15‑1301)
Sec. 15‑1301. Lien Created. Except as provided in Section 15‑1302, from the time a mortgage is recorded it shall be a lien upon the real estate that is the subject of the mortgage for all monies advanced or applied or other obligations secured in accordance with the terms of the mortgage or as authorized by law, including the amounts specified in a judgment of foreclosure in accordance with subsection (d) of Section 15‑1603.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1302) (from Ch. 110, par. 15‑1302)
Sec. 15‑1302. Certain Future Advances. (a) Advances Made After Eighteen Months. Except as provided in subsection (b) of Section 15‑1302, as to any monies advanced or applied more than 18 months after a mortgage is recorded, the mortgage shall be a lien as to subsequent purchasers and judgment creditors only from the time such monies are advanced or applied. However, nothing in this Section shall affect any lien arising or existing by virtue of the Mechanics' Lien Act.
(b) Exceptions.
(1) All monies advanced or applied pursuant to commitment, whenever advanced or applied, shall be a lien from the time the mortgage is recorded. An advance shall be deemed made pursuant to commitment only if the mortgagee has bound itself to make such advance in the mortgage or in an instrument executed contemporaneously with, and referred to in, the mortgage, whether or not a subsequent event of default or other event not within the mortgagee's control has relieved or may relieve the mortgagee from its obligation.
(2) All monies advanced or applied, whenever advanced or applied, in accordance with the terms of a reverse mortgage shall be a lien from the time the mortgage is recorded.
(3) All monies advanced or applied in accordance with the terms of a revolving credit arrangement secured by a mortgage as authorized by law shall be a lien from the time the mortgage is recorded.
(4) All interest which in accordance with the terms of a mortgage is accrued or added to the principal amount secured by the mortgage, whenever added, shall be a lien from the time the mortgage is recorded.
(5) All monies advanced by the mortgagee in accordance with the terms of a mortgage to (i) preserve or restore the mortgaged real estate, (ii) preserve the lien of the mortgage or the priority thereof or (iii) enforce the mortgage, shall be a lien from the time the mortgage is recorded.
(Source: P.A. 84‑1462.)
(735 ILCS 5/Art. XV Pt. 14 heading)
Part 14. Methods of Terminating
Mortgagor's Interest in Real Estate
(735 ILCS 5/15‑1401) (from Ch. 110, par. 15‑1401)
Sec. 15‑1401. Deed in Lieu of Foreclosure. The mortgagor and mortgagee may agree on a termination of the mortgagor's interest in the mortgaged real estate after a default by a mortgagor. Any mortgagee or mortgagee's nominee may accept a deed from the mortgagor in lieu of foreclosure subject to any other claims or liens affecting the real estate. Acceptance of a deed in lieu of foreclosure shall relieve from personal liability all persons who may owe payment or the performance of other obligations secured by the mortgage, including guarantors of such indebtedness or obligations, except to the extent a person agrees not to be relieved in an instrument executed contemporaneously. A deed in lieu of foreclosure, whether to the mortgagee or mortgagee's nominee, shall not effect a merger of the mortgagee's interest as mortgagee and the mortgagee's interest derived from the deed in lieu of foreclosure. The mere tender of an executed deed by the mortgagor or the recording of a deed by the mortgagor to the mortgagee shall not constitute acceptance by the mortgagee of a deed in lieu of foreclosure.
(Source: P.A. 86‑974.)
(735 ILCS 5/15‑1402) (from Ch. 110, par. 15‑1402)
Sec. 15‑1402. Consent Foreclosure.
(a) No Objection. In a foreclosure, the court shall enter a judgment satisfying the mortgage indebtedness by vesting absolute title to the mortgaged real estate in the mortgagee free and clear of all claims, liens (except liens of the United States of America which cannot be foreclosed without judicial sale) and interest of the mortgagor, including all rights of reinstatement and redemption, and of all rights of all other persons made parties in the foreclosure whose interests are subordinate to that of the mortgagee and all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502 if at any time before sale:
(1) the mortgagee offers, in connection with such a
judgment, to waive any and all rights to a personal judgment for deficiency against the mortgagor and against all other persons liable for the indebtedness or other obligations secured by the mortgage;
(2) such offer is made either in the foreclosure
complaint or by motion upon notice to all parties not in default;
(3) all mortgagors who then have an interest in the
mortgaged real estate, by answer to the complaint, response to the motion or stipulation filed with the court expressly consent to the entry of such judgment;
(4) no other party, by answer or by response to the
motion or stipulation, within the time allowed for such answer or response, objects to the entry of such judgment; and
(5) upon notice to all parties who have not
previously been found in default for failure to appear, answer or otherwise plead.
