The laws governing mortgages and foreclosures can vary greatly from state to state. The rate of foreclosure homes in Illinois is among the highest in the country– it rose by 33% in 2009 alone. Thankfully, its protections for borrowers are strong, and the foreclosure process takes much longer than in most states.

Illinois is a two-party mortgage state, meaning that a judicial-foreclosure process is required by law. In a two-party mortgage, a lender must sue the borrower successfully to recover the property upon default, providing all of the relevant documents including the promissory note and the mortgage itself. It is only after a judge approves the foreclosure that the lender and move forward with the foreclosure sale.

The foreclosure process in Illinois takes much longer than in most states, with most cases being settled in about 210 days. The borrower isn't entitled to what's called “right of redemption” though. This rule, which is embraced by many states, allows the borrower to retake possession of a property by bringing the loan current and paying fees and legal costs that the lender has accrued during the foreclosure process.

Another negative about the states' laws is that lenders can get a deficiency judgment, which would usually allows them to recoup further money from a mortgagor who has defaulted after the property has been sold.

Illinois was the ninth worst state for foreclosure statistics last year, posting a rate of 2.5 percent for a total of 131,132. The worst county in Illinois by far was Cook County, which encapsulates the greater Chicago area and accounted for the vast majority of home foreclosures.