|
grants to approved counseling agencies that provide |
services in Illinois outside of the City of Chicago. Grants |
shall be based upon the number of foreclosures filed in an |
approved counseling agency's service area, the capacity of |
the agency to provide foreclosure counseling services, and |
any other factors that the Authority deems appropriate. |
(2) 25% of the moneys in the Fund shall be distributed |
to the City of Chicago to make grants to approved |
counseling agencies located within the City of Chicago for |
approved housing counseling or to support foreclosure |
prevention counseling programs administered by the City of |
Chicago. |
(3) 25% of the moneys in the Fund shall be used to make |
grants to approved community-based organizations located |
outside of the City of Chicago for approved foreclosure |
prevention outreach programs. |
(4) 25% of the moneys in the Fund shall be used to make |
grants to approved community-based organizations located |
within the City of Chicago for approved foreclosure |
prevention outreach programs. |
As used in this Section: |
"Approved community-based organization" means a |
not-for-profit entity that provides educational and financial |
information to residents of a community through in-person |
contact. "Approved community-based organization" does not |
include a not-for-profit corporation or other entity or person |
|
that provides legal representation or advice in a civil |
proceeding or court-sponsored mediation services, or a |
governmental agency. |
"Approved foreclosure prevention outreach program" means a |
program developed by an approved community-based organization |
that includes in-person contact with residents to provide (i) |
pre-purchase and post-purchase home ownership counseling, (ii) |
education about the foreclosure process and the options of a |
mortgagor in a foreclosure proceeding, and (iii) programs |
developed by an approved community-based organization in |
conjunction with a State or federally chartered financial |
institution. |
(c) As used in this Section, "approved counseling agencies" |
and "approved housing counseling" have the meanings ascribed to |
those terms in Section 15-1502.5 of the Code of Civil |
Procedure.
|
(20 ILCS 3805/7.31 new) |
Sec. 7.31. Abandoned Residential Property Municipality |
Relief Program. |
(a) The Authority shall establish and administer an |
Abandoned Residential Property Municipality Relief Program. |
The Authority shall use moneys in the Abandoned Residential |
Property Municipality Relief Fund, and any other funds |
appropriated for this purpose, to make grants to municipalities |
to assist with removal costs and securing or enclosing costs |
|
incurred by the municipality pursuant to Section 11-20-15.1 of |
the Illinois Municipal Code, as approved by the Authority under |
the Program. The Authority shall promulgate rules for the |
administration, operation, and maintenance of the Program and |
may adopt emergency rules as soon as practicable to begin |
implementation of the Program. |
(b) Subject to
appropriation, the Authority shall make |
grants from the Abandoned Residential Property Municipality |
Relief Fund as follows: |
(1) 75% of the moneys in the Fund shall be distributed |
to municipalities, other than the City of Chicago, to |
assist with removal costs and securing or enclosing costs |
incurred by the municipality pursuant to Section |
11-20-15.1 of the Illinois Municipal Code. |
(2) 25% of the moneys in the Fund shall be distributed |
to the City of Chicago to assist with removal costs and |
securing or enclosing costs incurred by the municipality |
pursuant to Section 11-20-15.1 of the Illinois Municipal |
Code.
|
Section 10. The Illinois Municipal Code is amended by |
changing Section 11-20-15.1 as follows:
|
(65 ILCS 5/11-20-15.1)
|
Sec. 11-20-15.1. Lien for costs of removal, securing, and |
enclosing on abandoned residential property. |
|
(a) If the municipality elects to incur a removal cost |
pursuant to subsection (d) of Section 11-20-7, subsection (d) |
of Section 11-20-8, subsection (d) of Section 11-20-12, or |
subsection (e) of Section 11-20-13, or a securing or enclosing |
cost pursuant to Section 11-31-1.01 with respect to an |
abandoned residential property, then that cost is a lien upon |
the underlying parcel of that abandoned residential property. |
This lien is superior to all other liens and encumbrances, |
except tax liens and as otherwise provided in this Section. |
(b) To perfect a lien under this Section, the municipality |
must, within one year after the cost is incurred for the |
activity, file notice of the lien in the office of the recorder |
in the county in which the abandoned residential property is |
located or, if the abandoned residential property is registered |
under the Torrens system, in the office of the Registrar of |
Titles of that county, a sworn statement setting out: |
(1) a description of the abandoned residential |
property that sufficiently identifies the parcel; |
(2) the amount of the cost of the activity; |
(3) the date or dates when the cost for the activity |
was incurred by the municipality; and |
(4) a statement that the lien has been filed pursuant |
to subsection (d) of Section 11-20-7, subsection (d) of |
Section 11-20-8, subsection (d) of Section 11-20-12, |
subsection (e) of Section 11-20-13, or Section 11-31-1.01, |
as applicable. |
|
If, for any abandoned residential property, the |
