Full Text of HB0099 98th General Assembly
HB0099 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB0099 Introduced 1/10/2013, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
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Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that a Section concerning homeowner protection is repealed July 1, 2023 (instead of July 1, 2013). Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Code of Civil Procedure is amended by | 5 | | changing Section 15-1502.5 as follows: | 6 | | (735 ILCS 5/15-1502.5) | 7 | | (Section scheduled to be repealed on July 1, 2013) | 8 | | Sec. 15-1502.5. Homeowner protection. | 9 | | (a) As used in this Section: | 10 | | "Approved counseling agency" means a housing counseling | 11 | | agency approved by the U.S. Department of Housing and Urban | 12 | | Development. | 13 | | "Approved Housing Counseling" means in-person counseling | 14 | | provided by a counselor employed by an approved counseling | 15 | | agency to all borrowers, or documented telephone counseling | 16 | | where a hardship would be imposed on one or more borrowers. A | 17 | | hardship shall exist in instances in which the borrower is | 18 | | confined to his or her home due to medical conditions, as | 19 | | verified in writing by a physician or the borrower resides 50 | 20 | | miles or more from the nearest approved counseling agency. In | 21 | | instances of telephone counseling, the borrower must supply all | 22 | | necessary documents to the counselor at least 72 hours prior to | 23 | | the scheduled telephone counseling session. |
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| 1 | | "Delinquent" means past due with respect to a payment on a | 2 | | mortgage secured by residential real estate. | 3 | | "Department" means the Department of Financial and | 4 | | Professional Regulation. | 5 | | "Secretary" means the Secretary of Financial and | 6 | | Professional Regulation or other person authorized to act in | 7 | | the Secretary's stead. | 8 | | "Sustainable loan workout plan" means a plan that the | 9 | | mortgagor and approved counseling agency believe shall enable | 10 | | the mortgagor to stay current on his or her mortgage payments | 11 | | for the foreseeable future when taking into account the | 12 | | mortgagor income and existing and foreseeable debts. A | 13 | | sustainable loan workout plan may include, but is not limited | 14 | | to, (1) a temporary suspension of payments, (2) a lengthened | 15 | | loan term, (3) a lowered or frozen interest rate, (4) a | 16 | | principal write down, (5) a repayment plan to pay the existing | 17 | | loan in full, (6) deferred payments, or (7) refinancing into a | 18 | | new affordable loan. | 19 | | (b) Except in the circumstance in which a mortgagor has | 20 | | filed a petition for relief under the United States Bankruptcy | 21 | | Code, no mortgagee shall file a complaint to foreclose a | 22 | | mortgage secured by residential real estate until the | 23 | | requirements of this Section have been satisfied. | 24 | | (c) Notwithstanding any other provision to the contrary, | 25 | | with respect to a particular mortgage secured by residential | 26 | | real estate, the procedures and forbearances described in this |
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| 1 | | Section apply only once per subject mortgage. | 2 | | Except for mortgages secured by residential real estate in | 3 | | which any mortgagor has filed for relief under the United | 4 | | States Bankruptcy Code, if a mortgage secured by residential | 5 | | real estate becomes delinquent by more than 30 days the | 6 | | mortgagee shall send via U.S. mail a notice advising the | 7 | | mortgagor that he or she may wish to seek approved housing | 8 | | counseling. Notwithstanding anything to the contrary in this | 9 | | Section, nothing shall preclude the mortgagor and mortgagee | 10 | | from communicating with each other during the initial 30 days | 11 | | of delinquency or reaching agreement on a sustainable loan | 12 | | workout plan, or both. | 13 | | No foreclosure action under Part 15 of Article XV of the | 14 | | Code of Civil Procedure shall be instituted on a mortgage | 15 | | secured by residential real estate before mailing the notice | 16 | | described in this subsection (c). | 17 | | The notice required in this subsection (c) shall state the | 18 | | date on which the notice was mailed, shall be headed in bold | 19 | | 14-point type "GRACE PERIOD NOTICE", and shall state the | 20 | | following in 14-point type:
"YOUR LOAN IS MORE THAN 30 DAYS | 21 | | PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY | 22 | | BE IN YOUR BEST INTEREST TO SEEK APPROVED HOUSING COUNSELING. | 23 | | YOU HAVE A GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS NOTICE | 24 | | TO OBTAIN APPROVED HOUSING COUNSELING. DURING THE GRACE PERIOD, | 25 | | THE LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU. | 26 | | YOU MAY BE ENTITLED TO AN ADDITIONAL 30 DAY GRACE PERIOD IF YOU |
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| 1 | | OBTAIN HOUSING COUNSELING FROM AN APPROVED HOUSING COUNSELING | 2 | | AGENCY.
