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Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 6577
Experience:  29 years of experience in General Practice, Real Estate Law and Estate Law.
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My home was foreclosed after I was widowed at age 27. I

Customer Question

Hello, my home was foreclosed after I was widowed at age 27. I applied for aid through a modification through HAMP and qualified. I did a significant amount of research of the HAMP procedures and discovered that as Chase was waiting for a document from a Third Party Authority (the IRS) that had been requested they failed to follow HAMP requirements and did not reschedule the auction date of my apartment. Following HAMP guidelines they were required to stay the auction sale and extend the scheduled date by 30 days until the document -- which I only discovered was missing after being erroneously told my application was complete. As such they sold my apartment, for which we had put down a down payment of 20% and which I continued to pay for 12 years on my own as I was simultaneously working on a PhD, despite having lost my insurance due to catching TB while a Fulbright Scholar in Peru.
JA: Since laws vary from place to place, what state is this in? And has any paperwork been filed?
Customer: This was in IL. All the paperwork was filed a long time ago. Further, I submitted all notices of error to which I was entitled, pointing out their egregious mistakes. I appealed in front of a judge who did not seem to understand the intricacies of the case. I believe I also obtained terrible legal counsel.
JA: Has any paperwork been filed?
Customer: Now, I see on my credit report, which I am struggling to repair, that my outstanding 58k of debt reads "Foreclosure Redeemed."
JA: Anything else you want the lawyer to know before I connect you?
Customer: First, there are simple questions I believe you can help me with: namely, what does it mean that my foreclosure was redeemed; second, does this mean that I can have this debt removed from my report as my debt was evidently redeemed?
Submitted: 2 months ago.
Category: Real Estate Law
Expert:  Attyadvisor replied 2 months ago.

Welcome and thank you for your question. I will be the professional that will be assisting you.

Expert:  Attyadvisor replied 2 months ago.

There is a redemption period in Illinois where you can bring all of your past due payments up to date and receive your property back. Let me pull up the law.

Expert:  Attyadvisor replied 2 months ago.

"A redemption period is the legal right of any mortgage borrower in foreclosure to pay off the total debt, including the principal balance, plus certain additional costs and interest, in order to reclaim the property. In Illinois, the sale may not be held until after the expiration of the redemption period.

The redemption period for residential properties expires at the later of either:

  • seven months after the complaint is served, or
  • three months from the date of judgment.

(If the property has been abandoned, the redemption period can be reduced to 30 days from the date of judgment.)

Additionally, there is a 30-day special right to redeem following the date the sale is confirmed if:

This is the statute:

"§ 15-1603.  Redemption.  (a) Owner of Redemption.  Except as provided in subsection (b) of Section 15-1402, only an owner of redemption may redeem from the foreclosure, and such owner of redemption may redeem only during the redemption period specified in subsection (b) of Section 15-1603 and only if the right of redemption has not been validly waived.

(b) Redemption Period.

(1) In the foreclosure of a mortgage of real estate which is residential real estate at the time the foreclosure is commenced, the redemption period shall end on the later of (i) the date 7 months from the date the mortgagor or, if more than one, all the mortgagors (A) have been served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.

(2) In all other foreclosures, the redemption period shall end on the later of (i) the date 6 months from the date the mortgagor or, if more than one, all the mortgagors (A) have been served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.

(3) Notwithstanding paragraphs (1) and (2), the redemption period shall end at the later of the expiration of any reinstatement period provided for in Section 15-1602 or the date 60 days after the date the judgment of foreclosure is entered, if the court finds that (i) the value of the mortgaged real estate as of the date of the judgment is less than 90% of the amount specified pursuant to subsection (d) of Section 15-1603 and (ii) the mortgagee waives any and all rights to a personal judgment for a deficiency against the mortgagor and against all other persons liable for the indebtedness or other obligations secured by the mortgage.

(4) Notwithstanding paragraphs (1) and (2), the redemption period shall end on the date 30 days after the date the judgment of foreclosure is entered if the court finds that the mortgaged real estate has been abandoned.  In cases where the redemption period is shortened on account of abandonment, the reinstatement period shall not extend beyond the redemption period as shortened.

(c) Extension of Redemption Period.

(1) Once expired, the right of redemption provided for in Sections 15-1603 or 15-1604 shall not be revived.  The period within which the right of redemption provided for in Sections 15-1603 or 15-1604 may be exercised runs independently of any action by any person to enforce the judgment of foreclosure or effect a sale pursuant thereto.  Neither the initiation of any legal proceeding nor the order of any court staying the enforcement of a judgment of foreclosure or the sale pursuant to a judgment or the confirmation of the sale, shall have the effect of tolling the running of the redemption period.

