Detailed Answer

Short answer: If the property is part of an estate, guardianship, or conservatorship in Illinois, you generally must ask the probate court for permission to sell the house. The court will want a petition, notice to interested parties, supporting documents (appraisal or sales contract), and a hearing. After the court issues an order authorizing the sale, the closing can pay off the mortgage using a lender payoff statement. The exact paperwork and timing depend on whether this is a probate estate, a guardianship/conservatorship, or another court-supervised matter.

When you need court approval (common Illinois situations)

Probate estate: When the decedent’s house is part of the estate and title is in the estate’s name or needs to be cleared before distribution.
Guardianship or conservatorship: When you are guardian or conservator for an incapacitated person or a minor and the home is part of the protected person’s assets.
Other court-supervised matters: Some injunctions, receiverships, or partition actions may also require court permission for a sale.

Key Illinois statutes and where to read them

The Illinois Probate Act of 1975 governs sales of real estate by personal representatives, guardians, and conservators. See the Probate Act at the Illinois General Assembly website: 755 ILCS 5 (Probate Act of 1975). The specific procedures and requirements for sales and orders of sale appear in the Act and related court rules.

Step-by-step process (typical for probate sale in Illinois)

Confirm the need for court approval. If you are the personal representative (executor/administrator) and the will does not explicitly give you authority to sell real property or if sale will affect creditors/heirs, you will generally petition the court. Check the will, any prior court orders, and local court rules.
Open the estate (if not already opened). File a petition for probate with the circuit court in the county where the decedent lived. The court will appoint a personal representative and issue letters of office.
Prepare the petition for authority to sell real estate. The petition should identify the property, explain why the sale is necessary (to pay mortgage and debts, preserve value, etc.), show efforts to market/valuate the property (appraisal or broker opinion), and propose sale terms (list price or agreement of sale). Include a proposed order authorizing sale.
Give required notice. Illinois law and local rules require notice to heirs, beneficiaries, interested parties, and sometimes creditors. The court will set a hearing date and may require publication for unknown heirs or creditors.
Attend the court hearing. The judge will consider whether the sale is in the best interest of the estate and interested parties. Be prepared to explain why selling is necessary, to present the appraisal or sale contract, and to show how the mortgage will be handled.
Obtain the court order authorizing the sale. If the judge approves, the court issues an order setting terms (for example, sale subject to court confirmation or free and clear of certain interests). Save certified copies for the title company and lender.
Obtain mortgage payoff statement. Request a payoff statement from the mortgage lender showing exact payoff amount and expiry date. This number will be used at closing to ensure the mortgage is paid in full.
Close the sale. The attorney or title company uses the court order, letters of office, and payoff statement at closing. The closing statement will show the mortgage payoff and the residual funds that belong to the estate or other parties per the court order.
File closing papers and accounting with the court. After the sale, file a closing statement, inventory updates, and, if required, a petition to distribute proceeds or a final account for court approval.

Guardianship or conservatorship sale — what’s different

If you are a guardian or conservator, you must follow the court-authorized process under the Probate Act for selling the ward’s property. Typical steps:

File a petition explaining the ward’s incapacity, the property details, and why sale is in the ward’s best interest.
Attach appraisals, proposed sale contract, and evidence of attempts to protect value.
Provide notice to the ward (if able), relatives, and other interested persons.
Request court order authorizing sale and, if required, permission to reduce principal on a mortgage or accept a short sale.
File receipts and account to the court after sale and mortgage payoff.

If the sale price is less than the mortgage (short sale) or there is a lien

When the sale won’t cover the mortgage, you need the lender’s agreement. The court can authorize the sale, but the lender must accept payoff less than full balance to release its lien. Provide the court with written communications from the lender approving the short payoff, or request the court to allow a negotiated resolution. The court will want evidence that you tried to get full value and that the proposed short payoff is reasonable.

Documents you will commonly need

Petition to sell real estate (and proposed order).
Certified letters of office (personal representative/guardian/conservator).
Death certificate (for probate matters).
Copy of the will, if applicable.
Appraisal or broker price opinion.
Signed contract for sale (if under contract).
Mortgage payoff statement from lender with payoff expiration date.
Notices and affidavits of service/publication.
Closing statement and proposed distribution plan.

Timing and costs

Expect several weeks to months depending on whether an appraisal and sale contract are in place, how quickly notices run, and local court scheduling. Budget for court filing fees, certified copies, appraisal fees, attorney fees (often required or advisable for probate matters), title and closing costs, and potential bond premiums (if the court requires a bond for fiduciaries).

Practical tips at closing to pay off the mortgage

Get a written payoff statement with the exact date through which interest is calculated.
Make sure the closing agent sends payoff funds directly to the lender per the payoff instructions.
Confirm the lender will provide a release or satisfaction of mortgage to be recorded after closing.
If the payoff is a short payoff, get a written settlement agreement from the lender confirming acceptance and the lien release terms.

When to talk to an attorney

Consider legal help if:

Heirs or interested parties contest the sale.
The lender refuses a short payoff but the estate cannot pay the balance.
There are complex title or lien issues.
You need to draft or respond to petitions and court orders.

Helpful Hints

Start early: seek a payoff statement and an appraisal before filing the petition to streamline the court hearing.
Keep records: preserve written communications with the lender, copies of the payoff statement, and court filings.
Provide clear notice: follow the court’s notice requirements exactly to avoid delays or objections.
Use standard forms where available: many Illinois circuit courts provide probate forms and guidance online.
Expect lender requirements: some lenders require specific language in court orders or direct communication from the closing agent.
Budget for taxes and closing costs: payoff of mortgage is only one of several items the sale proceeds must cover.
If the sale will be a short sale, get the lender’s written acceptance before representing to the court that the lien will be released.

Disclaimer: This article explains general Illinois procedures and is for educational purposes only. It does not create an attorney-client relationship and is not legal advice. For help tailored to your situation, consult a licensed Illinois attorney or contact your local circuit court clerk for procedural forms and instructions.