A LIST OF APPROVED COUNSELING AGENCIES MAY BE OBTAINED | 3 | | FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL | 4 | | REGULATION." | 5 | | The notice shall also list the Department's current | 6 | | consumer hotline, the Department's website, and the telephone | 7 | | number, fax number, and mailing address of the mortgagee. No | 8 | | language, other than language substantially similar to the | 9 | | language prescribed in this subsection (c), shall be included | 10 | | in the notice. Notwithstanding any other provision to the | 11 | | contrary, the grace period notice required by this subsection | 12 | | (c) may be combined with a counseling notification required | 13 | | under federal law. | 14 | | The sending of the notice required under this subsection | 15 | | (c) means depositing or causing to be deposited into the United | 16 | | States mail an envelope with first-class postage prepaid that | 17 | | contains the document to be delivered. The envelope shall be | 18 | | addressed to the mortgagor at the common address of the | 19 | | residential real estate securing the mortgage. | 20 | | (d) Until 30 days after mailing the notice provided for | 21 | | under subsection (c) of this Section, no legal action shall be | 22 | | instituted under Part 15 of Article XV of the Code of Civil | 23 | | Procedure. | 24 | | (e) If, within the 30-day period provided under subsection | 25 | | (d) of this Section, an approved counseling agency provides | 26 | | written notice to the mortgagee that the mortgagor is seeking |
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| 1 | | approved counseling services, then no legal action under Part | 2 | | 15 of Article XV of the Code of Civil Procedure shall be | 3 | | instituted for 30 days after the date of that notice. The date | 4 | | that such notice is sent shall be stated in the notice, and | 5 | | shall be sent to the address or fax number contained in the | 6 | | Grace Period Notice required under subsection (c) of this | 7 | | Section. During the 30-day period provided under this | 8 | | subsection (e), the mortgagor or counselor or both may prepare | 9 | | and proffer to the mortgagee a proposed sustainable loan | 10 | | workout plan. The mortgagee will then determine whether to | 11 | | accept the proposed sustainable loan workout plan. If the | 12 | | mortgagee and the mortgagor agree to a sustainable loan workout | 13 | | plan, then no legal action under Part 15 of Article XV of the | 14 | | Code of Civil Procedure shall be instituted for as long as the | 15 | | sustainable loan workout plan is complied with by the | 16 | | mortgagor. | 17 | | The agreed sustainable loan workout plan and any | 18 | | modifications thereto must be in writing and signed by the | 19 | | mortgagee and the mortgagor. | 20 | | Upon written notice to the mortgagee, the mortgagor may | 21 | | change approved counseling agencies, but such a change does not | 22 | | entitle the mortgagor to any additional period of forbearance. | 23 | | (f) If the mortgagor fails to comply with the sustainable | 24 | | loan workout plan, then nothing in this Section shall be | 25 | | construed to impair the legal rights of the mortgagee to | 26 | | enforce the contract. |
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| 1 | | (g) A counselor employed by a housing counseling agency or | 2 | | the housing counseling agency that in good faith provides | 3 | | counseling shall not be liable to a mortgagee or mortgagor for | 4 | | civil damages, except for willful or wanton misconduct on the | 5 | | part of the counselor in providing the counseling. | 6 | | (h) There shall be no waiver of any provision of this | 7 | | Section. | 8 | | (i) It is the General Assembly's intent that compliance | 9 | | with this Section shall not prejudice a mortgagee in ratings of | 10 | | its bad debt collection or calculation standards or policies. | 11 | | (j) This Section shall not apply, or shall cease to apply, | 12 | | to residential real estate that is not occupied as a principal | 13 | | residence by the mortgagor. | 14 | | (k) This Section is repealed July 1, 2023 2013 .
| 15 | | (Source: P.A. 95-1047, eff. 4-6-09; 96-1419, eff. 10-1-10.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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