(b) Objection. If any party other than a mortgagor who then has an interest in the mortgaged real estate objects to the entry of such judgment by consent, the court, after hearing, shall enter an order providing either:
(1) that for good cause shown, the judgment by
consent shall not be allowed; or
(2) that, good cause not having been shown by the
objecting party and the objecting party not having agreed to pay the amount required to redeem in accordance with subsection (d) of Section 15‑1603, title to the mortgaged real estate be vested in the mortgagee as requested by the mortgagee and consented to by the mortgagor; or
(3) determining the amount required to redeem in
accordance with subsection (d) of Section 15‑1603, finding that the objecting party (or, if more than one party so objects, the objecting party who has the least priority) has agreed to pay such amount and additional interest under the mortgage accrued to the date of payment within 30 days after entry of the order, and declaring that upon payment of such amount within 30 days title to the mortgaged real estate shall be vested in such objecting party. Title so vested shall be free and clear of all claims, liens (except liens of the United States of America which cannot be foreclosed without judicial sale) and interest of the mortgagor and of all rights of other persons made parties in the foreclosure whose interests are subordinate to the interest of the mortgagee and all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502. If any objecting party subject to such an order has not paid the amount required to redeem in accordance with that order within the 30‑day period, the court (i) shall order that such title to the mortgaged real estate shall vest in the objecting party next higher in priority (and successively with respect to each other objecting party in increasing order of such party's priority), if any, upon that party's agreeing to pay within 30 days after the entry of such further order, such amount as specified in the original order plus additional interest under the terms of the mortgage accrued to the date of payment, provided that such party pays such amount within the 30‑day period, and (ii) may order that the non‑paying objecting party pay costs, interest accrued between the start of the preceding 30‑day period and the later of the date another objecting party makes the payment, if applicable, or the date such period expired, and the reasonable attorneys' fees incurred by all other parties on account of that party's objection.
(c) Judgment. Any judgment entered pursuant to Section 15‑1402 shall recite the mortgagee's waiver of rights to a personal judgment for deficiency and shall bar the mortgagee from obtaining such a deficiency judgment against the mortgagor or any other person liable for the indebtedness or other obligations secured by the mortgage.
(Source: P.A. 86‑974.)
(735 ILCS 5/15‑1403) (from Ch. 110, par. 15‑1403)
Sec. 15‑1403. Common Law Strict Foreclosure. Nothing in this Article shall affect the right of a mortgagee to foreclose its mortgage by a common law strict foreclosure as in existence in Illinois on the effective date of this Article.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1404) (from Ch. 110, par. 15‑1404)
Sec. 15‑1404. Judicial Foreclosure. Except as provided in subsection (d) of Section 15‑1501, the interest in the mortgaged real estate of (i) all persons made a party in such foreclosure and (ii) all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502, shall be terminated by the judicial sale of the real estate, pursuant to a judgment of foreclosure, provided the sale is confirmed in accordance with this Article.
(Source: P.A. 85‑907.)
(735 ILCS 5/15‑1405) (from Ch. 110, par. 15‑1405)
Sec. 15‑1405. Power of Sale. No real estate within this State may be sold by virtue of any power of sale contained in a mortgage or any other agreement, and all such mortgages may only be foreclosed in accordance with this Article.
(Source: P.A. 84‑1462.)
(735 ILCS 5/Art. XV Pt. 15 heading)
Part 15. Judicial Foreclosure Procedure
(735 ILCS 5/15‑1501) (from Ch. 110, par. 15‑1501)
Sec. 15‑1501. Parties.
