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New Foreclosure Law In Illinois

Posted on in Bankruptcy Attorney

The worst of the housing crisis that began in 2007 is over, but the ripple effects continue to plague the economy and American homeowners and likely will for some time to come. According to RealtyTrac, 1 in every 869 housing units in the country received a foreclosure filing in January 2013, which is still a staggering number. Illinois was one of the worst states for foreclosures in January of this year, having 14,090 foreclosed properties in the month—one in every 375 units in the state, a number well above the national average. In fact, next to Florida and California, Illinois is ranked third in the nation for total number of foreclosures.

In February of this year, according to ABC News Local, “the Illinois Supreme Court has developed rules that require lenders to exhaust all efforts to help a homeowner before they can move forward with foreclosure.” This could help embattled homeowners to keep their properties, and was developed by Supreme Court Justice Mary Jane Theis after “seeing deceptive practices impacting homeowners” in the state.

There are three rules set forth by the new legislation, according to ABC News. They include things such as required counseling for homeowners who are in danger of losing their home, and requiring more from the lenders “requesting foreclosure, like proof of the homeowner's debt and proof that a mortgage modification is not possible.”

The U.S. Department of Housing and Urban Development has discussed with several state's attorneys a national settlement with lenders to help homeowners. Thus far, according to ABC News, settlement has helped 20,000 Illinois homeowners. Yet even after settlements have been exhausted, “the new rules for Illinois courts remain,” according to ABC.

Foreclosure and bankruptcy go hand in hand. If you or someone you know is considering bankruptcy, don't go through it alone. Contact a dedicated Illinois bankruptcy attorney today.

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