Illinois at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Illinois mortgage foreclosures go through the court. State law does not allow a home to be sold under a power of sale clause; a mortgage can only be foreclosed under the Illinois Mortgage Foreclosure Law. 735 ILCS 5/15-1405 Show the source textNo real estate within this State may be sold by virtue of any power of sale contained in a mortgage or any other agreement, and all such mortgages may only be foreclosed in accordance with this Article. |
| Who holds foreclosure surplus | Sale proceeds are applied in a set order: sale expenses, the lender's allowed costs, and then the claims in the priority order set by the foreclosure judgment or the order confirming the sale. Any surplus is held by the person the court appointed to conduct the sale until the court orders otherwise. That person must send written notice of the amount of the surplus to all parties to the case, and a party needs a court order to have it distributed. 735 ILCS 5/15-1512(d) Show the source textremittance of any surplus to be held by the person appointed by the court to conduct the sale until further order of the court |
| Claim window for foreclosure surplus | The statute does not give a number of days or years. It says the surplus is held until a party obtains a court order for its distribution or, if no order is obtained, until the surplus is forfeited to the State. The statute does not say when that forfeiture happens. 735 ILCS 5/15-1512(d) Show the source textthe surplus shall be held until a party obtains a court order for its distribution or until, in the absence of an order, the surplus is forfeited to the State |
| Tax sale excess proceeds | Illinois sells tax certificates (a tax lien system), and the law changed on July 10, 2026. For certificates issued on or after that date, the owner can redeem within 3 years of the tax sale (1 year for vacant non-farm, commercial, industrial or 7-plus unit property). If there is no redemption, the court orders a public tax deed auction. Any amount bid above the minimum bid is deposited with the county treasurer, who must send notice within 60 days; the owner at the time of the sale can claim it from the county treasurer or the circuit court within 3 years of the date on the notice. After that, unclaimed funds are handled under the state unclaimed property act. For older tax deeds, a former owner may petition the court for a surplus equity award within 2 years. 35 ILCS 200/21-350; 35 ILCS 200/22-40(g), (h); 35 ILCS 200/22-42(f), (h), (k); 35 ILCS 200/21-302(a) (P.A. 104-553, eff. 7-10-26) Show the source textthe owner or owners of the property at the time of the sale may submit a claim for the surplus funds to the county treasurer or the circuit court within 3 years of the date on the notice |
| Redemption after the sale | In Illinois the normal redemption period runs before the sale: for a home it ends 7 months after the borrowers are served or 3 months after the foreclosure judgment, whichever is later (the court can shorten it in some cases, such as abandoned property). After the sale there is only a limited special right to redeem residential real estate. It applies when the buyer at the sale was the foreclosing lender (or its nominee) and the sale price was less than the full redemption amount, and it lasts until 30 days after the court confirms the sale. 735 ILCS 5/15-1604(a); 735 ILCS 5/15-1603(b)(1) Show the source textan owner of redemption as specified in subsection (a) of Section 15-1603 shall have a special right to redeem, for a period ending 30 days after the date the sale is confirmed |
| Rules for recovery companies | Illinois regulates finders who charge to locate or recover property held by the State Treasurer's unclaimed property program. A finder agreement is void if it is signed between the date the property was presumed abandoned and 24 months after it was turned over to the State. A fee of more than 10 percent of the amount collected is unenforceable except by the owner, and buying or taking an assignment of the property for a net profit above 10 percent is prohibited. Since January 1, 2026 a finder must be licensed by the State Treasurer. The agreement must be in writing, be signed by the owner, show the value before and after the fee, and state that the property can be recovered from the State without paying a fee. These limits do not apply to an owner's agreement with an attorney, in an attorney-client relationship, to pursue a claim for specifically identified property. 765 ILCS 1026/15-1301; 765 ILCS 1026/15-1302(a), (c), (e), (f) (P.A. 104-116, eff. 1-1-26) Show the source textAn agreement under this Article 13 that provides for a fee, compensation, commission, or other remuneration in an amount that is more than 10% of the amount collected is unenforceable except by the apparent owner. |
How surplus funds arise in Illinois
When a home in Illinois is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Illinois
We confirm the sale figures in the public record, identify which office in Illinois is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Illinois that program is the Illinois State Treasurer's Unclaimed Property Division (known as I-Cash).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Illinois law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Illinois
Illinois regulates this kind of service. Illinois regulates finders who charge to locate or recover property held by the State Treasurer's unclaimed property program. A finder agreement is void if it is signed between the date the property was presumed abandoned and 24 months after it was turned over to the State. A fee of more than 10 percent of the amount collected is unenforceable except by the owner, and buying or taking an assignment of the property for a net profit above 10 percent is prohibited. Since January 1, 2026 a finder must be licensed by the State Treasurer. The agreement must be in writing, be signed by the owner, show the value before and after the fee, and state that the property can be recovered from the State without paying a fee. These limits do not apply to an owner's agreement with an attorney, in an attorney-client relationship, to pursue a claim for specifically identified property. (765 ILCS 1026/15-1301; 765 ILCS 1026/15-1302(a), (c), (e), (f) (P.A. 104-116, eff. 1-1-26))
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Illinois
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Illinois, from locating the funds to filing the claim.
Sale proceeds are applied in a set order: sale expenses, the lender's allowed costs, and then the claims in the priority order set by the foreclosure judgment or the order confirming the sale. Any surplus is held by the person the court appointed to conduct the sale until the court orders otherwise. That person must send written notice of the amount of the surplus to all parties to the case, and a party needs a court order to have it distributed.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.