(a) Necessary Parties. For the purposes of Section 2‑405 of the Code of Civil Procedure, only (i) the mortgagor and (ii) other persons (but not guarantors) who owe payment of indebtedness or the performance of other obligations secured by the mortgage and against whom personal liability is asserted shall be necessary parties defendant in a foreclosure. The court may proceed to adjudicate their respective interests, but any disposition of the mortgaged real estate shall be subject to (i) the interests of all other persons not made a party or (ii) interests in the mortgaged real estate not otherwise barred or terminated in the foreclosure.
(b) Permissible Parties. Any party may join as a party any other person, although such person is not a necessary party, including, without limitation, the following:
(1) All persons having a possessory interest in the
mortgaged real estate;
(2) A mortgagor's spouse who has waived the right of
homestead;
(3) A trustee holding an interest in the mortgaged
real estate or a beneficiary of such trust;
(4) The owner or holder of a note secured by a trust
deed;
(5) Guarantors, provided that in a foreclosure any
such guarantor also may be joined as a party in a separate count in an action on such guarantor's guaranty;
(6) The State of Illinois or any political
subdivision thereof, where a foreclosure involves real estate upon which the State or such subdivision has an interest or claim for lien, in which case "An Act in relation to immunity for the State of Illinois", approved December 10, 1971, as amended, shall not be effective;
(7) The United States of America or any agency or
department thereof where a foreclosure involves real estate upon which the United States of America or such agency or department has an interest or a claim for lien;
(8) Any assignee of leases or rents relating to the
mortgaged real estate;
(9) Any person who may have a lien under the
Mechanic's Lien Act; and
(10) Any other mortgagee or claimant.
(c) Unknown Owners. Any unknown owner may be made a party in accordance with Section 2‑413 of the Code of Civil Procedure.
(d) Right to Become Party. Any person who has or claims an interest in real estate which is the subject of a foreclosure or an interest in any debt secured by the mortgage shall have an unconditional right to appear and become a party in such foreclosure in accordance with subsection (e) of Section 15‑1501, provided, that neither such appearance by a lessee whose interest in the real estate is subordinate to the interest being foreclosed, nor the act of making such lessee a party, shall result in the termination of the lessee's lease unless the termination of the lease or lessee's interest in the mortgaged real estate is specifically ordered by the court in the judgment of foreclosure.
(e) Time of Intervention.
(1) Of Right. A person not a party, other than a
nonrecord claimant given notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502, who has or claims an interest in the mortgaged real estate may appear and become a party at any time prior to the entry of judgment of foreclosure. A nonrecord claimant given such notice may appear and become a party at any time prior to the earlier of (i) the entry of a judgment of foreclosure or (ii) 30 days after such notice is given.
(2) In Court's Discretion. After the right to
intervene expires and prior to the sale in accordance with the judgment, the court may permit a person who has or claims an interest in the mortgaged real estate to appear and become a party on such terms as the court may deem just.
(3) Later Right. After the sale of the mortgaged
real estate in accordance with a judgment of foreclosure and prior to the entry of an order confirming the sale, a person who has or claims an interest in the mortgaged real estate, may appear and become a party, on such terms as the court may deem just, for the sole purpose of claiming an interest in the proceeds of sale. Any such party shall be deemed a party from the commencement of the foreclosure, and the interest of such party in the real estate shall be subject to all orders and judgments entered in the foreclosure.
(4) Termination of Interest. Except as provided in
Section 15‑1501(d), the interest of any person who is allowed to appear and become a party shall be terminated, and the interest of such party in the real estate shall attach to the proceeds of sale.
(f) Separate Actions. Any mortgagee or claimant, other than the mortgagee who commences a foreclosure, whose interest in the mortgaged real estate is recorded prior to the filing of a notice of foreclosure in accordance with this Article but who is not made a party to such foreclosure, shall not be barred from filing a separate foreclosure (i) as an intervening defendant or counterclaimant in accordance with subsections (d) and (e) of Section 15‑1501 if a judgment of foreclosure has not been entered in the original foreclosure or (ii) in a new foreclosure subsequent to the entry of a judgment of foreclosure in the original foreclosure.
(g) Service on the State of Illinois. When making the State of Illinois a party to a foreclosure, summons may be served by sending, by registered or certified mail, a copy of the summons and the complaint to the Attorney General. The complaint shall set forth with particularity the nature of the interest or lien of the State of Illinois. If such interest or lien appears in a recorded instrument, the complaint must state the document number of the instrument and the office wherein it was recorded.
