Judicial Foreclosure Process in Illinois Illinois State is often referred to as the lien theory state where individuals are allowed to use their property as security to take up loans or for any underlying loans an individual has. Homeowners in the state are offered various forms of protection by the law especially during home foreclosure, and this is governed by Chapter 735, Sections 5/15-1501 through 5/15-1605 statute (Loftsgordon). The statute aims at protecting the homeowners, and, therefore, it is important that a homeowner ensures that they are not caught off guard in the event where they are at risk of losing a home to foreclosure. The need to have knowledge of these laws and fully understand the various forms of protection offered to them. For example, not many individuals know that the law requires that they are provided with housing counselling before the foreclosure process even starts. Foreclosure process First, it is very important to note that in this state, the foreclosure process is strictly judicial meaning that the lender has to file a suit with the court and the court is the one responsible for issuing a final decision on the foreclosure. The process of foreclosure in the states takes about 6-8 month before an individual completely loses their home. A foreclosure is an option for the borrower when the homeowner is unable to meet the repayment of the loan as they signed on the mortgage form as well as the promissory note. However, foreclosure is not guaranteed by the lack of repayment since there are procedures and processes of the law that dictates how foreclosure needs to be carried out as follows: 1. Grace period notice: If the homeowner who is the borrower fails to make repayment within 30 days or more the lender is required to send a notice to them. The notice is to inform them that they need to seek housing counsel. This could help them find ways of making the repayment or work out a deal with the lenders. 2. Beginning foreclosure: A lender is only allowed to file a lawsuit against the borrower if the loan repayment is 120 days past due. The borrower must then be served with a notice which is most often done by the sheriff informing them they have been sued and also the reasons why one has been sued. This document is called the foreclosure complaint, and it also has a summary of court summons that one is subject to and also a list of rights that one has during the entire foreclosure process (Sirota & Barrel). The court gives the borrower a period of 30 days to file a response with the court. It is important that one makes an appearance to court in the set dates since failure to appear to court make an individual lose the lawsuit by default, and that loses their property. 3. Judgement and sale: The judgment is made after the borrower is given an opportunity to reinstate their mortgage. The lender gets a judgment against the borrower, and the court sets a redemption period which lasts three months aft ...

1. Judicial Foreclosure Process in Illinois
Illinois State is often referred to as the lien theory state where
individuals are allowed to use their property as security to take
up loans or for any underlying loans an individual has.
Homeowners in the state are offered various forms of protection
by the law especially during home foreclosure, and this is
governed by Chapter 735, Sections 5/15-1501 through 5/15-
1605 statute (Loftsgordon). The statute aims at protecting the
homeowners, and, therefore, it is important that a homeowner
ensures that they are not caught off guard in the event where
they are at risk of losing a home to foreclosure. The need to
have knowledge of these laws and fully understand the various
forms of protection offered to them. For example, not many
individuals know that the law requires that they are provided
with housing counselling before the foreclosure process even
starts.
Foreclosure process
First, it is very important to note that in this state, the
foreclosure process is strictly judicial meaning that the lender
has to file a suit with the court and the court is the one
responsible for issuing a final decision on the foreclosure. The
process of foreclosure in the states takes about 6-8 month
before an individual completely loses their home. A foreclosure
is an option for the borrower when the homeowner is unable to
meet the repayment of the loan as they signed on the mortgage
form as well as the promissory note. However, foreclosure is
not guaranteed by the lack of repayment since there are
procedures and processes of the law that dictates how
foreclosure needs to be carried out as follows:

2. 1. Grace period notice: If the homeowner who is the borrower
fails to make repayment within 30 days or more the lender is
required to send a notice to them. The notice is to inform them
that they need to seek housing counsel. This could help them
find ways of making the repayment or work out a deal with the
lenders.
2. Beginning foreclosure: A lender is only allowed to file a
lawsuit against the borrower if the loan repayment is 120 days
past due. The borrower must then be served with a notice which
is most often done by the sheriff informing them they have been
sued and also the reasons why one has been sued. This
document is called the foreclosure complaint, and it also has a
summary of court summons that one is subject to and also a list
of rights that one has during the entire foreclosure process
(Sirota & Barrel). The court gives the borrower a period of 30
days to file a response with the court. It is important that one
makes an appearance to court in the set dates since failure to
appear to court make an individual lose the lawsuit by default,
and that loses their property.
3. Judgement and sale: The judgment is made after the
borrower is given an opportunity to reinstate their mortgage.
The lender gets a judgment against the borrower, and the court
sets a redemption period which lasts three months after the
judgment. This is a period where the borrower is required to pay
off the debt that they owe the mortgage company. After this
judgment, the house title is transferred and after the redemption
period is over the house can then be sold with the approval of
the sheriff sale, and one is offered a 30 days grace period after
the approval of the sheriff sale to move out of the house. The
borrower must be informed of the sale through a notice of sale
document which should be sent to them at least ten days before
the sale is made and the notice of the foreclosure sales needs to
be published by the lender once every week for three weeks
continuously.

3. Alternative processes that are available to avoid foreclosure
The law also offers special protections to individuals to help
them avoid foreclosure completely.
1. Working out an agreement between the borrower and the
lender: During the grace period described above, the borrower
and the lender have the option of coming up with an agreement
which can include modifying the mortgage, coming up with a
forbearance agreement as well as plan for repayment. Coming
up with such an agreement is important for both parties since it
saves them the cost and the time lost while going through the
entire legal process described above.
2. Reinstating: Homeowners of borrowers are given a 90-day
period by the court in between the case, a period between which
that can choose to reinstate their mortgage and avoid the
foreclosure altogether. Reinstating means that an individual pas
all the overdue payments that is the principles plus the interests
and also pays any fees and fines and catch up with their
mortgage repayment.
3. Redemption: An individual is given an opportunity to
repurchase the property within a certain period, and this is three
months after the judgment is made as stated above or 7 months
after the borrower receives the summons and foreclosure
complaint (Maeda & Houck). This gives them their ownership
of the house back.
Conclusion - WEAK
It is important for all homeowners to have this information.
This is because it can help them avoid being taken advantage of
during the process, avoid the long process altogether or save
themselves from the foreclosure.
References

4. Loftsgordon, A. (2017). Illinois Home Foreclosure Laws.
AllLaw. From:
http://www.alllaw.com/articles/nolo/foreclosure/laws-in-
illinois.htmlMaeda, M. & Houck, M. (2010). The complete
guide to preventing foreclosure on your home: legal secrets to
beat foreclosure and protect your home now. Ocala, Fla:
Atlantic Pub. Group.
Sirota, D., & Barrell, D. (2012). Essentials of Real Estate
Finance, 13th Edition, Revised. Champaign, IL: Dearborn Real
Estate Education. ISBN: 9781427738196