For most people, their biggest financial investment involves buying a home. However, a change in your finances could cause you to fall behind in your payments. If you fail to meet your mortgage obligations, your mortgage lender could foreclose on your home.
Steps leading up to the foreclosure
Foreclosure does not occur because you made a mortgage payment a few days after the due date. The steps involved leading up to foreclosure include:
- After 15 days, your grace period ends, and your lender adds a late fee.
- After 30 to 60 days, your lender will send notices and letters of demand to instruct you to pay the total amount due.
- After 120 days, your lender may go to Common Pleas Court and file a Complain for Foreclosure
Letters of demand
Mortgage companies in Illinois must wait 120 days before they file a Complaint of Foreclosure. During that 120 days, you will receive letters of demand. The lender must send at least one letter of demand before they can foreclose on the home.
To comply with Illinois law, the letter must include the following:
- A notice of default
- The actions you could take to remove the default
- Notice that failure to resolve can result in foreclosure and a property sale
Response to foreclosure
After the lender files a Complaint of Foreclosure, homeowners have the right to respond. You may choose a foreclosure defense in which you argue against the lender’s right to foreclose on the home. Common tactics used in a foreclosure defense include arguing the validity of the lender’s ownership and proving violations of the Truth in Lending Act.
People often express fear of the foreclosure experience. Fortunately, you may find a way to rebuild your financial future after foreclosure.