Illinois General Assembly - Full Text of HB1810
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Full Text of HB1810  97th General Assembly



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1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Code of Civil Procedure is amended by
5changing Section 15-1512 and by adding Section 15-1510.5 as
7    (735 ILCS 5/15-1510.5 new)
8    Sec. 15-1510.5. Mortgage Foreclosure Prevention Fee.
9    (a) Definitions.
10        "Civil legal services provider" means a not-for-profit
11    corporation that (1) employs one or more attorneys who are
12    licensed to practice law in the State of Illinois and who
13    directly provide civil legal services or (2) is established
14    for the purpose of providing civil legal services by an
15    organized panel of pro bono attorneys.
16        "Community-based outreach" means in-person contact
17    with mortgagors in foreclosure intended to inform such
18    mortgagors about the foreclosure process and the
19    mortgagors' rights and options for assistance in the
20    process, including the availability of mortgage
21    foreclosure housing counseling and mortgage foreclosure
22    legal services.
23        "Comprehensive court-sponsored foreclosure mediation



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1    programs" means programs, administered at least in part by
2    an Illinois Circuit Court, that offer mediation in actions
3    for foreclosure. Programs shall provide mortgagors access
4    to housing counseling and legal services and include
5    community-based outreach.
6        "Governmental agency" means any State, county, or
7    local government body in Illinois, and any agency or
8    instrumentality thereof, corporate or otherwise.
9        "HUD-approved housing counseling agency" means a
10    mortgage foreclosure housing counseling agency that is
11    approved by the United States Department of Housing and
12    Urban Development, or any successor agency.
13        "Mortgage foreclosure housing counseling" means
14    housing counseling provided by a mortgage foreclosure
15    counselor that works for a HUD-approved housing counseling
16    agency.
17        "Mortgage foreclosure legal services" means legal
18    services to mortgagors with an interest in a property
19    subject to a mortgage foreclosure proceeding under Article
20    XV of the Code of Civil Procedure provided by a civil legal
21    service attorney that works for a civil legal services
22    provider.
23        "Mortgage Foreclosure Prevention Fund" means a special
24    fund used expressly to support mortgage foreclosure
25    prevention programs.
26    (b) There shall be a $500 Mortgage Foreclosure Prevention



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1Fee collected from the proceeds resulting from a judicial sale
2of residential real estate conducted pursuant to a foreclosure
3judgment under this Article. The fee shall be remitted to the
4Department of Revenue by the purchaser at the time of sale and
5the Department shall deposit these amounts into the Mortgage
6Foreclosure Prevention Fund. Amounts in the Fund may be
7expended only for eligible activities described in this
9    Eligible foreclosure mitigation activities are mortgage
10foreclosure housing counseling, mortgage foreclosure legal
11services, community-based outreach, and administration of
12comprehensive court-sponsored foreclosure mediation programs.
13    Eligible entities are HUD-approved housing counseling
14agencies, civil legal services providers, not-for-profit
15corporations, and governmental agencies.
16    (c) All of the moneys in the Fund collected in counties
17with a population greater than 3,000,000 shall be used to make
18grants to eligible entities for eligible foreclosure
19mitigation activities to be carried out in coordination with
20comprehensive court-sponsored foreclosure mediation programs
21serving residents of the county in which the funds were
22collected. At least 75% of those moneys shall be used to make
23grants to eligible entities for mortgage foreclosure housing
24counseling or mortgage foreclosure legal services.
25    (d) Moneys in the Fund collected in counties with a
26population less than 3,000,000 shall be used to make grants to



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1eligible entities for eligible foreclosure mitigation
2activities serving residents of the county in which the funds
3were collected. At least 75% of those moneys shall be used to
4make grants to eligible entities for mortgage foreclosure
5housing counseling or mortgage foreclosure legal services.
6    (e) All grants shall be made by the Illinois Housing
7Development Authority (IHDA). IHDA may prescribe reasonable
8rules for the administration of this Section.
9    (735 ILCS 5/15-1512)  (from Ch. 110, par. 15-1512)
10    Sec. 15-1512. Application of Proceeds of Sale and Surplus.
11The proceeds resulting from a sale of real estate under this
12Article shall be applied in the following order:
13    (a) the reasonable expenses of sale;
14    (b) the reasonable expenses of securing possession before
15sale, holding, maintaining, and preparing the real estate for
16sale, including payment of taxes and other governmental
17charges, premiums on hazard and liability insurance,
18receiver's and management fees, the Mortgage Foreclosure
19Prevention Fee, and, to the extent provided for in the mortgage
20or other recorded agreement and not prohibited by law,
21reasonable attorneys' fees, payments made pursuant to Section
2215-1505 and other legal expenses incurred by the mortgagee;
23    (c) if the sale was pursuant to judicial foreclosure,
24satisfaction of claims in the order of priority adjudicated in
25the judgment of foreclosure or order confirming the sale; and



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1    (d) remittance of any surplus to be held by the person
2appointed by the court to conduct the sale until further order
3of the court. If there is a surplus, such person conducting the
4sale shall send written notice to all parties to the proceeding
5advising them of the amount of the surplus, and that the
6surplus shall be held until a party obtains a court order for
7its distribution or until, in the absence of an order, the
8surplus is forfeited to the State.
9(Source: P.A. 86-974.)
10    Section 10. The State Finance Act is amended by adding
11Section 5.786 as follows:
12    (30 ILCS 105/5.786 new)
13    Sec. 5.786. The Mortgage Foreclosure Prevention Fund.
14    Section 99. Effective date. This Act takes effect upon
15becoming law.