When you miss payments on your home mortgage you start the Illinois foreclosure process. The first thing the bank will do is contact you everyday and file a notice of default with the courts. They will give you time to get caught up on your mortgage payments if you express to them you intend to do so. They may even offer many different options to you to help you bring your payments current. If you cannot or do not intend to bring the loan to current and hold onto your home then the bank will sell the home in a public auction.
The entire Illinois foreclosure process can take up to 1 year to be complete. Some homes can foreclose in as little as 6 months if the bank acts quickly. You do have options to avoid foreclosure which include getting caught up on the loan or even selling the house prior to the sale of the auction. The lender will actually encourage you to sell the home prior to the auction because they do not want to own a property. They want the money they loaned to the borrower.
Once a home sells prior to the auction or at the auction then the loan you borrowed to buy the home will be paid on. The difference will be what you owe and in most cases, the bank will charge off and not come after you for. You will have a foreclosure on your credit though. A foreclosure can remain on your credit for 7 years. If you file bankruptcy, you can buy another home but it actually looks much worse than the foreclosure. It will be difficult to have credit extended to you when you fail to meet your obligations of a mortgage and foreclose on a home or any property.