municipality engaged in any activity on more than one occasion |
during the course of one year, then the municipality may |
combine any or all of the costs of each of those activities |
into a single notice of lien. |
(c) To enforce a lien pursuant to this Section, the |
municipality must maintain contemporaneous records that |
include, at a minimum: (i) a dated statement of finding by the |
municipality that the property for which the work is to be |
performed has become abandoned residential property, which |
shall include (1) the date when the property was first known or |
observed to be unoccupied by any lawful occupant or occupants, |
(2) a description of the actions taken by the municipality to |
contact the legal owner or owners of the property identified on |
the recorded mortgage, or, if known, any agent of the owner or |
owners, including the dates such actions were taken, and (3) a |
statement that no contacts were made with the legal owner or |
owners or their agents as a result of such actions, (ii) a |
dated certification by an authorized official of the |
municipality of the necessity and specific nature of the work |
to be performed, (iii) a copy of the agreement with the person |
or entity performing the work that includes the legal name of |
the person or entity, the rate or rates to be charged for |
performing the work, and an estimate of the total cost of the |
work to be performed, (iv) detailed invoices and payment |
vouchers for all payments made by the municipality for such |
|
work, and (v) a statement as to whether the work was engaged |
through a competitive bidding process, and if so, a copy of all |
proposals submitted by the bidders for such work. |
(d) A lien under this Section shall be enforceable |
exclusively at the hearing for confirmation of sale of the |
abandoned residential property that is held pursuant to |
subsection (b) of Section 15-1508 of the Code of Civil |
Procedure and shall be limited to a claim of interest in the |
proceeds of the sale and subject to the requirements of this |
Section. Any mortgagee who holds a mortgage on the property, or |
any beneficiary or trustee who holds a deed of trust on the |
property, may contest the lien or the amount of the lien at any |
time during the foreclosure proceeding upon motion and notice |
in accordance with court rules applicable to motions generally. |
Grounds for forfeiture of the lien or the superior status of |
the lien granted by subsection (a) of this Section shall |
include, but not be limited to, a finding by the court that: |
(i) the municipality has not complied with subsection (b) or |
(c) of this Section, (ii) the scope of the work was not |
reasonable under the circumstances, (iii) the work exceeded the |
authorization for the work to be performed under subsection (a) |
of Section 11-20-7, subsection (a) of Section 11-20-8, |
subsection (a) of Section 11-20-12, subsection (a) of Section |
11-20-13, or subsection (a) of Section 11-31-1.01, as |
applicable, or (iv) the cost of the services rendered or |
materials provided was not commercially reasonable. Forfeiture |
|
of the superior status of the lien otherwise granted by this |
Section shall not constitute a forfeiture of the lien as a |
subordinate lien. |
(e) Upon payment of the amount of a lien filed under this |
Section by the mortgagee, servicer, owner, or any other person, |
the municipality shall release the lien, and the release may be |
filed of record by the person making such payment at the |
person's sole expense as in the case of filing notice of lien. |
(f) Notwithstanding any other provision of this Section, a |
municipality may not file a lien pursuant to this Section for |
activities performed pursuant to Section 11-20-7, Section |
11-20-8, Section 11-20-12, Section 11-20-13, or Section |
11-31-1.01, if: (i) the mortgagee or servicer of the abandoned |
residential property has provided notice to the municipality |
that the mortgagee or servicer has performed or will perform |
the remedial actions specified in the notice that the |
municipality otherwise might perform pursuant to subsection |
(d) of Section 11-20-7, subsection (d) of Section 11-20-8, |
subsection (d) of Section 11-20-12, subsection (e) of Section |
11-20-13, or Section 11-31-1.01, provided that the remedial |
actions specified in the notice have been performed or are |
performed or initiated in good faith within 30 days of such |
notice; or (ii) the municipality has provided notice to the |
mortgagee or servicer of a problem with the property requiring |
the remedial actions specified in the notice that the |
municipality otherwise would perform pursuant to subsection |
|
(d) of Section 11-20-7, subsection (d) of Section 11-20-8, |
subsection (d) of Section 11-20-12, subsection (e) of Section |
11-20-13, or Section 11-31-1.01, and the mortgagee or servicer |
has performed or performs or initiates in good faith the |
remedial actions specified in the notice within 30 days of such |
notice. |
(g) This Section and subsection (d) of Section 11-20-7, |
subsection (d) of Section 11-20-8, subsection (d) of Section |
11-20-12, subsection (e) of Section 11-20-13, or Section |
11-31-1.01 shall apply only to activities performed, costs |
incurred, and liens filed after the effective date of this |
amendatory Act of the 96th General Assembly. |
(h) For the purposes of this Section and subsection (d) of |
Section 11-20-7, subsection (d) of Section 11-20-8, subsection |