(Source: P.A. 88‑265.)
(735 ILCS 5/15‑1502) (from Ch. 110, par. 15‑1502)
Sec. 15‑1502. Nonrecord Claimants. (a) Right to Become Record Claimant. At any time prior to the recording of a notice of foreclosure in accordance with Section 15‑1503, a nonrecord claimant or unknown owner may become a record claimant with respect to the foreclosure by recording a notice of such claimant's interest in the mortgaged real estate in accordance with Section 15‑1218.
(b) Rights of Nonrecord Claimants After Notice. The interest in the mortgaged real estate of a nonrecord claimant who is given notice of the foreclosure as provided in paragraph (2) of subsection (c) of Section 15‑1502 shall be barred and terminated by any judgment of foreclosure to the same extent as if such claimant had been a party.
(c) Terminating Rights of Nonrecord Claimants. (1) Contents of Affidavit. A party in a foreclosure seeking to bar and terminate the interest in the mortgaged real estate of nonrecord claimants shall file in the office of the clerk of the court in which such action is pending an affidavit stating (i) the names and respective present or last known places of residence of such nonrecord claimants, or (ii) that the existence, names or the present or last known places of residence, or both, of such nonrecord claimants are unknown as of that time to the party and to the party's attorney. Such affidavit, with respect to names and places of residence, may be made upon information and belief of the affiant. The affidavit need not state that inquiry has been made to ascertain the names or present or last known places of residence of such nonrecord claimants, and no such inquiry need be made.
(2) Notice. At least 30 days prior to the entry of a judgment of foreclosure, any person identified in the affidavit described in paragraph (1) of subsection (c) of Section 15‑1502 shall be given a notice of the foreclosure complying with the requirements of Section 15‑1503 by the party filing the affidavit. Such notice shall be given in the manner and upon the terms and conditions set forth in Sections 2‑206 and 2‑207 of the Code of Civil Procedure, except that (i) such notice with respect to nonrecord claimants whose names are not set forth in such affidavit, instead of being addressed to such nonrecord claimants by name, may simply be addressed to "Nonrecord Claimants" and (ii) when the mortgaged real estate is located within a municipality in a county with a population under 2,000,000, publication shall be in a newspaper generally circulated in such municipality. Such notice shall have the same effect with respect to all nonrecord claimants designated therein as though a notice containing their names had been published in accordance with Sections 2‑206 and 2‑207 of the Code of Civil Procedure and may be combined with any notice published against parties defendant in the same action pursuant to those Sections.
(3) Errors. Any inaccuracy in the affidavit described in paragraph (1) of subsection (c) of Section 15‑1502 or the failure to file such affidavit or the failure to give notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502 shall not invalidate any sale made pursuant to this Article.
(4) Rights of Barred Nonrecord Claimant. Nothing in paragraph (3) of subsection (c) of Section 15‑1502 shall affect the rights, if any, of any nonrecord claimant whose interest in the mortgaged real estate was barred and terminated to bring an action against any party to the foreclosure on whose behalf the affidavit was filed, on account of the filing of an inaccurate affidavit by such party in accordance with paragraph (1) of subsection (c) of Section 15‑1502 or the failure to give notice in accordance with paragraph (2) of subsection (c) of Section 15‑1502.
(Source: P.A. 84‑1462.)
(735 ILCS 5/15‑1503) (from Ch. 110, par. 15‑1503)
Sec. 15‑1503. Notice of Foreclosure. A notice of foreclosure, whether the foreclosure is initiated by complaint or counterclaim, made in accordance with this Section and recorded in the county in which the mortgaged real estate is located shall be constructive notice of the pendency of the foreclosure to every person claiming an interest in or lien on the mortgaged real estate, whose interest or lien has not been recorded prior to the recording of such notice of foreclosure. Such notice of foreclosure must be executed by any party or any party's attorney and shall include (i) the names of all plaintiffs and the case number, (ii) the court in which the action was brought, (iii) the names of title holders of record, (iv) a legal description of the real estate sufficient to identify it with reasonable certainty, (v) a common address or description of the location of the real estate and (vi) identification of the mortgage sought to be foreclosed. An incorrect common address or description of the location, or an immaterial error in the identification of a plaintiff or title holder of record, shall not invalidate the lis pendens effect of the notice under this Section. A notice which complies with this Section shall be deemed to comply with Section 2‑1901 of the Code of Civil Procedure and shall have the same effect as a notice filed pursuant to that Section; however, a notice which complies with Section 2‑1901 shall not be constructive notice unless it also complies with the requirements of this Section.
