Illinois Foreclosure Law Needs Improvement..


The February 2009 Report “Foreclosing a Dream” by National Consumer Law Center examines the current foreclosure laws in all 50 states and evaluates how well the laws in each state protect homeowners facing foreclosure.

This study recommended the following actions in order to restore fairness to homeowners in the foreclosure process before a foreclosure sale and after the sale:

1. A Judicial Foreclosure Process should be the norm where homeowners are given due process in the courts.

2 Homeowners must be served a Notice of Default

3. States should require a lender to make attempts to modify the loan before foreclosure can be initiated through a formal court proceeding.

4. Homeowners should be given the right to cure the default , catch up on missing payment , without penalty , before any formal foreclosure proceedings.

5. Guarantee the right to reinstate theĀ  mortgage by paying the all payments in arrears and any costs up to the time of a foreclosure sale.

6. Each State should create an Emergency Financial Assistance Fund for homeowners facing foreclosure.

7. All homeowners with the Right to Redeem the property after a foreclosure sale.

8. Prohibit Lenders from giving homeowners Deficiency Judgements after foreclosure

9. Accounting of all sales to be supervised by the courts

10. Require court supervision to surplus of any sale proceeds to homeowner

Illinois Foreclosure Law

Pre-Foreclosure Protection
Homeowner must be served Notice of Default Yes
Homeowners right to Judicial Review Yes
Homeowners Right to Loss Mitigation before Foreclosure No
Homeowners Right to Cure before Sale No
Homeowners Right to Reinstate before Sale No
Housing Emergency Assistance Fund No
Post Foreclosure Sale Protection
Homeowner Right to Redeem Home After Foreclosure No
Protection from Deficiency Judgement No
Court Supervision of Sale Proceeds Yes
Court Supervision of Surplus Yes
  1. Tony Orlando

    Thanks for posting the article, was certainly a great read!

  2. Maria Carrasco

    Keep in touch!

  3. Ingred Alvarez

    Hi thanks for your article. I was wondering if you had an update on the new bill that was imposed and could you tell us if it was also applicable to tenants? I also checked this site for more info.

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