sale of foreclosed property ends owners’ right to redeem

Staff writer Stephanie Potter points out in the Chicago Daily Law Bulletin (Vol. 153 Issue 91) that the First District Illinois Appellate Court in a recent decision held that once  foreclosed property goes to a Sheriff’s Sale and changes hands the former owner(s) may no longer sell it, pay off the mortgage holder, and take the excess.

Writing for the court, Justice Hoffman noted that judicial sales must be approved by the trial court, which may refuse to confirm such sales if they find that ”justice was not done” in the sale process.  735 ILCS 5/15-1508(b). But while judges may refuse to approve judicial sales (see e.g. Washington Mutual Bank FA v. Boyd, 369 Ill.App.3d 526 (2006)) that ability alone does not revive a homeowner’s absolute right to redeem property bestowed under 735 ILCS 5/15-1605.

This decision marks a split among Illinois Appellate Courts that will have to be resolved at the Supreme Court level.

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