Foreclosure Homes, Chicago IL
In Chicago IL, all the foreclosures are carried out by a court proceeding. By now you should be able to guess that it is going to take an extremely long time for the whole process to be completed. The time period could be a minimum of one year or more.
The process of foreclosure starts when a lender decides to take action against the borrower and approaches the court. The court notice is served to the borrower and the affected parties through a publication and a letter of intimation. The borrower has to respond to the court within 30 days of the notice being served to him, and if he fails to do so, the lender can take the notice one step further and ask for a public auction of the property.
When the court rules against the borrower, the lender could auction the property and recover the loan amount through the sale. The time given legally to the borrower is 30 days from the date of court notice but the borrower has time until three months after the notice to redeem the property. At this time the borrower also has an unspoken right to stop the auction, but he has to bear the costs of court fees and other expenditures incurred due to the proposed sale. This time period for redemption is further extended to 7 months or more because of the delay in court procedures.
A notice of sale is sent to the borrower and all the other parties that have been involved along with the location/address where the auction is being held, with contact information of the concerned person. The property is inspected before the sale and ensured that everything is as it was at the time of purchase. The publication of the advertisement contains information like the date of the auction, time of auction, contact information, address and location, case number or record number and the jurisdiction details.
The first publication comes out before 45 days of the auction and the last publication comes out before 7 days of the auction. In case the sale has to be postponed, appropriate arrangements are made to reschedule the sale. If the sale has to be postponed for a period of 60 days or more, then a fresh notice is served and a new sale notice is posted.
The local sheriff conducts the auctions usually. The winning bidder gets the property and there is no restriction on who can bid in the auction. The lender and even a person from the borrower’s party can participate in the auction. The winning bidder has to pay the full price at the time of auction to receive the certificate of sale. The court confirms the sale after which the property is finalized in the name of the bidder. In case the property is still occupied, the winning bidder gets complete possession within 30 days and is taken care of by the court. The method of foreclosure is different from state to state and while some states in the United States follow the judicial method, some follow non judicial methods while others follow both. Always check the method before you attend an auction.
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