Is Illinois a recourse state?

Illinois is a recourse state. That means mortgage companies have recourse; they can recover the deficiency from the homeowner, even after the house is lost to foreclosure sale. Illinois is also a judicial foreclosure state.

Can I buy a house 6 months after Chapter 7?

The U.S. Department of Housing and Urban Development (HUD) requires borrowers to wait two years from discharge of a chapter 7 bankruptcy before they can qualify for an Federal Housing Administration (FHA) mortgage. The waiting period can be as little as one year if you can document extenuating circumstances.

How long after bankruptcy can you buy something?

Generally, you must wait: Two years after filing for Chapter 7 bankruptcy for FHA loans and VA loans. Three years after filing for Chapter 7 bankruptcy for USDA loans. One year after Chapter 13 for FHA loans, VA loans, and USDA loans.

Does Illinois have deficiency Judgements?

Generally, the deficiency amount is the difference between the home’s fair market value and the total mortgage debt. But Illinois law prohibits a deficiency judgment unless the borrower agrees to remain liable by signing an agreement at the same time as the deed in lieu.

How long can you live in a foreclosed home in Illinois?

How Long Do You Have to Move Out After Foreclosure in Illinois? You (the foreclosed homeowner) can stay in the home for 30 days after the court confirms the sale.

Does Illinois have a redemption period?

Subject to a few limited exceptions, you have 7 months from the date you are served to pay off your loan in full, either by refinancing the loan or by selling the house or by other means. This is called your right to redeem, and the 7-month period is called the redemption period.

Can you buy a house after Chapter 7 with a co signer?

Can you buy a house after Chapter 7 with a co-signer? Yes, having a co-signer can improve your chances of getting a mortgage after a bankruptcy.

How soon can you buy a house after Chapter 13?

If you want to buy a house after Chapter 13 discharge, there’s no waiting period for an FHA, VA, or USDA loan (provided you meet loan requirements). For a conventional loan, there’s a 2-year waiting period after Chapter 13 discharge.

How do you get rid of deficiency balance?

When a deficiency balance is owed, the lender can take certain steps (including legal action) to claim the remaining debt. You may be asked to pay your deficiency balance in a lump sum, but if you don’t have the money, you can try working with the lender and come up with an affordable repayment option.

How long does a lender have to file a deficiency Judgement in Illinois?

Other states limit set time limits for how long lenders get to seek a deficiency judgment against a borrower, typically ranging from three months to one year after the foreclosure sale. (To find out the time limit in your state, talk to a foreclosure lawyer.)

Is there a hold on foreclosures in Illinois?

Illinois (judicial foreclosure) Extends moratorium on residential evictions until May 1, 2021 (previously extended to April 1, 2021 by Executive Order 2021-05 (March 5, 2021). Re-issues and extends eviction restriction of Executive Order 2020-30 through November 14, 2020.