FORECLOSURE RELIEF IN IL - Bill Mandating Up to 90 Day Delay Signed by IL Governor!
IL SENATE BILL 2513 COULD DELAY FORECLOSURES!
New IL Governor Pat Quinn gave final approval last Sunday to an important change to the IL Code of Civil Procedure that could forestall Home Foreclosure Actions in IL.
From the Website of the Illinois Association of Realtors, here is a summary of how it would work -
First, once a loan becomes 30 days delinquent across IL, the lender must mail a special notice informing the homeowner that they may wish to seek approved Housing Counseling. The counseling agency would be approved by the U.S. Department of Housing and Urban Development, or HUD. Before this special notice is mailed out, the Foreclosure Process cannot begin.
After receiving the first notice, the borrower has 30 days to state they will seek approved mortgage counseling. No foreclosure action can begin for another 30 days from the date of that returned written notice.
During this 30-day period, the borrower and lender would attempt to create a sustainable workout plan, with hopes of avoiding foreclosure action. If the parties agree on a forbearance agreement, there would be no foreclosure.
The Illinois Department of Financial and Professional Regulation would add counselors as necessary should demand exceed projections. This new law would sunset in two years, and would apply only to the homeowners principal residence, not investment property.
The IAR Website provides a link to the actual text of the new IL Legislation.
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