Facing Foreclosure in Chicago? Know Your Options

Behind on your mortgage in Chicago? Start here

Falling behind on a mortgage is stressful, and the court papers that follow can be hard to read. Illinois is a judicial foreclosure state: the lender has to sue you in the Circuit Court of Cook County, and your home can’t be sold until a judge enters a judgment and the reinstatement and redemption periods have run. That process gives you time to act. It isn’t free time, though. Interest, late charges and the lender’s legal fees usually keep adding to what you owe, and every month comes out of the equity you could keep.

This guide walks through each stage of a Chicago foreclosure, what you can still do at each one, and how a cash sale to Trusty House Buyers works if you decide selling is the best way out. It is general information, not legal advice. A free Cook County housing counselor or an Illinois attorney can tell you exactly where your case stands.

The Illinois foreclosure process, stage by stage

1. Missed payments and the 120-day mark

Under the federal mortgage servicing rules (Regulation X, 12 C.F.R. § 1024.41(f)), most servicers can’t make the first foreclosure filing until the loan is more than 120 days delinquent. This is the easiest time to fix the problem. Catching up, applying for a modification or selling is simplest before a case is ever filed.

2. The lawsuit and the Homeowner Notice

Chicago foreclosures are filed in the Mortgage Foreclosure section of the Chancery Division of the Circuit Court of Cook County, at the Richard J. Daley Center. Illinois law (735 ILCS 5/15-1504.5) requires the lender to attach a notice in English and Spanish to the summons, titled “Important Information for Homeowners in Foreclosure.” It tells you that:

• the lawful occupants can live in the home until a judge enters an eviction order, and you continue to own it until the court rules otherwise;
• you can bring the mortgage current within 90 days after you receive the summons;
• you can sell the home, refinance or pay off the loan during the redemption period;
• you can ask the court for any surplus money left after a foreclosure sale;
• your servicer must send a written payoff statement within 10 business days of a written request that includes your name, the property address and the loan number, and the first one is free.

The summons also gives a deadline to file your appearance and answer. Don’t ignore it. If you miss it, the lender can ask for a default judgment.

3. Free mediation and counseling in Cook County

Cook County homeowners who have received a foreclosure summons and live in the home (1-4 units) can call the Mortgage Foreclosure Mediation Program helpline at (855) 452-2637 for free housing counseling, legal advice and mediation with the lender. If you’re behind but haven’t been sued yet, or you’re behind on property taxes, Cook County Legal Aid for Housing and Debt takes calls at (855) 956-5763. Both are free regardless of income. A sale is one of the outcomes mediation can work toward, so bring any purchase offer you have.

4. The 90-day reinstatement period

Under 735 ILCS 5/15-1602 you can reinstate the mortgage by curing the missed payments and paying the costs and fees the mortgage requires, as long as you do it within 90 days after you (and every other borrower) were served or otherwise appeared in the case. The case is then dismissed and the loan continues as if there had been no default. If the court makes a written finding that you reinstated, you can’t use the right again on the same mortgage for five years.

5. The redemption period

For a home that was residential when the case was filed, 735 ILCS 5/15-1603 sets a redemption period that ends on the later of 7 months after all borrowers were served (or appeared) or 3 months after the judgment of foreclosure. Until then you can pay off the full amount of the judgment, or sell the house and have the payoff made at closing. The period can be much shorter if the lender convinces the court the property is abandoned (735 ILCS 5/15-1505.8), so a vacant house is a bigger risk.

6. Judicial sale, confirmation and possession

After the redemption period, the property is sold at a judicial sale, in person or online, by the sheriff or another officer the court appoints. Notice of the sale has to be published for three consecutive weeks beforehand (735 ILCS 5/15-1507). The court then holds a hearing to confirm the sale (735 ILCS 5/15-1508), and the confirmation order can include a personal deficiency judgment if the sale didn’t cover the debt. If the lender itself bought the house for less than you owed, you have a special right to redeem for 30 days after confirmation (735 ILCS 5/15-1604). The buyer is generally entitled to possession 30 days after the confirmation order (735 ILCS 5/15-1701). If the sale brings in more than is owed, the surplus is held until a party gets a court order for it (735 ILCS 5/15-1512), so file a claim rather than walking away from it.

