Right to Redemption in an Arlington Heights Foreclosure

The state of Illinois is a judicial foreclosure state, meaning the lender must avail itself of the court system in order to reclaim a property upon which debt is owed. On average, the entire foreclosure process – from the initial filing of the complaint to eviction by the sheriff - can take approximately nine months, however, foreclosure defense may prolong the foreclosure process as much as 24 months. A owner facing foreclosure of their residence or commercial property may face not only the loss of the property but also personal liability for any amount owed above and beyond the foreclosure sale price, loss of any equity built in the property over the years, and a negative impact on the owner’s credit history.

Right of Redemption

Illinois state law provides the owner of a foreclosed property the right to redeem even after the bank has obtained a judgment against the owner. In order to exercise the right of redemption a homeowner must pay all the fees relating to the subject property, which often includes the principal and interest owed to the lender as well as any amounts relating to court costs, attorney’s fees, and collections. State law affords a homeowner the opportunity to exercise the right of redemption, known as the redemption period. These statutory time limitations depend on whether or not the real estate is residential and the redemption period can be shortened under certain circumstances, such as when the property is deemed abandoned or when the value of the property on the date of judgment is less than 90 percent of the redemption amount and the lender has waived any and all rights to a deficiency judgment.

For residential property, the right of redemption may be exercised by the borrower within three months after the date of the entry of judgment by the court or within seven months of service with summons or by publication, whichever is later.

For non-residential property, the right of redemption may be exercised by the borrower within three months after the date of entry of judgment by the court or within six months of service with summons or by publication, whichever is later.

State law guarantees the right of redemption for residential properties – meaning any attempt to waive the right by contract is deemed null and void. Owners of non-residential, or commercial, properties do not have this protection and mortgages on these types of properties often have an express provision waiving the right of redemption. If the home has not yet gone into foreclosure, it is best to contact the lender immediately and attempt to negotiate a way to become up to date on the loan. Once the foreclosure process has been initiated, it is imperative for the homeowner to decide whether or not keeping the property is a viable option based on a pragmatic assessment of current finances. Options available may include redemption, short sale, deed in lieu of foreclosure, loan modification or bankruptcy, among others.

Contact an Experienced Foreclosure Attorney

An experienced Illinois foreclosure attorney can provide a homeowner with legal advice on rights and obligations relating to the property and may be able to exercise the right of redemption on an owner’s behalf, if it’s still available under the law. Contact the Law Offices of Gilbert C. Schumm at (847) 559-9109 to schedule your initial consultation. With over 35 years of experience, our firm’s foreclosure attorneys will be adamant in protecting homeowners’ rights during the foreclosure process. Our firm services clients in Arlington Heights, Mt. Prospect, Hoffman Estates, and Hanover Park areas.