What is Consent Foreclosure?
A consent foreclosure (otherwise known as a “deed-in-lieu of foreclosure“), is occasionally used in IL. It involves the court issuing a judgment of foreclosure and giving title to the property to the lender (with both the lender and borrower’s consent). There is no sale. At that point the defaulted mortgage is considered to be satisfied and the lender may not sue for any deficiency; that is for the difference, if any, between the price the lender sells the property for and the remaining balance on your mortgage (plus costs). You will, however give up your right of redemption; that is the right to reclaim your property by making payment in full.