Foreclosure and Short Sale Information

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Foreclosure Resources

Illinois Supreme Court Rolls Out New Foreclosure Rules
On Feb. 22, the Illinois Supreme Court announced new rules establishing a uniform protocol when it comes to the foreclosure process. Among the rules outlined in the court's news release:

  • Lenders must provide homeowners with information about the process and consequences of foreclosure.
  • Lenders must seek modifications with eligible homeowners before completing a foreclosure. 
  • Improved legal notices to owners are required throughout the process and before a foreclosure sale.
  • Illinois Circuit Courts with mediation programs would be required to provide resources for HUD-certified consultation, free legal help and language interpretive services to those eligible and in need of them.

Find media coverage of the new rules in the Chicago Tribune article, "New rules to govern Illinois foreclosures," and in the State Journal-Register, "Illinois Supreme Court issues rules on foreclosures."

Short Sales

A “short sale” is an industry term for when the owner of the home does not have enough equity in the property and not enough cash or liquid assets to be able to sell the property, pay off liens and selling expenses (e.g., property taxes, transfer taxes, real estate commissions) and provide a clear title to the purchaser. 

Many consider a “short sale” better in the long run for the homeowner because it avoids foreclosure which will damage a person’s credit score and make it much harder for the owner to buy another home in the future. IAR Short Sale Resources

Neighborhood Stabilization

  • The Neighborhood Stabilization Program is a nationwide effort authorized under the Housing and Economic Recovery Act (HERA) of 2008 providing nearly $4 billion in grants to states and local governments to purchase and redevelop foreclosed and abandoned properties. A second round of funding was approved under the American Recovery and Reinvestment Act of 2009 providing grants to states, local governments and nonprofits on a competitive basis. Learn more.

Help for Homeowners

At-risk homeowners are encouraged to ask a local REALTOR® or a HUD-certified financial counselor:

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Resources for Consumers