Legal Question in Real Estate Law in Illinois

Depleting your retirement accounts is a bad idea. You have to consider the future.

This is going to be inconsistent but you can always make an offer. I would suspect that they would not be interested. It seems that once they have foreclosed they want nothing to do with the (ex-)borrower. I have seen quite a few 'sensible' deals refused just "because" of the bank's mindset.

Usually once they have decided on foreclosure, that is what will happen regardless of all other considerations. On the part of the banks there is a bureaucratic mindset that will listen to nothing only processing the papers. Then the matter gets turned over to law firms who do not make money through compromise.

This may sound cumbersome but I would advise waiting until the house was put with a realtor then seeing if you could borrow the money for the house, using your retirement funds as a reserve/collateral, and trying to buy it back. That way you would have a realtor wanting a commission on your side. I am assuming that you are employed. If you are not,

you have no hope anyway.

Divulging that you have money, that maybe you could, not should, have used to make mortgage payments, won't hurt you like it would have if you had declared bankruptcy. I have seen a fair number of people in foreclosure who have some money, just not enough.

What you might do is watch for the foreclosure summonses and wait your chance to go before a judge. They are pretty much obliged to listen to you and can force the bank to deal if they are in a mind to do so. Appear on your earliest court date and walk up when your case is called. In Cook County the case would be continued long enough for you to file a formal appearance. At that time ask the judge for Pro Bono assistance.