(2) If a court has the authority to stay, and does stay, the running of the redemption period, or if the redemption period is extended by any statute of the United States, the redemption period shall be extended until the expiration of the same number of days after the expiration of the stay order as the number of days remaining in the redemption period at the time the stay order became effective, or, if later, until the expiration of 30 days after the stay order terminates.  If the stay order terminates more than 30 days prior to the expiration of the redemption period, the redemption period shall not be extended.

(d) Amount Required to Redeem.  The amount required to redeem shall be the sum of:

(1) The amount specified in the judgment of foreclosure, which shall consist of (i) all principal and accrued interest secured by the mortgage and due as of the date of the judgment, (ii) all costs allowed by law, (iii) costs and expenses approved by the court, (iv) to the extent provided for in the mortgage and approved by the court, additional costs, expenses and reasonable attorneys' fees incurred by the mortgagee, (v) all amounts paid pursuant to Section 15-1505 and (vi) per diem interest from the date of judgment to the date of redemption calculated at the mortgage rate of interest applicable as if no default had occurred;  and

(2) The amount of other expenses authorized by the court which the mortgagee reasonably incurs between the date of judgment and the date of redemption, which shall be the amount certified by the mortgagee in accordance with subsection (e) of Section 15-1603.

(e) Notice of Intent to Redeem.  An owner of redemption who intends to redeem shall give written notice of such intent to redeem to the mortgagee's attorney of record specifying the date designated for redemption and the current address of the owner of redemption for purposes of receiving notice.  Such owner of redemption shall file with the clerk of the court a certification of the giving of such notice.  The notice of intent to redeem must be received by the mortgagee's attorney at least 15 days (other than Saturday, Sunday or court holiday) prior to the date designated for redemption.  The mortgagee shall thereupon file with the clerk of the court and shall give written notice to the owner of redemption at least three days (other than Saturday, Sunday or court holiday) before the date designated for redemption a certification, accompanied by copies of paid receipts or appropriate affidavits, of any expenses authorized in paragraph (2) of subsection (d) of Section 15-1603.  If the mortgagee fails to serve such certification within the time specified herein, then the owner of redemption intending to redeem may redeem on the date designated for redemption in the notice of intent to redeem, and the mortgagee shall not be entitled to payment of any expenses authorized in paragraph (2) of subsection (d) of Section 15-1603.

(f) Procedure for Redemption.

(1) An owner of redemption may redeem the real estate from the foreclosure by paying the amount specified in subsection (d) of Section 15-1603 to the mortgagee or the mortgagee's attorney of record on or before the date designated for redemption pursuant to subsection (e) of Section 15-1603.

(2) If the mortgagee refuses to accept payment or if the owner of redemption redeeming from the foreclosure objects to the reasonableness of the additional expenses authorized in paragraph (2) of subsection (d) of Section 15-1603 and certified in accordance with subsection (e) of Section 15-1603, the owner of redemption shall pay the certified amount to the clerk of the court on or before the date designated for redemption, together with a written statement specifying the expenses to which objection is made.  In such case the clerk shall pay to the mortgagee the amount tendered minus the amount to which the objection pertains.

(3) Upon payment to the clerk, whether or not the owner of redemption files an objection at the time of payment, the clerk shall give a receipt of payment to the person redeeming from the foreclosure, and shall file a copy of that receipt in the foreclosure record.  Upon receipt of the amounts specified to be paid to the mortgagee pursuant to this Section, the mortgagee shall promptly furnish the mortgagor with a release of the mortgage or satisfaction of the judgment, as appropriate, and the evidence of all indebtedness secured by the mortgage shall be cancelled.

(g) Procedure Upon Objection.  If an objection is filed by an owner of redemption in accordance with paragraph (2) of subsection (f) of Section 15-1603, the clerk shall hold the amount to which the objection pertains until the court orders distribution of those funds.  The court shall hold a hearing promptly to determine the distribution of any funds held by the clerk pursuant to such objection.  Each party shall pay its own costs and expenses in connection with any objection, including attorneys' fees, subject to Section 2-611 of the Code of Civil Procedure.

(h) Failure to Redeem.  Unless the real estate being foreclosed is redeemed from the foreclosure, it shall be sold as provided in this Article.

