AS-ISHOUSE BUYERSof Chicagoland

Pre-foreclosure

Behind on the mortgage in Illinois, with no case filed yet.

You still own the house, and no court case has started. This is the stage with the most options, and selling is only one of them. We're a buyer, not your advisor: talk to a housing counselor first, then ask us for an offer if a sale makes sense.

Start your offer

Start with the address. You are not agreeing to sell by sending it.

By Todd Bennett, owner · Updated

Missing mortgage payments isn't the same as being in foreclosure. In Illinois a foreclosure is a court case, and until one is filed there's no judgment, no sale date, and no statutory clock running. This page covers that earlier stage. If you've already been served with a summons, our foreclosure page covers that stage instead.

We can look at the house and put an offer in writing, with no obligation. We don't negotiate with your lender, and we can't tell you how any choice will affect your credit. A cash offer is usually below what a repaired house would list for.

A stack of bills and a coffee mug on a kitchen table

Good to know: Legal and financial details vary by situation. This page offers general information, not legal or tax advice. Talk with a qualified Illinois professional about your circumstances before signing an agreement.

What we do

What has to happen before a lender can foreclose

Two rules set the floor. Federal mortgage servicing rules generally say a servicer can't make the first notice or filing for a foreclosure until the loan is more than 120 days delinquent, with exceptions such as a due-on-sale violation. And Illinois doesn't let a lender sell a house under a power of sale in the mortgage: the lender has to file a lawsuit and win a judgment first.

If a case is filed, you'll be served with a summons, and Illinois requires a Homeowner Notice attached to it that lists your rights in plain language; our page on selling a house in foreclosure in Illinois goes through it. Until then, the letters from your servicer are notices, not court papers. Read them, keep them, and don't assume either that you have months or that you don't. How those rules apply to your loan is a question for your servicer and a housing counselor.

Call a housing counselor before you call a buyer

HUD-approved housing counseling agencies give independent advice, often at little or no cost, and the Consumer Financial Protection Bureau keeps a search tool for finding one near you. A counselor can go through what your servicer offers: a repayment plan, a modification, forbearance, or other workout. Those are between you and your lender. We have no part in them and can't get them for you.

If you want to keep the house and there's a realistic way to catch up, that's a better outcome for you than selling to us. We'd rather you find that out from a counselor before we ever walk through.

When selling is the better choice

Selling makes sense when the payment no longer fits and isn't going to, when the house needs work you can't fund, or when you'd rather leave with your equity than spend it catching up. Before a case is filed, a sale is an ordinary sale: the mortgage is paid from the price at closing, along with any other liens, and what's left is yours.

Start with the payoff. Ask your servicer for a written payoff statement, and ask a title company to check for a second mortgage, an association balance, unpaid taxes, or judgments. If the total is more than the house will sell for, a sale needs the lender's approval as a short sale, and that's a conversation to start with a counselor or a lawyer.

The honest trade-off: a cash offer is usually lower than what a repaired, listed house would bring. If the house is in good shape and you have time, listing it may leave you with more. A direct sale trades price for not repairing, not showing, and one walk-through.

Who finds out, and how a sale to us works

A direct sale doesn't need a listing, a yard sign, or showings. It isn't secret, though. Everyone on title has to sign, and the lender, the title company, and any lienholder will be part of the closing. Our privacy policy explains how we handle what you send us.

The steps: the address and what you know about the house, one walk-through with no cleaning or repairs first, and a written offer with our name, the price, what stays, who pays which closing costs, and a closing date. Take it to a lawyer; we recommend it. The title company orders the payoff and shows every number on the settlement statement before you sign.

No repairs. No cleanup.

  • As-is
  • No showings
  • You pick the closing date.

Common questions

Common questions about the sale.

  • Can I sell my house if I'm behind on the mortgage?

    Yes. You own the house, and being behind doesn't change who can sell it. In a sale, the title company orders a current payoff and the mortgage is paid from the price at closing, along with any other liens. If the price won't cover them, the lender has to approve a short sale.

  • How many payments can I miss before foreclosure in Illinois?

    There isn't a safe number. Federal servicing rules generally bar a servicer from making the first foreclosure filing until a loan is more than 120 days delinquent, with exceptions, and Illinois requires a court case. Ask your servicer and a housing counselor how that applies to your loan.

  • Is pre-foreclosure the same as foreclosure?

    No. "Pre-foreclosure" is an informal word for being behind with no court case filed. In Illinois, foreclosure begins when the lender files a lawsuit and you're served with a summons. The statute's reinstatement and redemption periods are measured from the service and judgment dates in that case, which our foreclosure page covers.

  • Who should I talk to first?

    A HUD-approved housing counselor or a lawyer, before any buyer. Counselors give independent advice, often at little or no cost, and can explain what your servicer may offer. The Consumer Financial Protection Bureau's counselor search lists agencies by ZIP code. We're a buyer and can't advise you.

  • Can you talk to my lender or get me a loan modification?

    No. We don't contact lenders on an owner's behalf, arrange workouts, or act as anyone's advisor. Those are between you and your servicer, with a counselor or a lawyer helping you. The only thing we do is make a written offer to buy the house, which you can accept or ignore.

  • Will selling protect my credit?

    We can't tell you that and won't guess. Missed payments, a short sale, and a foreclosure may each be reported differently, and a sale doesn't erase payments already missed. Ask a housing counselor or your lender how each option would be reported in your case before you choose one.

  • What if I owe more than the house is worth?

    Then a sale can only close if the lender agrees to accept less than the balance, which is a short sale. The lender decides, on its own schedule, and may ask for financial documents. Start that conversation with a housing counselor or a lawyer, not with a buyer.

  • Will my family or neighbors find out?

    A direct sale has no listing, sign, or showings, but nobody can promise secrecy. Everyone on title has to sign, and the lender, title company, and lienholders are part of the closing. A co-owner or spouse with an interest in the house will need to know before a contract is signed.

  • What if a foreclosure case gets filed while I'm deciding?

    Then the court's dates start to matter. Read the Homeowner Notice that comes with the summons, take the papers to a lawyer or a housing counselor, and see our page on selling a house in foreclosure in Illinois for what the statute says about reinstatement, redemption, and the sale.

Illinois law referenced on this page

Related situations

A simple first step

Ready to talk about the house?

In any condition.

Start with the property address and tell us a little about the house. We will explain what happens next.

Prefer to talk?

Call 224-219-0970
Tell us about the house

Start with the address. You are not agreeing to sell by sending it.