Your options, from keeping the house to selling it

Option	Best when	Watch out for
Reinstate within 90 days	The hardship is over and you can pay the missed payments, fees and costs.	The deadline runs from the date you were served. Get the reinstatement figure in writing.
Loan modification or workout	You want to stay and can afford a payment the lender will approve.	It takes documents and follow-up. The Cook County mediation program and HUD-approved counselors help for free; nobody should charge you upfront.
Sell with a real estate agent	The house shows well, there is equity after costs, and you have months before the redemption period ends.	Repairs, showings, buyer financing and inspections all take time you may not have.
Short sale	You owe more than the house is worth.	The lender must approve the price, which can take months. Ask an attorney whether a deficiency can still be pursued.
Deed in lieu of foreclosure	There is little or no equity and you want to hand the house back.	The lender has to agree, and second mortgages or other liens can block it.
Sell as-is for cash	The house needs work, has tenants, or the deadline is close and you want a certain closing date.	A cash offer is usually below full retail value. Compare it with what you’d net after repairs, months of interest and fees.

Bankruptcy can also pause a foreclosure, but it has long-term consequences, so talk it through with a bankruptcy attorney first.

Your rights when you sell a house in foreclosure to an investor

Illinois protects homeowners from equity-skimming schemes through the Mortgage Rescue Fraud Act (765 ILCS 940). It covers a “distressed property,” meaning a 1-6 unit home that is in foreclosure, at risk of loss for unpaid taxes, or more than 30 days behind on a loan it secures, when a buyer who solicited the owner acquires it. Under the Act:

• The deal must be in a written contract in at least 12-point bold type, in the language you used to negotiate, signed by both sides and notarized before any deed is signed (Section 25).
• The contract has to state the buyer’s name, address and phone, the total price and payment terms, and the full terms of any lease-back or buy-back, plus a notice that says “As part of this transaction, you are giving up title to your home” (Section 30).
• You can cancel, without penalty, until midnight of the fifth business day after you sign, or until 8:00 a.m. on the last day of your redemption period if that comes first. The deadline must be printed next to your signature, with a detachable cancellation form (Sections 35 and 40).
• Until the cancellation period ends, the buyer can’t accept or ask you to sign a deed, or record anything you signed. The buyer also can’t use a quitclaim deed, act through a power of attorney, claim to be your advisor or to be “saving” your house, and the closing has to happen before a notary at a licensed title company, a bank or an attorney’s office (Section 50).
• The buyer must pay off or take responsibility for the liens on the house, and the Act sets minimum-payment rules tied to fair market value and limits on buy-back prices for these deals (Section 50). You can waive the cancellation period only if the foreclosure sale is within five business days, in a handwritten statement signed by everyone on title (Section 45).
• If the house is at risk of a tax loss, the contract must also tell you that you may have a right to money for lost equity if a tax deed is issued, that selling gives up that claim, and that you should talk to an attorney first (Section 30, as amended effective July 10, 2026).

The practical effect for a Chicago homeowner in foreclosure: allow at least a week for the cancellation period before closing, plus time for title work, the lender’s payoff letter and the city water certificate described below. Treat anyone who asks you to sign a deed on the spot, or to pay a fee upfront to “save” your house, as a red flag. You can always have your own attorney review any contract, including ours.

Cook County property taxes and the tax sale

Unpaid property taxes are a separate path to losing a house, and they can catch owners whose mortgage is paid off. Illinois taxes are paid a year in arrears. When a Cook County parcel’s taxes for the prior year are delinquent, the Cook County Treasurer offers the unpaid amount, with interest and penalties, at the Annual Tax Sale. The Treasurer currently expects to hold the next Annual Tax Sale in December 2026; it was delayed from August 2025 by Public Act 104-0460. Properties with three or more delinquent years can also be offered at a Scavenger Sale if the County Board orders one.

