Month 1 - Month 3: Notice of Default
After three missed mortgage payments, foreclosure action begins. The sheriff or a process server will serve you the foreclosure complaint by handing you a someone else living in the house over the age of 13, a copy of the foreclosure complaint and summons. If the sheriff cannot locate you or anyone else in the house, the bank will post a notice in the newspaper, this is called service by publication.
Month 3 - Month 5: Reinstatement Period
You have 90 days after you receive the foreclosure complaint to reinstate your mortgage. This right of reinstatement means that you are allowed to repay all the missed mortgage payments, plus all costs and fees. If you can do this, once payment is made the foreclosure case against you is supposed to be dismissed, in many cases the bank fails to dismiss the case.
If not, you will receive a notice of motion for default judgment advising you of the court date. If the bank frustrates your ability to reinstate by refusing to provide accurate reinstatement amounts, or fails to respond to your request to reinstate this is another possible cause of action that can be raised against the bank in the foreclosure action, and comes with possible damages against the bank.
Month 5 to Month 6: Default Judgment & Receivership
On the day of court you may be given more time to hire a lawyer or time to answer or otherwise plead. Failure to answer or otherwise plead, or failure to show on the day of court, could result in a foreclosure judgment and order for sale entered against you. There is no redemption period for commercial transactions.
Lender will most likely seek receivership, or mortgagee in possession. Two different concepts. Although both are liberally granted by the courts, they can however be challenged. There are strict rules that must be complied with by the receivers that if not adhered to may result in revocation of the receivership.
Month 7 to Month 8: Sheriff Sale
Before the foreclosure sale of your property takes place, the mortgage company must:
- Publish a notice of sale in a widely read, local newspaper.
- Notice of the sale date must be sent to Borrower
- The notice must be in the real estate section and should appear at least three weeks in a row.
Month 8 - Month 10: Confirmation of Sale, Deficiency, and Order of Possession
Plaintiff Bank motions the court to finalize and approve the sheriff sale, enter a deficiency judgment against the borrower and take possession of the property. The court will usually grant the bank's motion to confirm the foreclosure sale finalizing the foreclosure process and recently enter deficiencies against the borrowers. The deficiency judgment lasts for 10 years, and is renewable for another 10 years for a total of 20 years.
Unless you challenge the underlying judgment with cause, (which EV Has, LLC has done successfully), and/or prove one of the following:
- Notice of the sale was not proper
- The terms of sale were unreasonable
- The sale was conducted fraudulently
- The lender violated HAMP requirements
If the sale is confirmed an order of possession is granted to the bank, giving the bank authorization to send the Sheriff to evict the borrower from the home.
Month 10 to Month 11: Special Right to Redeem
Commercial transactions generally do not qualify for the special right to redeem.
Month 10 - Month 11: Eviction / Sheriff shows up
The mortgage company will then pass along the order of possession to the Sheriff who will then show up the door and post an eviction notice on the front of the door, and within a few days return to forcibly remove you from the house.
After You Have Left the Property
The foreclosure deed, a written document of foreclosure, becomes public record
DISCLAIMER: The above time periods are purely estimates based on experience and statutory rules of the Illinois Mortgage Foreclosure Act. In some cases the definition of a commercial property is not clear cut and may create sufficient question of fact that will prevent furtherance of the mortgage foreclosure.