Illinois Deficiency Judgment Law

Illinois is exclusively a judicial foreclosure state.  A deficiency is created when a lender forecloses on a property and receives less than what was owed on the property.  A deficiency judgment is created when a lender sues and gets a judgment on the amount still owed on the loan after the foreclosure.  A deficiency judgment is obtainable in Illinois if the following provisions are met:

  • Following a foreclosure sale, the lender files a motion with the court asking the judge to confirm the sale;
  • At a hearing on the motion the court finds that a) notice was given to the debtor of the hearing, and b) that there was no fraud, unconscionability, or that justice was otherwise not done.  (Illinois Comp. Stat. 5/15-1508).

If these provisions are met, then the confirmation order can provide for a personal judgment against the borrower for a deficiency.  If you live in Illinois and have questions about whether your particular situation might give rise to a deficiency judgment, speak to an attorney in your area for specific guidance.  Or continue searching this site for potential foreclosure options

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