The Foreclosure Process in Illinois
- Typically the homeowner falls behind on their payments for 3-4 months and the plaintiff ( the mortgage) sues the defendant (the homeowner.) The plaintiff through their attorney than gives public and legal notice of the lawsuit which is called Lis Pendens. The Lis Pendens is recorded at the county's Recorder of Deeds and affects the 'title' to the property.
- The second phase of foreclosure can take anywhere from 3-6 months or longer after the initial Lis Pendens. Basically, the plaintiff's attorney goes back to court to get a judgment of the amount due and notice of sale.(see 'balance due' on our details page and this is the judgment amount.) The homeowner has lots of options to him/her after the lis pendens to stall the 'judgment like selling the property, negotiating with the bank or refinancing if they have good enough credit.
- The next phase in the foreclosure process is the actual auction. The homeowners right of redemption has expired (7 months after the initial notice of foreclosure or 3 months after the judgment, whichever is later.) After the judgment and notice of sale the auction is scheduled. There is a public notice of the sale with the date.
- Auctions take place in the county the property is located in. They are either conducted by a private company (especially in Cook County) or the sheriff. Depending on the auction you will need 10-25% of the amount you bid in the form of a cashier's check at the auction and the full amount paid within 24hrs. Most properties revert back to the plaintiff (bank) which is referred to as an REO, or are canceled. A minority of properties actually get bid on and sold to private parties at the auction.