If I Lose My Home to Foreclosure in Illinois, Can I Get It Back?

In Illinois, you may redeem your home before the foreclosure sale. And depending on the circumstances, you might also get a short redemption period after the sale.

What Is the Right of Redemption After a Foreclosure Sale?

In about half of the states, homeowners get one final chance to save their home, even after a foreclosure sale. The right to redeem the property after a foreclosure sale is called a "statutory" right of redemption because it's set out in the state statutes (laws).

Suppose your state provides a statutory right of redemption. In that case, you get a redemption period, which is a limited amount of time to repurchase the home from the person or entity that bought it at the foreclosure sale. Depending on state law, you must either reimburse the purchaser for the price paid at the sale or pay off the full amount you owed on the mortgage loan, plus foreclosure fees and costs.

Basically, the redemption period gives you some additional time after the foreclosure sale to find funding to buy your home back. The length of the redemption period following the sale, if available, varies widely depending on state law and the particular circumstances.

Right of Redemption After Judicial and Nonjudicial Foreclosures

In some states, foreclosures are always judicial, which means they go through the court system. In others, the foreclosure process is typically nonjudicial (out of court), although these states also permit judicial foreclosures.

Right of redemption in judicial foreclosure states. States that use a judicial process to foreclose often give homeowners the right of redemption after a foreclosure. Even if state law doesn't provide an actual redemption period after the sale, some states allow a very limited amount of time for the homeowner to redeem until certain post-sale formalities are completed. For example, the homeowner might be able to redeem up until the court confirms the foreclosure sale.

Right of redemption in nonjudicial states. Except for a few states, there is generally no redemption period after a nonjudicial foreclosure. States that allow nonjudicial foreclosures sometimes have more than one law for redemption periods—one that applies to nonjudicial foreclosures and another to judicial foreclosures. In general, these states tend to provide a redemption period following a judicial foreclosure but not after a nonjudicial one.

What Are the Rights of Redemption for Foreclosure in Illinois?

In a nutshell, here are the rules for redeeming an Illinois home, which are explained in more detail below:

• General right to redeem. You can redeem the home up until seven months after you receive the foreclosure summons or three months after the court enters a judgment of foreclosure, whichever is later.
• Special right of redemption. If the lender (or subsequent owner of the loan) purchases the home at the foreclosure sale and the sale price was less than the total amount you owed, you have 30 days after the court confirms the sale to redeem.
• Reduced redemption period for some situations. The court can reduce the redemption period under certain circumstances, such as if you abandon the home.

When You Can Redeem Your Home Before a Foreclosure Sale in Illinois

Illinois foreclosures are judicial. After the lender gets a judgment for foreclosure from the judge, your home will be sold at a foreclosure sale.

In Illinois, you can redeem your home until the later of:

• seven months after you receive the summons of the foreclosure action (or are served by publication if the lender is unable to serve you the foreclosure papers personally) or
• three months after the date that the court enters the judgment of foreclosure. (735 Ill. Comp. Stat. 5/15-1603(b)(1)).

The foreclosure sale may not be held until after this redemption period expires.

What Are the Costs Involved in Redeeming Before a Foreclosure Sale in Illinois?

To redeem, you must pay the amount specified in the judgment, including principal, interest, fees, and costs, plus any additional expenses incurred between the date of judgment and the date of redemption. (735 Ill. Comp. Stat. 5/15-1603(d)).

Reduced Redemption Period for Certain Homes

If the court finds that you abandoned the home (left it), the redemption period expires 30 days after the foreclosure judgment date. (735 Ill. Comp. Stat. 5/15-1603(b)(4)).

The redemption period can also be shortened if:

• the value of the home on the judgment date is less than 90% of the amount required to redeem, and
• the lender waives the right to a deficiency judgment. (735 Ill. Comp. Stat. 5/15-1603(b)(3).)

Under these circumstances, the redemption period will be reduced to 60 days after the foreclosure judgment date or the expiration of any reinstatement period, whichever is later.

Redeeming a Foreclosed Home (After the Foreclosure Sale) in Illinois

You get a special right to redeem for 30 days after the court confirms the foreclosure sale if:

• the lender (or subsequent loan holder) purchases the home at the foreclosure sale, and
• the sale price was less than the total amount you owe, including principal, interest, fees, and costs. (735 Ill. Comp. Stat. 5/15-1604(a)).

What Are the Costs Involved in Redeeming a Foreclosed Home in Illinois?

To get your home back through the special right of redemption, you'll have to pay the foreclosure sale price plus interest and costs. (735 Ill. Comp. Stat. 5/15-1604).

What Are the Steps to Take to Redeem My Foreclosed Property in Illinois?

The procedures for redeeming a home in Illinois are complicated. You'll have to give a written notice of intent to redeem to the lender's attorney that meets specific requirements, file a certification with the court, and you'll have to meet certain deadlines. (735 Ill. Comp. Stat. 5/15-1603(e), (f)).

Talk to a local foreclosure attorney to find out the exact procedures you must follow.

What Happens If I Can't Afford to Redeem My Home in Illinois?

Most homeowners going through a foreclosure don't have enough money to redeem either before or after a foreclosure. Generally, if you want to keep your home, it is better to take action before the post-sale redemption period (if you even get one). This will give you more options to save the property.

For example, you could pay off the past-due amounts to reinstate (catch up on) the loan. Illinois law says that the borrower may reinstate the loan up to 90 days after the borrower has been:

• served with a summons or by publication, or
• has otherwise submitted to the jurisdiction of the court. (735 Ill. Comp. Stat. § 5/15-1602).

Also, your mortgage contract might give you a certain amount of time to reinstate. And as a practical matter, many lenders allow the borrower to reinstate before the sale. To find out if you can reinstate the loan and the deadline to do so, call your loan servicer.

Foreclosures in Illinois take a long time to complete so you should have sufficient time to explore alternatives to foreclosure before the sale.

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Talk to an Illinois Foreclosure Lawyer

If you're behind in mortgage payments and worried about foreclosure, you might have more options than you think. Consider talking to a foreclosure attorney to learn about alternatives. A lawyer can advise you about loss mitigation options, your legal rights in a foreclosure, and defend you against a foreclosure in court.

Also, consider contacting a HUD-approved housing counselor if you need more information about loss mitigation options or want help with the application process.