Stop Foreclosure in Illinois

 


I. How to Stop Foreclosure in Illinois

Having your housed foreclosed is a very traumatizing experience. Especially with the economic recession in the country today, this is now becoming more common. The homeowners of Illinois have a few alternatives when faced with this problem. Unfortunately, these options need cash and must be discussed in length with your lender. Finding out which of these options work best for you will be your best bet in stopping foreclosure.

  • Step 1

    Settle with your lender a plan of repayment that will permit you to pay back your shortcoming slowly. The usual option is by placing a predetermined monthly amount on top of your regular payments. This will allow you to pay back your debt little by little. The lenders are pretty much open to this compromise as long as they trust your ability to pay them. In the state of Illinois, foreclosures are a judicial matter and that means that it has to be declared by a judge. You can use that fact as a trump card to negotiate a plan of repayment by saving everyone the hassle of going to court.

  • Step 2

    Prepare a plan of reinstatement. Repayment plans are done to pay off the missed payment gradually but a reinstatement plan pays all of it in one sitting along with the late fees and legal costs. This is hard financially but it solves the problem at once. In the state of Illinois, you have three months to complete all of the payments when under a reinstatement plan and you are only allowed to use this method once in every five years.

  • Step 3

    Another option but is quite drastic is to sell your house. Some lenders will permit you to sell your house using the usual methods of having a Realtor and using the regular channels. However, they may only allow this if you can sell your house within 3 to 50 months. This can benefit you by saving you credit rating from further harm and allow you to get some of your investments back. Lenders will allow this since a traditional sale will usually give them more than a foreclosure would, especially in the state of Illinois where it must be court-ordered, lessening the legal costs for everyone.

  • Step 4

    Refinancing your loan. You may be able to re-negotiate a new loan with better conditions depending on the state of your credit and your income. You may also be able to modify or restructure your loan so that it can be paid easier. This may be a very hard option to accomplish but can still be done.

II. Synopsis of Illinois Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: No

Primary Security Instruments: Mortgage

Timeline: Typically 210 days

Right of Redemption: No

Deficiency Judgments Allowed: Yes

Lenders in Illinois have a number of options available to them to foreclose on a mortgage in default.

Judicial Foreclosure

A notice of the lenders intent to foreclose must be given to the borrower, and any other person entitled by Illinois statutes to receive notice, at least thirty (30) days prior to the courts judgment of foreclosure.

If the court finds in favor of the lender and issues a notice of sale, the sale will be conducted on the terms and conditions specified in the notice of sale, provided they meet the minimum standards provided in the Illinois Statutes.

The sheriff or any judge within the county where the property is located may conduct the sale. The borrower has no rights of redemption after the foreclosure sale.

Deed in Lieu of Foreclosure

If the borrower has defaulted on the mortgage and the lender agrees, the borrower may simply give the deed to the lender and his interests in the property securing the deed will be terminated. If the lender agrees and accepts the deed, they may not seek to obtain a deficiency judgment against the borrower at any time afterward.

Consent Foreclosure

In this type of foreclosure, the court enters a judgment satisfying the mortgage by giving absolute title to the property secured by the mortgage to the lender. The borrower has no rights of redemption after this type of foreclosure judgment has been rendered and the lender may not file for a deficiency judgment.

Lenders may also foreclose on a mortgage in default by using the common law strict foreclosure method, but Illinois law does not permit non-judicial power of sale foreclosures.

III. Where to go to for Foreclosure Help

HUD In Chicago

Call: (312) 353-5680
Fax: (312) 886-2729
TTY: (312) 353-7143

Ralph Metcalfe Federal Building
77 West Jackson Boulevard
Chicago, Illinois 60604

Office Hours: 8:30 a.m. to 5:00 p.m.
Monday through Friday

In Springfield
Call: (217) 492-4120
Fax: (217) 492-4154
TTY: (217) 492-4101

John W. Meyers,
Field Office Director
email: john.w.meyers@hud.gov

500 West Monroe, 1SW
Springfield, IL 62704

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

IV. Stop Foreclosure Early

Seniors Reverse Mortgage, Inc.
708-679-1003
3615 Park Drive
Olympia Fields, IL

Bank of America Home Loans
224-715-0342
1356 S Milwaukee Ave
Libertyville, IL

Charter Mortgage Services Inc
630.632.0671
145 Covington Dr
Bloomingdale, IL

OPEN MORTGAGE LLC
815-690-8000
15130 S RT 59
PLAINFIELD, IL

Mortgage Buy Sell Inc.
847-439-2300
409 Busse Road
Elk Grove Village, IL

Quicken Loans
(866) 602-1549
20555 Victor Pkwy Lvnia
Peru, IL

Blue Chicago financial Corp
773-523-2777
3793 South Archer Ave
Chicago, IL

Wells Fargo Reverse Mortgages
312-919-4749
511 W North Ave
Chicago, IL

AAA Reverse Mortgage Specialists, Inc.
815-893-7324
PO Box 631
Spring Grove, IL

American Fidelity Mortgage Services Inc ~formally Charter Mortgage Services
630-632-0671
145 Covington Dr
Bloomingdale, IL