(Source: P.A. 86‑974.)
(735 ILCS 5/15‑1504) (from Ch. 110, par. 15‑1504)
Sec. 15‑1504. Pleadings and service.
(a) Form of Complaint. A foreclosure complaint may be in substantially the following form:
(1) Plaintiff files this complaint to foreclose the
mortgage (or other conveyance in the nature of a mortgage) (hereinafter called "mortgage") hereinafter described and joins the following person as defendants: (here insert names of all defendants).
(2) Attached as Exhibit "A" is a copy of the
mortgage and as Exhibit "B" is a copy of the note secured thereby.
(3) Information concerning mortgage:
(A) Nature of instrument: (here insert whether a
mortgage, trust deed or other instrument in the nature of a mortgage, etc.)
(B) Date of mortgage:
(C) Name of mortgagor:
(D) Name of mortgagee:
(E) Date and place of recording:
(F) Identification of recording: (here insert
book and page number or document number)
(G) Interest subject to the mortgage: (here
insert whether fee simple, estate for years, undivided interest, etc.)
(H) Amount of original indebtedness, including
subsequent advances made under the mortgage:
(I) Both the legal description of the mortgaged
real estate and the common address or other information sufficient to identify it with reasonable certainty:
(J) Statement as to defaults, including, but not
necessarily limited to, date of default, current unpaid principal balance, per diem interest accruing, and any further information concerning the default:
(K) Name of present owner of the real estate:
(L) Names of other persons who are joined as
defendants and whose interest in or lien on the mortgaged real estate is sought to be terminated:
(M) Names of defendants claimed to be personally
liable for deficiency, if any:
(N) Capacity in which plaintiff brings this
foreclosure (here indicate whether plaintiff is the legal holder of the indebtedness, a pledgee, an agent, the trustee under a trust deed or otherwise, as appropriate):
(O) Facts in support of redemption period
shorter than the longer of (i) 7 months from the date the mortgagor or, if more than one, all the mortgagors (I) have been served with summons or by publication or (II) have otherwise submitted to the jurisdiction of the court, or (ii) 3 months from the entry of the judgment of foreclosure, if sought (here indicate whether based upon the real estate not being residential, abandonment, or real estate value less than 90% of amount owed, etc.):
(P) Statement that the right of redemption has
been waived by all owners of redemption, if applicable:
(Q) Facts in support of request for attorneys'
fees and of costs and expenses, if applicable:
(R) Facts in support of a request for
appointment of mortgagee in possession or for appointment of receiver, and identity of such receiver, if sought:
(S) Offer to mortgagor in accordance with
Section 15‑1402 to accept title to the real estate in satisfaction of all indebtedness and obligations secured by the mortgage without judicial sale, if sought:
(T) Name or names of defendants whose right to
possess the mortgaged real estate, after the confirmation of a foreclosure sale, is sought to be terminated and, if not elsewhere stated
More information on Illinois foreclosure laws
