HR0045LRB097 00252 AJO 43010 r

1
HOUSE RESOLUTION

 
2    WHEREAS, The United States continues to experience an
3unprecedented number of mortgage foreclosures and these, in
4turn, have contributed to a real estate market that has
5declined in a precipitous fashion; and
 
6    WHEREAS, When a residential mortgagor defaults on his or
7her mortgage, it is common for the lending institution involved
8to obtain the property back from the mortgagor by way of
9receiving a deed in lieu of foreclosure or by foreclosing and
10then purchasing the property at a foreclosure judicial sale;
11and
 
12    WHEREAS, In recent years, it is not unusual for a lending
13institution to have a large inventory of foreclosed properties
14and this has often led to a lending institution repeatedly
15resorting to selling a foreclosed property at a "short sale"
16price, which means that the sale price for the individual home
17is significantly less than the mortgagor's purchase price or
18even the amount of the mortgagor's outstanding loan at the time
19of the foreclosure; and
 
20    WHEREAS, The credit rating of a person whose home has been
21foreclosed is often very low and this means that even if the
22person could afford a more modestly priced property than the

 

 

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1foreclosed home, the former homeowner is unable to qualify for
2a loan under today's standards; and
 
3    WHEREAS, If a lending institution that expects to sell a
4foreclosed residential property at a "short sale" price were
5compelled to offer to the mortgagor modifications in the terms
6of the mortgagor's home mortgage loan, the mortgagor would, in
7many cases, be able to afford the home under the modified loan
8terms and remain in his or her home; in that case, the lending
9institution would avoid adding to its foreclosed properties
10inventory, the residential mortgagor might be able to remain in
11his or her home, the real estate market would be improved
12because fewer "short sale" properties would be depressing home
13prices on the market, neighborhood blight and crime would be
14reduced due to the decline in empty and vandalized homes, and
15all of these circumstances would tend to stem the tide of
16neighborhood deterioration that is due to the large number of
17foreclosures and vacancies; therefore, be it
 
18    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
19NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
20we urge Congress to pass legislation that would compel any
21lending institution, before foreclosing on a residential
22property occupied by a mortgagor, to provide the mortgagor with
23modifications to the home loan that are reasonable for the
24mortgagor and that include, but are not limited to, an interest

 

 

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1rate reduction, a term extension, or other changes to the
2elements of the home loan, provided that the homeowner is
3interested in remaining in the home and qualified for the
4modified loan terms; and be it further
 
5    RESOLVED, That suitable copies of this resolution be
6presented to President Barack Obama, the Speaker of the United
7States House of Representatives, the President pro tempore of
8the United States Senate, and each member of the Illinois
9congressional delegation.