IL Senate Bill 2513

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Senate Bill 2513 which was signed into law on April 5, 2009 as the Homeowners Protection Act is a temporary solution to the foreclosure crisis facing our state.

This new law essential is a 90-day moratorium on all  home foreclosures.

  • A lender must send a homeowner an additional notice of default by Certified Mail and cannot foreclose on the home for an additional 30 days after sending  the warning.
  • During this 30-day window the homeowner has the right to seek approved mortgage counseling.
  • If the homeowner seeks counseling then another 30 days grace period will be given to work out a mortgage refinancing plan
  • This stays another 30 additional days on top of the already 60 days given.

Who is eligible under the plan? All homeowners whose loans have not begun the foreclosure process.

Who provides the counseling? The Department o Housing and Urban Development (HUD) approved counseing offices that are recognized by the Illinois Department of Financial and Professional Regulation.

What is a Workout Plan? A  workout plan will allow the homeowner to keep the home, stay current on the mortgage by suspending payments, lowering interest rates, extending mortgage terms, or reducing prinical balances.

The success of IL Senate Bill will be how many foreclosures are prevented and the results of the bill will not occur until after the 90 day moratorium.

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