Illinois Enacts Fast-Track Foreclosure Legislation

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On February 8, Illinois Governor Pat Quinn signed SB 16, a bill introduced in January 2011, which creates a fast-track foreclosure process for certain abandoned and vacant properties. Effective June 1, 2013, a lender can petition a court seeking expedited foreclosure proceedings on properties that hold six or fewer units that are not legally occupied. The bill also shortens the foreclosure timeframe on those properties to between 90 and 180 days. Lenders will be subject to a sliding scale of additional foreclosure filing fees through 2017, ranging from $50 to $500. The exact fee amount is dependent on the number of foreclosure actions lenders undertake annually. The state expects the fees to generate $120 million over the next three years. A portion of that revenue is earmarked to offset local government costs associated with abandoned homes. Funds also will support HUD-approved housing counseling agencies.

Topics:  Abandoned Property, Expedited Foreclosure, Filing Fees, Foreclosure, Housing Counseling Agencies, HUD

Published In: Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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