- See more at: http://codes.findlaw.com/il/chapter-735-civil-procedure/il-st-sect-735-5-15-1603.html#sthash.P9igasPc.dpuf

Expert:  Attyadvisor replied 2 months ago.

Did you redeem the property within the period set out above?

“Illinois law gives you a certain amount of time to “redeem” your home by paying off the full amount of the loan, plus various costs. You can redeem the home before it is sold at a foreclosure sale, as well as after the sale (if the lender is the purchaser). However, you should also be aware that the redemption period can be shortened, in certain circumstances.

In a nutshell, here are the rules (which are explained in more detail below):

  • General right to redeem. You can redeem the home up until seven months after you receive the foreclosure summons or three months after the court enters a judgment of foreclosure, whichever is later.
  • Special right of redemption. If the lender (or subsequent owner of the loan) purchases the home at the foreclosure sale and the sale price was less than the total amount you owed, then you have 30 days after the court confirms the sale to redeem.
  • Reduced redemption period for some situations. The court can reduce the redemption period under certain circumstances, such as if you abandon the home.

When You Can Redeem Your Home Before the Foreclosure Sale

Illinois foreclosures are judicial, which means the lender must file a lawsuit in court to foreclose your home. After the lender gets a judgment for foreclosure from the judge, your home will be sold at a foreclosure sale…
In Illinois, you can redeem your home until the later of:

  • seven months after you receive the summons of the foreclosure action (or are served by publication if the lender is unable to serve you the foreclosure papers personally) or
  • three months after the date that the court enters the judgment of foreclosure (735 Ill. Comp. Stat. 5/15-1603(b)(1)).

The foreclosure sale may not be held until after this redemption period expires.

In order to redeem, you must pay the amount specified in the judgment (including principal, interest, fees, and costs), plus any additional expenses incurred between the date of judgment and the date of redemption (735 Ill. Comp. Stat. 5/15-1603(d)).

When You Can Get Your Home Back After a Foreclosure Sale in Illinois

You get a special right to redeem for 30 days after the court confirms the foreclosure sale if:

  • the lender purchases the home at the foreclosure sale, and
  • the sale price was less than the total amount you owe, including principal, interest, fees, and costs (735 Ill. Comp. Stat. 5/15-1604(a)).

To get your home back through the special right of redemption, you’ll have to pay the foreclosure sale price plus interest and costs (735 Ill. Comp. Stat. 5/15-1604).

Redemption Period for Abandoned Homes

If the court finds that you abandoned the home (left it), the redemption period expires 30 days after the foreclosure judgment date (735 Ill. Comp. Stat. 5/15-1603(b)(4)).

Other Circumstances When the Redemption Period Can Be Shortened

The redemption period can also be shortened if:

  • the value of the home on the judgment date is less than 90% of the amount required to redeem, and
  • the lender waives the right to a deficiency judgment (735 Ill. Comp. Stat. 5/15-1603(b)(3)),,,
  • Under these circumstances, the redemption period will be reduced to 60 days after the foreclosure judgment date, or the expiration of any reinstatement period (learn about reinstatement in foreclosure), whichever is later.

How to Redeem Your Home

To redeem the house, you must give written notice of your intent to redeem to the lender’s attorney at least 15 days (excluding weekends and holidays) prior to your proposed date of redemption. (Be sure to specify the date of redemption and your current address in the notice.) You must also file a certification with the court stating that you gave the notice.

Then, at least three days (excluding weekends and holidays) before the redemption date, the lender must file a certification with the clerk of the court regarding any additional costs it incurred between the judgment and the date of your proposed redemption and provide you with a copy (735 Ill. Comp. Stat. 5/15-1603(e),(f)). You can then pay the total redemption amount (the amount in the judgment plus the lender's additional costs) to the lender or the lender’s attorney.

If Possible, Don’t Wait Until the Redemption Period to Save Your Home

In most cases if you want to keep your home, it is better to take action before the redemption period. This will give you more options to save the property. For example, you could pay off the past-due amounts to reinstate (catch up on) the loan.,,

To find the statutes that discuss your right to redeem the home in Illinois, go to Chapter 735 (Code of Civil Procedure), Article XV, of the Illinois Compiled Statutes." http://www.nolo.com/legal-encyclopedia/if-i-lose-home-foreclosure-illinois-can-i-back.html

Expert:  Attyadvisor replied 2 months ago.

I am not receiving any responses from you.

Please do not hesitate to ask me any additional questions that you may have with regard to this matter.

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Expert:  Attyadvisor replied 2 months ago.

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