Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Illinois, foreclosure is a judicial process that begins when a homeowner defaults on their mortgage payments. The lender, typically a bank, may file a lawsuit in court to terminate the homeowner's interest in the property, which was used as collateral for the mortgage loan. The process is governed by Illinois state statutes, specifically the Illinois Mortgage Foreclosure Law (735 ILCS 5/15-1101 et seq.). This law outlines the procedures and requirements for foreclosures, including the issuance of a notice of default to the homeowner, a reinstatement period, and the right to redemption. If the court rules in favor of the lender, the property can be sold at auction. The homeowner has the right to be notified of the foreclosure proceedings and may have the opportunity to contest the foreclosure in court. It is important for homeowners facing foreclosure in Illinois to seek advice from an attorney to understand their rights and any potential defenses they may have.