Foreclosures broke records in the years following the 2007 subprime lending crash and housing market collapse. Many industry watchers used the word "crisis" to describe the rapid increase of foreclosures. Illinois is one of many states to try to address the problem with legislation to help protect struggling homeowners. While homeowners do have a better opportunity to stop foreclosure in Illinois with the new laws, as you might expect, there are complexities. Typically, a homeowner's best option is to hire an attorney experienced with foreclosure defense in Illinois.
Stronger Mediation Guidelines
During the foreclosure crisis, the Illinois Supreme Court realized it needed to know more about topics related to foreclosure in their state. It set up a foreclosure research committee and one of many things it learned was that the mediation process needed to be more uniform, encompassing a more holistic approach. That way, homeowners in the state could not only stop foreclosure in Illinois in the moment, but could also have a real plan to get back on track and stay out of foreclosure for the long-term. Important changes include a stronger focus on connecting eligible homeowners to pro bono legal services and home and mortgage counseling services certified by HUD.
Improved Communication
Communication was another area of trouble noted by the committee. The new state laws sought to address some of the main communication issues in hopes of seeing more homeowners get the foreclosure help in Illinois they need. If a homeowner doesn't speak English well, then efforts to meet language needs must be made.
Another important change is that a copy of the initial mortgage agreement is to be filed with the paperwork when a lender brings a foreclosure case to the court, along with documentation supporting each time the loan was sold to another entity. Publishing a foreclosure sale date in the newspaper is no longer sufficient notice. The homeowner must be notified by mail a minimum of 10 business days before the sale. If a foreclosure is awarded due to a homeowner not showing up in court, then notification must be mailed. A clear explanation of what happened must be offered.
Formal documentation of of what options were available to the homeowner to avoid foreclosure, what the lender did to make these options available to the homeowner, and where the situation stands regarding those options must be presented to the court. Without it, a judge can deny the foreclosure. This is very important because it addresses a widespread problem. Typically, a homeowner doesn't know the full range of options that are available to help stop foreclosure in Illinois.
Effective Tools for a Professional
Just like the other laws that can stop foreclosure in Illinois, these new laws can be effective tools in the fight to keep a family home. However, like most tools, they are most effective in the hands of a person that is well experienced in their use. Real estate and foreclosure law are complex legal areas. The average person doesn't deal with a wide range of foreclosure situations on a regular basis. That means there are strategies or solutions a non-lawyer may miss. An experienced attorney that handles both foreclosure defense and loan modification is often the best choice for a homeowner seeking a long-term foreclosure defense solution.
