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New rules for foreclosures in Illinois

New rules for foreclosures in Illinois

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New Illinois foreclosure rules which went into effect last year, were put in place to assist and protect those who face foreclosure on their residential property.

Tens of thousands of homeowners in Illinois are still facing the possibility of losing their homes to foreclosure a full six years after the housing market crashed.

Three new rules

The new set of rules takes even more steps toward ensuring that homeowners are protected and informed of their rights when they are involved in foreclosure proceedings. The new rules include the following:

  • Mediation – This new rule will help instruct homeowners about the different types of court-approved mediation programs that are available to them. These mediation programs offer owners options on how they might be able to repay back mortgage payments or refinance their homes instead of losing them in a foreclosure.
  • Original complaint – When a bank files foreclosure on a home, it is now required to make sure that the copy of the mortgage papers are an exact copy to the set they use when they appear in court. Before this ruling, it was common for banks to attach a copy of the mortgage papers from a previous bank and then switch the papers before the trial. This rule also states that each defendant in the foreclosure case needs to be sent notice of the proceedings at least 10 days before the property is put up for sale.
  • Inform – The third new rule also requires lenders to give more information to those facing foreclosure. This rule only helps those homeowners who have paid an appearance fee and either shown up in court or filed an answer.  Once the homeowner has done this, the lender is obligated to help borrowers understand the types of free legal services that might benefit them, and consider them for loss mitigation. This consideration would mean that banks work to help prevent the foreclosure through some type of resolution.

According to Illinois Supreme Court Justice, Thomas L. Kilbride, this new set of rules should help to ensure more fairness to homeowners, curb abuses by lenders, and help to educate citizens in a sluggish economy about the types of help that are available to them.

Conclusion

In a foreclosure process, nobody comes out the winner. However, these new rules help to ensure that the process is carried out fairly. By working with an experienced lawyer during foreclosure proceedings, it is possible for homeowners to have a better chance at working with their lender to modify their loan and keep their homes.

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