THE FORECLOSURE PROCESS

   If you are having difficulty making your mortgage payments in these difficult economic times, it may be helpful to know the basics of the foreclosure process in Illinois and what you can do to improve your situation. The most important thing is not to do nothing! As you will see, a number of options are available to you until the very last minute.

   The typical foreclosure proceeding takes from nine to twelve months from the time that a borrower ceases to make his or her payments. After the lender fails to receive a payment for three or four months, it will initiate legal proceedings by filing and recording a complaint and what is known as a Lis Pendens. This document gives notice that a foreclosure proceeding has begun and that the lender is seeking a judgment in the amount of the mortgage (plus arrears interest and various costs associated with the foreclosure process) and an order of the court enabling the lender to auction off the property. This portion of the process can take from three to six months. Finally, the actual sale of the property will take place upon the expiration of the borrower's right of redemption (seven months from the day that the home owner is served with the complaint or three months after the court renders judgment, whichever is later. If the property is not sold at the auction, it reverts to the lender. By the time this happens, a year and a half will have elapsed.

   It is important to realize that this time frame may provide a borrower ample time to reinstate the loan, pay it off, refinance it, sell the property or otherwise negotiate a resolution with the lender, such as by means of what is known as a "short sale," in which the lender agrees to take less than what is owed.

   The important thing is not to waste any time. Talk to your lender as soon as you begin having problems making the payments. Real estate lenders really do not want to foreclose on your property. They are in the business of lending money, not of owning real estate. It would also be prudent to consult with a knowledgeable real estate attorney at this stage so that you will know exactly what your options are.

   If your lender files a lawsuit against you, contact a lawyer immediately. As I have indicated, just because you are being sued doesn't mean that you have run out of options. It may even be possible to prevent the sale altogether if your lender has engaged in fraudulent practices.

   I have many years of negotiating experience in real estate matters, as well as an extensive litigation background in the event that it becomes necessary to defend a lawsuit filed by the lender while continuing to work at achieving an acceptable resolution to the problem.

  The Law Office of Robert S. Hayes maintains a blog which addresses real estate matters of interest to consumers and also accepts all major credit cards in payment for services rendered.

At the Law Office of Robert S. Hayes, I represent clients from Chicago and its northern suburbs in real estate transactions and a wide array of other real estate matters. I am also always ready to assist and provide information to real estate agents.