Illinois Foreclosure Law Needs Improvement..
May 4th, 2009 categories: Loan Modification, Real Estate Definitions
The February 2009 Report “Foreclosing a Dream” by National Consumer Law Center examines the current foreclosure laws in all 50 states and evaluates how well the laws in each state protect homeowners facing foreclosure.
This study recommended the following actions in order to restore fairness to homeowners in the foreclosure process before a foreclosure sale and after the sale:
1. A Judicial Foreclosure Process should be the norm where homeowners are given due process in the courts.
2 Homeowners must be served a Notice of Default
3. States should require a lender to make attempts to modify the loan before foreclosure can be initiated through a formal court proceeding.
4. Homeowners should be given the right to cure the default , catch up on missing payment , without penalty , before any formal foreclosure proceedings.
5. Guarantee the right to reinstate the mortgage by paying the all payments in arrears and any costs up to the time of a foreclosure sale.
6. Each State should create an Emergency Financial Assistance Fund for homeowners facing foreclosure.
7. All homeowners with the Right to Redeem the property after a foreclosure sale.
8. Prohibit Lenders from giving homeowners Deficiency Judgements after foreclosure
9. Accounting of all sales to be supervised by the courts
10. Require court supervision to surplus of any sale proceeds to homeowner
Illinois Foreclosure Law
| Pre-Foreclosure Protection | |
| Homeowner must be served Notice of Default | Yes |
| Homeowners right to Judicial Review | Yes |
| Homeowners Right to Loss Mitigation before Foreclosure | No |
| Homeowners Right to Cure before Sale | No |
| Homeowners Right to Reinstate before Sale | No |
| Housing Emergency Assistance Fund | No |
| Post Foreclosure Sale Protection | |
| Homeowner Right to Redeem Home After Foreclosure | No |
| Protection from Deficiency Judgement | No |
| Court Supervision of Sale Proceeds | Yes |
| Court Supervision of Surplus | Yes |
Thanks for posting the article, was certainly a great read!
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Hi thanks for your article. I was wondering if you had an update on the new bill that was imposed and could you tell us if it was also applicable to tenants? I also checked this site for more info. http://www.stopforeclosureanswer.com/stopforeclosure/