Does Illinois have foreclosure laws that help homeowners?

Illinois foreclosure laws are among the stiffest in the United States, as an Illinois debtor has no right of redemption after a foreclosure sale.  He/She normally has about 7 months from the time of the foreclosure complaint to cure the default and redeem his/her property. 

There are many options for homeowners to stop the foreclosing of their homes.  Lender programs are one option.  With the cost and time of a judicial foreclosure, along with the high number of foreclosures taking place in Illinois, lenders are often more willing to negotiate with lenders in order to prevent foreclosures.  These negotiations can include loan modification, loan reinstatement, and forbearance.

Government programs are another option for Illinois homeowners.  You should consult an attorney and a counselor from the U.S. Department of Housing and Urban Development (HUD) to make sure you are eligible for these programs, which include the Hope for Homeowners Act, the Homeowner Affordability and Stability Plan, and the Mortgage Forgiveness Debt Relief Act of 2007.

Bankruptcy programs are a third option for Illinois homeowners.  While the borrower’s credit will be negatively impacted for years, lenders cannot continue with their foreclosure actions, ensuring that the borrowers keep their homes so that they can regroup.  Borrowers can file either a Chapter 13 or Chapter 7 bankruptcy.

Home sale programs are another option.  These are for homeowners who cannot avoid selling their homes, but can realize some profit from the sale to clear up other debt.  Short sales, deeds in lieu of foreclosure, and consent foreclosure can enable the debtor to relieve some or all of his/her debt, with the lender being unable to file a deficiency judgment against the debtor.

Talk to an Illinois foreclosure attorney for a case review and for obtaining legal advice regarding your options under Illinois foreclosure laws.