Foreclosure/Eviction Notice Questions?

Question

Our house is in foreclosure or has been foreclosed...not sure of specific term. We haven't received anything from the county giving us the auction date but we had the house on the market to try to do a short sale (no luck) & our realtor told us 7/17/08 was the date. It was also listed in the paper.

We talked to a lawyer who stated in our county auctions are only held Tuesdays & Wednesdays so the auction would have been held 7/22 or 7/23. We still haven't received anything & today is the 23rd.

We live in Illinois were the law states we have 30 days from the auction date to be out of the house. We already have a rental & are moving the weekend of 8/1.

My question is, when & how will we get the eviction notice? Because we're moving, do we lock up the house & leave the keys inside?

Also, I was told by the lawyer that if we will be served with a deficiency notice we'll know pretty much right away. Is this true? I don't want to be surprised a year from now!

Thanks for your help

Answer 1

Generally the mortgage company will hire a property manager to come by the house and knock on the door.  If you have not moved out they will negotiate a time frame by which you can leave the property.  This is known as "cash for keys".  The sooner you get out the more money you get.

If you choose not to play ball with the mortgage company they will file for a forcible detainer and the sheriff will come and remove you from the property.  (I'd suggest the cash for keys method.)

Illinois Revised Statute Sec. 15-1504(f) is the law regarding Deficiency Judgments in Illinois.  There is no mention of time frame in the statute.  It does not appear that the bank has to file a separate lawsuit to obtain the judgment, so you may not even be notified of the judgment.

Mr. Financial Freedom

http://www.5stepstofinancialfreedom.com

Answer 2

If your house is in foreclosure then your lender should have notified you with a "Notice of Default" indicating you are in foreclosure.  They will mail this to you as well as have it personally delivered to your home.

This is recorded at the county court in which the property is located. The lender will also be required to publish the foreclosure notice in a local newspaper.

After 90 days and if you have taken no action the lender at his discretion will then issue a "Notice of Sale" this will indicate the sale date of your property as well as the place the sale will take place.

The above procedure is for a non-judicial foreclosure and will things sort of automatically happen. If the lender use this procedure there is not normally a judgment after the sale. You also do not have the right to a redemption of your property.

If the lender use the judicial foreclosure procedure then they take you to court. You will be given a court date to appear. After the procedure is complete the court will set a sale date. Under this procedure the lender is allowed to go after you for a judgment. You also would be able to redeem your property over a period of time.  

Any docmentaton about the sale of the property would come from your lender or the professionals they are using for the foreclosure,and not the county.

The county only record what the lender give them to record and take no action nor is involved in the procedure at all.

If the sale take place and someone at the auction purchase the property you will be notified of that.

If the property is not sold at the auction, after all the legal documents have been recorded the lender normally hire a property manager or a real estate firm to sell the property for them. One of these people representing the lender will contact you to find out when you will be moving.

This could take awhile after the sale.

I hope this has been of some use to you,good luck.

"FIGHT ON"