If your taxes were sold, you redeem them through the Cook County Clerk (118 N. Clark St., Room 434, 312-603-5656) by ordering an Estimate of Redemption and paying it. The Treasurer’s office advises doing this as quickly as possible, because the amount grows. The time you have is set by 35 ILCS 200/21-350 and depends on the property type and when the taxes were sold; if it runs out, the tax buyer can ask the court for a tax deed. A sale of the house can pay the delinquent taxes or the redemption amount from the proceeds at closing, as long as it closes in time.

Chicago situations that make foreclosure harder

• Two-flats and small buildings with tenants. Leases and security deposits carry over to a buyer. If the building goes all the way through foreclosure, Chicago’s Keep Chicago Renting Ordinance requires the new owner to notify tenants within 21 days and either offer a new lease or pay $10,600 in relocation assistance. Read our guide to selling a house with tenants.
• Vacant houses. Chicago’s building code requires the owner of a vacant building to register it with the Department of Buildings within 30 days, keep it secured and insured, and renew the registration every six months. An empty house also invites the abandonment fast track described above.
• An unpaid water bill. Every Chicago sale needs a Full Payment Certificate from the Department of Finance, which confirms the water and sewer account is paid. Without it, the city transfer tax stamps needed to record the deed can’t be issued, so any balance is usually paid from the sale proceeds.
• A parent’s house in foreclosure. When the borrower has died, someone usually needs authority from the Probate Division of the Circuit Court of Cook County before a sale contract can be signed. See our inherited and probate house guide.
• Older houses needing major work. Porches, tuckpointing, old boilers and sewer lines can make a house hard to sell to a buyer with a mortgage on a short timeline. We buy as-is.

How a sale to Trusty House Buyers works in foreclosure

• Tell us the dates. Share the summons, the case number and any mediation or sale date. We’ll be upfront if the timeline looks too tight for a sale.
• Get a written cash offer. We buy as-is: no repairs, no clean-out, no showings and no agent commissions.
• Contract and the cancellation period. If Illinois’ distressed-property rules apply, you get the full cancellation period before any deed is signed or recorded.
• Payoff at closing. A title company or attorney orders the payoff from your servicer and pays the mortgage, delinquent taxes, the water bill and other liens from the sale, and the foreclosure case is dismissed. Whatever equity is left is yours.

What to gather

• Your most recent mortgage statement and any letters from the servicer
• The summons, complaint and Homeowner Notice, with the case number, and any mediation or court dates
• Your Cook County property tax bills, the Property Index Number (PIN), and any tax sale or redemption notices
• Your City of Chicago water account number and latest bill
• Leases, rent records and security deposit information, if the property is rented
• Contact details for every person on the deed

Related guides

Sources: Illinois Mortgage Foreclosure Law, 735 ILCS 5/15-1504.5, 15-1505.8, 15-1507, 15-1508, 15-1512, 15-1602, 15-1603, 15-1604 and 15-1701; Mortgage Rescue Fraud Act, 765 ILCS 940/5, 25, 30, 35, 40, 45, 50 and 55; Property Tax Code, 35 ILCS 200/21-350 (Illinois General Assembly, ilga.gov); 12 C.F.R. § 1024.41(f) (Regulation X); Circuit Court of Cook County, Chancery Division and Mortgage Foreclosure Mediation Program pages; Cook County Legal Aid for Housing and Debt; Cook County Treasurer, Tax Sale General Information and “If Your Taxes Were Sold”; City of Chicago Department of Housing (Keep Chicago Renting), Department of Buildings (vacant buildings) and Department of Finance (Full Payment Certificates). Checked October 30, 2026. This is general information, not legal advice. Talk with an Illinois attorney or a free housing counselor about your situation.