Illinois Foreclosure Laws: Right of Redemption

Reinstatement and Redemption Rights

• Homeowners who would like to avoid foreclosure and have the ability to pay the entire balance remaining on the loan can utilize the right of redemption to save their homes. The reinstatement period also occurs before the foreclosure sale. However, during the reinstatement period, homeowners are only required to pay the past-due balance. The reinstatement period is 90 days after the foreclosure complaint is filed. The right to redeem runs concurrent with the reinstatement period. A lump sum payment is required if you choose to exercise either right.
  
  

Length of Redemption Right

• The redemption period is either seven months from the time the foreclosure complaint is filed or three months from the time a final judgment is entered, whichever is later. If the home is abandoned, the redemption period can be shortened to just 30 days. The foreclosure sale cannot occur until the redemption period expires. Homeowners can only exercise their reinstatement and redemption rights once every five years.
  
  

Waiving the Redemption Right

• Homeowners can waive their right to redemption if the lender agrees to waive the right to a deficiency judgment. A deficiency judgment is the difference between the sale price of a home and the balance the homeowner owes. If a deficiency judgment is granted, the lender has permission to collect the money by any legal means, including levying assets and garnishing wages. If you do not have the funds needed to redeem the home, you may want to consider waiving your right to escape a future judgment. The homeowner and lender must file written consent waiving their rights.
  
  

Exercising the Redemption Right

• If you intend to redeem your home, Illinois law requires you to file a notice of the intent to redeem with the court five days before exercising your right. Your intent must provide proof of adequate funds. The redemption price includes the amount of the loan plus attorney fees, court costs, outstanding insurance and taxes and other related fees. The exact amount owed is specified in the foreclosure judgment. Payment is made directly to the clerk court.