Ask a Lawyer - Archive

Filed Chapter 13 in August 2007 and voluntarily dismissed the case after settling with creditors, except for one. A bank wants to foreclose on land. Land is in IL, but I live in IN. Bank is in KY. I can pay and have offered to pay defaulted amount and more. They are still wanting to foreclose. How can I stop them?

In Illinois, mortgagors of real estate have a right to reinstate any mortgage which has become due prior to the maturity date stated in the mortgage because of an acceleration by default. To reinstate the mortgage, the mortgagor must pay all default payments then existing, other than the amount of principal which would not have been due had no acceleration occurred. In addition, the mortgagor must pay all costs and expenses due under the mortgage as a result of the default.

Your question implies that the bank has not filed a foreclosure complaint yet. However, if the bank has commenced foreclosure proceedings, reinstatement must be made within 90 days from the date you are served with summons or by publication or have otherwise submitted yourself to the jurisdiction of the court. Once you reinstate the mortgage, the foreclosure proceeding will be dismissed and the mortgage will remain in full force and effect as though the default never occurred.