ment. Once the specified grace period has passed, however, the homeowner may be subjected to a late fee. This late fee can then be accrued each month the loan goes unpaid. Lenders may also perform property inspections to determine if the home is still occupied and properly maintained.

What are a Homeowner’s Contractual Rights During Foreclosure?

Due to the documents signed when buying a residential property such as a promissory note and mortgage, rights and protections are also granted to the homeowner. 

An Illinois homeowner facing foreclosure will likely have the right to receive a preforeclosure notice. This notice is referred to as a “breach letter”. The letter notifies the homeowner that their loan has defaulted and allows the homeowner time to correct this before a lender can move forward with the foreclosure. 

When homeowners default on their mortgage payments, sometimes the only option for lenders is to initiate foreclosure proceedings. However, this can lead to conflict between lenders and borrowers that may result in property damage, increased expenses, and challenges related to finding a new buyer. Sometimes, it is in the best interest of both lenders and borrowers to consider other options that may prevent the need for foreclosure.

Understanding Illinois Foreclosure Alternatives

When possible, lenders may consider working with homeowners to explore options that can prevent defaulting on payments or otherwise make a foreclosure unnecessary. These options include: