The Illinois Executive Orders issued during the COVID-19 pandemic — including the orders placing restrictions on evictions — do not prohibit lenders from commencing or proceeding with foreclosure actions. However, some Illinois courts have stayed or restricted mortgage foreclosure proceedings. Additionally, certain federally-backed or federally-insured mortgage loans may be subject to a foreclosure moratorium. Accordingly, we recommend consulting with your foreclosure counsel regarding any applicable county-level or federal restrictions before commencing a foreclosure action.

Some examples of Illinois courts that have restricted foreclosure actions include the Circuit Court of Cook County, in which “all mortgage foreclosure judgments, evictions in furtherance of a foreclosure, and foreclosure sales are stayed until after September 21, 2020.” Additionally, the circuit court in Sangamon County resumed processing mortgage foreclosure cases on July 1, 2020, and the circuit court for Iroquois and Kankakee Counties prohibited the entry of foreclosure orders prior to June 1, 2020.

Regarding federal restrictions, the Federal Housing Finance Agency recently announced that the foreclosure moratorium on Fannie Mae- and Freddie Mac-backed single-family mortgages has been extended “until at least December 31, 2020.” The CARES Act foreclosure moratorium also has been extended through December 31, 2020, for single-family mortgages insured by the Federal Housing Administration, guaranteed or insured by the Department of Veterans Affairs, or guaranteed or insured by the Department of Agriculture.

Additionally, we note that at present, residential eviction orders arising out of foreclosure cases cannot be enforced. Executive Order 2020-30 (as amended and extended by Executive Order 2020-52) generally prohibits the commencement of residential eviction actions and prohibits the enforcement of eviction orders for residential premises (with exceptions for tenants posing harm to other tenants or the premises) through September 19, 2020. Consequently, mortgagees or other parties entitled to possession of residential premises following a foreclosure action currently are barred from evicting any occupants from the premises — unless one of the previously mentioned exceptions applies.

Also, we note that Executive Order 2020-25 prohibits the service of garnishment summons, wage deduction summons, and citations to discover assets, which would bar any post-judgment proceedings initiated to collect a deficiency judgment entered in a foreclosure action. Executive Order 2020-25 has been re-issued and extended through September 19, 2020.

For resources related to our guidance, please see:

• Circuit Court of Cook County, General Administrative Order 2020-02 (September 3, 2020), Paragraph 1(e)(i) (“All mortgage foreclosure judgments, evictions in furtherance of a foreclosure, and foreclosure sales are stayed until after September 21, 2020, including any court order in furtherance of a foreclosure, such as an order for default, summary judgment, and orders approving sales; other contested motions may continue to be litigated and ruled upon by the court, including, but not limited to, discovery motions, special representatives motions, and receiver motions; . . .”)

• Circuit Court of the Seventh Judicial Circuit (Sangamon County), Administrative Order 2020-13 (June 30, 2020) (“Beginning July 1, 2020, the Sangamon County courts will resume the processing of all cases previously subject to suspension by prior Administrative Orders, including: . . . Chancery (Mortgage Foreclosure) [and] Forcible Entry and Detainers — as set forth in a separate Administrative Order.”)

• Circuit Court of the Twenty-First Circuit (Iroquois and Kankakee Counties) Administrative Order 2020-17 (April 29, 2020) (“As a result of, and consistent with the recommendations of the Illinois Supreme Court, many of the civil and criminal cases in the 21st Judicial Circuit, consisting of Iroquois and Kankakee Counties, will be postponed until no sooner than June 1, 2020. . . . For the period of time prior to June 1, 2020, all civil matters not deemed emergency are postponed to a future date. . . . No orders for an eviction or foreclosure will be entered prior to June 1, 2020.”)

• FHFA, FHFA Extends Foreclosure and REO Eviction Moratoriums (August 27, 2020) (“Today, to help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least December 31, 2020.  The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only.”)

• HUD, Mortgagee Letter 2020-27, Extension of Foreclosure and Eviction Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency (August 27, 2020) (“FHA-insured Single Family mortgages, excluding vacant or abandoned properties, are subject to an extension to the moratorium on foreclosure through December 31, 2020. The moratorium applies to the initiation of foreclosures and to foreclosures in process.”)

• Veterans Benefits Administration, Circular 26-20-30 (August 24, 2020) (“The CARES Act prohibited loan servicers from initiating any judicial or non-judicial foreclosure process for the 60-day period beginning March 18, 2020. Department of Veterans Affairs (VA) then extended the foreclosure moratorium through August 31, 2020. Per Executive Order 13945, Section 2, of August 8, 2020, it is the policy of the United States to minimize, to the greatest extent possible, residential evictions and foreclosures during the ongoing COVID–19 national emergency. In light of the ongoing COVID-19 national emergency and its impact on Veteran borrowers, properties secured by VA-guaranteed loans are subject to a moratorium on foreclosure through December 31, 2020. The moratorium applies to the initiation of foreclosures, and to the completion of foreclosures in process.”

• USDA, Foreclosure Moratorium Extension and Additional Guidance for Servicing Loans Impacted by COVID-19 (August 28, 2020) (“The 60-day foreclosure and eviction moratorium announced by USDA, Single Family Housing Guaranteed Loan Program (SFHGLP) on March 19th, is extended until December 31st, 2020. The moratorium does not apply in cases where the servicer has documented the property is vacant or abandoned.”)

• CARES Act, Section 4022(c)(2) (“Foreclosure Moratorium. — Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020.”)

• CARES Act, Section 4022(a)(2) (“The term ‘Federally backed mortgage loan’ includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4- families that is— (A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20); (C) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); (D) guaranteed or insured by the Department of Veterans Affairs; (E) guaranteed or insured by the Department of Agriculture; (F) made by the Department of Agriculture; or (G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.”)

• Illinois Executive Order 2020-30 (April 23, 2020) (“Section 2. A person or entity may not commence a residential eviction action pursuant to or arising under 735 ILCS 5/9-101 et seq., unless a tenant poses a direct threat to the health and safety of other tenants, an immediate and severe risk to property, or a violation of any applicable building code, health ordinance, or similar regulation. . . .”)

• Illinois Executive Order 2020-52 (August 21, 2020) (“Executive Order 2020-30, as amended by Executive Order 2020-48 and as further amended and revised below, is re-issued in its entirety and extended through September 19, 2020. Section 3. All state, county, and local law enforcement officers in the State of Illinois are instructed to cease enforcement of orders of eviction for residential premises, unless the tenant has been found to pose a direct threat to the health and safety of other tenants, an immediate and severe risk to property, or a violation of any applicable building code, health ordinance, or similar regulation. Nothing in this Executive Order shall be construed as relieving any individual of the obligation to pay rent, to make mortgage payments, or comply with any other obligation that an individual may have pursuant to a lease, rental agreement, or mortgage.”)

• Illinois Executive Order 2020-48 (July 24, 2020) (“Executive Order 2020-30, as amended by Executive Order 2020-33 and as further amended and revised below, is re-issued in its entirety and extended through August 22, 2020, whereafter the prohibition on enforcement of orders of eviction for non-residential premises shall be rescinded.”)

• Illinois Executive Order 2020-25 (“Section 1. During the duration of the Gubernatorial Disaster Proclamations, Sections 5/12-705, 5/12-805, and 5/2-1402 of the Illinois Code of Civil Procedure, 735 ILCS 5/12-705, 735 ILCS 5/12-805, and 735 ILCS 5/2-1402, that permit the service of a garnishment summons, wage deduction summons, or a citation to discover assets on a consumer debtor or consumer garnishee, are suspended.”)

• Illinois Executive Order 2020-52 (August 21, 2020) (“Executive Order 2020-25 is re-issued in its entirety and extended through September 19, 2020.”)