Avoid and Stop Foreclosure in Addison, Aledo, Algonquin, Alsip, Alton, Anna, Antioch, Arlington Heights, Aurora, Barrington, Bartlett, Batavia, Beardstown, Belleville, Bellwood, Belvidere, Bensenville, Benton, Berwyn, Bethalto, Bloomingdale, Bloomington, Blue Island, Bolingbrook, Bourbonnais, Bradley, Breese, Bridgeview, Broadview, Brookfield, Buffalo Grove, Burbank, Burr Ridge, Calumet City, Canton, Carbondale, Carlinville, Carlyle, Carmi, Carol Stream, Carpentersville, Carterville, Carthage, Cary, Centralia, Champaign, Charleston, Chatham, Chester, Chicago, Chicago Heights, Chicago Ridge, Chillicothe, Cicero, Clarendon Hills, Clinton, Collinsville, Columbia, Country Club Hills, Crete, Crystal Lake, Danville, Darien, Decatur, Deerfield, Dekalb, Des Plaines, Dixon, Dolton, Downers Grove, Du Quoin, Dundee, East Alton, East Moline, East Peoria, East Saint Louis, Edwardsville, Effingham, Elburn, Elgin, Elk Grove Village, Elmhurst, Elmwood Park, Eureka, Evanston, Evergreen Park, Fairfield, Fairview Heights, Flora, Flossmoor, Forest Park, Fox Lake, Frankfort, Franklin Park, Freeport, Galena, Galesburg, Geneseo, Geneva, Glen Carbon, Glen Ellyn, Glencoe, Glendale Heights, Glenview, Godfrey, Granite City, Grayslake, Greenville, Gurnee, Harrisburg, Harvard, Harvey, Havana, Hazel Crest, Herrin, Hickory Hills, Highland, Highland Park, Hillsboro, Hillside, Hinsdale, Homewood, Hoopeston, Huntley, Itasca, Jacksonville, Jerseyville, Joliet, Kankakee, Kewanee, La Grange, La Grange Park, La Salle, Lake Bluff, Lake Forest, Lake In the Hills, Lake Villa, Lake Zurich, Lansing, Lemont, Libertyville, Lincoln, Lincolnshire, Lincolnwood, Lisle, Litchfield, Lockport, Lombard, Loves Park, Lyons, MacHesney Park, MacOmb, Mahomet, Marengo, Marion, Marseilles, Marshall, Matteson, Mattoon, Maywood Mc Leansboro, McHenry, Melrose Park, Mendota, Metamora, Metropolis, Midlothian, Milan, Mokena, Moline, Monee, Monmouth, Montgomery, Monticello, Morris, Morrison, Morton, Morton Grove, Mount Carmel, Mount Prospect, Mount Vernon, Mundelein, Murphysboro, Naperville, Nashville, New Lenox, Newton, Niles, Normal, North Aurora, North Chicago, Northbrook, O Fallon, Oak Brook, Oak Forest, Oak Lawn, Oak Park, Olney, Olympia Fields, Oregon, Orland Park, Oswego, Ottawa, Palatine, Palos Heights, Palos Hills, Palos Park, Pana, Paris, Park Forest, Park Ridge, Pekin, Peoria, Peru, Petersburg, Pinckneyville, Pittsfield, Plainfield, Plano, Pontiac, Princeton, Prospect Heights, Quincy, Rantoul, Red Bud, River Forest, River Grove, Riverdale, Riverside, Robinson, Rochelle, Rock Falls, Rock Island, Rockford, Rolling Meadows, Romeoville, Roscoe, Roselle, Round Lake, Rushville, Saint Charles, Salem, Sandwich, Savanna, Schaumburg, Schiller Park, Shelbyville, Silvis, Skokie South Beloit, South Elgin, South Holland, Sparta, Spring Grove, Springfield, Sterling, Streamwood, Streator, Sullivan, Summit Argo, Sumner, Sycamore, Taylorville, Tinley Park, Troy, Tuscola, Urbana, Vandalia, Vernon Hills, Villa Park, Warrenville, Washington, Waterloo, Watseka, Wauconda, Waukegan, West Chicago, West Frankfort, Westchester, Western Springs, Westmont, Wheaton, Wheeling, Wilmette, Wilmington, Winfield, Winnetka, Wood Dale, Wood River, Woodridge, Woodstock, Worth, Yorkville, Zion
we are helping homeowners in Illinois stop foreclosure read what they have to say
City: Swansea
State: Illinois
Zip Code: 62226
County: St. Clair
Fell behind on payments, received a partial claim from lender, had payday loans that were becoming do. Couldn't make full payments and lender wouldn't accept partial payments. Have paid off all loans and can resume making full payments. Can afford my home and want to keep. Wells Fargo
foreclosure Illinois
City: bolingbrook
State: il
Zip Code: 60440
County: will
foreclosure help in Illinois
My daughter got sick about a year ago and it caused me to take off work quite a bit. At the time I had no health insurance for her and this just made me get behind on quite a bit. Since then I\'ve been trying to get caught up but it\'s really hard. I now have health insurance for my daughter and i am currently back on my job full time. My mortgage company is option one. save my home in Illinois
|
