If you're a homeowner in Illinois facing the scary prospect of losing your home to foreclosure, don’t be caught off guard.

In Illinois, foreclosures are judicial, which means the lender (the plaintiff) must file a lawsuit (a complaint) in state court. The complaint is served to the borrower, along with a summons that typically provides 30 days for the borrower to file an answer.

If you don't respond to the court action within the specified amount of time, the lender can get a default judgment from the court. On the other hand, if you file an answer, the lender can't get a default judgment. Instead, the lender will either:

• file a motion for summary judgment or
• go to trial.

If the court grants summary judgment for the lender or you lose at trial, the judge will order the home sold at a foreclosure sale.

First, you need to wait until a judge discharges your bankruptcy before you can get a loan. But exactly how long do you need to wait? The answer depends on the type of bankruptcy you have on your record and the type of loan you want.

Chapter 7

The most common type of bankruptcy is Chapter 7 bankruptcy. During a Chapter 7 bankruptcy, a court wipes away your qualifying debts. Unfortunately, your credit will also take a major hit.

If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan.

Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan. To qualify for a VA or FHA loan, you only need to wait 2 years after your discharge or dismissal.

First, you need to wait until a judge discharges your bankruptcy before you can get a loan. But exactly how long do you need to wait? The answer depends on the type of bankruptcy you have on your record and the type of loan you want.

Catch Up On Missed Payments

The first is to get out of preforeclosure by catching up on all your missed payments. If you can do this, and pay any late fees or other penalties, and continue to make regular payments throughout the life of the loan, most lenders will stop the preforeclosure process.

Consider Loan Modification

Another option is to do a loan modification. This can be a refinance of your property, but ultimately means that you go to your lender and have them rewrite your loan. This option will likely extend the life of your loan, but by spreading out the payments over more years, it will also give you more affordable payments.

Try A Short Sale

You also have the option to sell your home during preforeclosure. Most lenders will accept a short sale if you’re in preforeclosure. A short sale is when you can’t sell your home for more than what is left on your loan. Banks agree to this because it saves them the time and expenses it takes to foreclose on a property, and it allows you to take control of the preforeclosure process. The disadvantage to you is that you’ll be required to move out of your home and make other arrangements in the future.

Get A Deed In Lieu Of Foreclosure

Another way to avoid these proceedings is to get a deed in lieu of foreclosure. In this situation, you would surrender your home to your lender in exchange for being relieved of any of your home’s debt. This is typically a last-ditch effort to avoid foreclosure and the consequences that come along with it and requires that you move out of your home. This option can be attractive to people who want to avoid a drawn-out foreclosure process and a big hit to their credit score.