Most people are familiar with at least the basic idea of foreclosure. They know that if a homeowner falls behind far enough on his or her mortgage payments, the proverbial “bank” will eventually take the home. Far fewer people, however, understand the reality that foreclosure is a fairly involved process and that, according to Illinois law, the process must be handled through the court system. As such, all foreclosures in the state of Illinois are considered judicial foreclosures.
Non-Judicial Foreclosures in Other States
Illinois is one of 16 states in which the law requires court participation in the foreclosure process. Five others generally use judicial foreclosures as a matter of custom or convenience. In the remaining 29 states, non-judicial foreclosure is the method of choice, either as an available option or because judicial foreclosure is prohibited by law.
When judicial foreclosure is not required, the mortgage agreement may include a clause that gives the lender the “power of sale.” A power of sale clause grants the lender the ability to foreclose on the property on its own. If the borrower fails to keep up with the payments prescribed in the mortgage contract, the lender has the right to sell the property to recover the balance of the loan. Power of sale clauses are not enforceable in Illinois.
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