(d) of Section 11-20-12, subsection (e) of Section 11-20-13, or |
Section 11-31-1.01: |
"Abandoned residential property" means any type of |
permanent residential dwelling unit, including detached single |
family structures, and townhouses, condominium units and |
multifamily rental apartments covering the entire property, |
and manufactured homes treated under Illinois law as real |
estate and not as personal property, that has been unoccupied |
by any lawful occupant or occupants for at least 90 days, and |
for which after such 90 day period, the municipality has made |
good faith efforts to contact the legal owner or owners of the |
property identified on the recorded mortgage, or, if known, any |
|
agent of the owner or owners, and no contact has been made. A |
property for which the municipality has been given notice of |
the order of confirmation of sale pursuant to subsection (b-10) |
of Section 15-1508 of the Code of Civil Procedure shall not be |
deemed to be an abandoned residential property for the purposes |
of subsection (d) of Section 11-20-7, subsection (d) of Section |
11-20-8, subsection (d) of Section 11-20-12, subsection (e) of |
Section 11-20-13, and Section 11-31-1.01 of this Code. |
"MERS program" means the nationwide Mortgage Electronic |
Registration System approved by Fannie Mae, Freddie Mac, and |
Ginnie Mae that has been created by the mortgage banking |
industry with the mission of registering every mortgage loan in |
the United States to lawfully make information concerning each |
residential mortgage loan and the property securing it |
available by Internet access to mortgage originators, |
servicers, warehouse lenders, wholesale lenders, retail |
lenders, document custodians, settlement agents, title |
companies, insurers, investors, county recorders, units of |
local government, and consumers. |
(i) Any entity or person who performs a removal, securing, |
or enclosing activity pursuant to the authority of a |
municipality under subsection (d) of Section 11-20-7, |
subsection (d) of Section 11-20-8, subsection (d) of Section |
11-20-12, subsection (e) of Section 11-20-13, or Section |
11-31-1.01, may, in its, his, or her own name, file a lien |
pursuant to subsection (b) of this Section and appear in a |
|
foreclosure action on that lien pursuant to subsection (d) of |
this Section in the place of the municipality, provided that |
the municipality shall remain subject to subsection (c) of this |
Section, and such party shall be subject to all of the |
provisions in this Section as if such party were the |
municipality. |
(i-5) All amounts received by the municipality for costs |
incurred pursuant to this Section
for which the municipality |
has been reimbursed under Section 7.31 of the Illinois Housing |
Development Act
shall be remitted to the State Treasurer for |
deposit into the Abandoned Residential Property
Municipality |
Relief Fund. |
(j) If prior to subsection (d) of Section 11-20-7, |
subsection (d) of Section 11-20-8, subsection (d) of Section |
11-20-12, and subsection (e) of Section 11-20-13 becoming |
inoperative a lien is filed pursuant to any of those |
subsections, then the lien shall remain in full force and |
effect after the subsections have become inoperative, subject |
to all of the provisions of this Section. If prior to the |
repeal of Section 11-31-1.01 a lien is filed pursuant to |
Section 11-31-1.01, then the lien shall remain in full force |
and effect after the repeal of Section 11-31-1.01, subject to |
all of the provisions of this Section.
|
(Source: P.A. 96-856, eff. 3-1-10.)
|
Section 15. The Code of Civil Procedure is amended by |
|
changing Section 15-1502.5 and by adding Sections 15-1504.1 and |
15-1507.1 as follows:
|
(735 ILCS 5/15-1502.5) |
(Section scheduled to be repealed on April 6, 2011) |
Sec. 15-1502.5. Homeowner protection. |
(a) As used in this Section: |
"Approved counseling agency" means a housing counseling |
agency approved by the U.S. Department of Housing and Urban |
Development. |
"Approved Housing Counseling" means in-person counseling |
provided by a counselor employed by an approved counseling |
agency to all borrowers, or documented telephone counseling |
where a hardship would be imposed on one or more borrowers. A |
hardship shall exist in instances in which the borrower is |
confined to his or her home due to medical conditions, as |
verified in writing by a physician or the borrower resides 50 |
miles or more from the nearest approved counseling agency. In |
instances of telephone counseling, the borrower must supply all |
necessary documents to the counselor at least 72 hours prior to |
the scheduled telephone counseling session. |
"Delinquent" means past due with respect to a payment on a |
mortgage secured by residential real estate. |
"Department" means the Department of Financial and |
Professional Regulation. |
"Secretary" means the Secretary of Financial and |
|
Professional Regulation or other person authorized to act in |
the Secretary's stead. |
"Sustainable loan workout plan" means a plan that the |
mortgagor and approved counseling agency believe shall enable |
the mortgagor to stay current on his or her mortgage payments |
for the foreseeable future when taking into account the |
mortgagor income and existing and foreseeable debts. A |
sustainable loan workout plan may include, but is not limited |
to, (1) a temporary suspension of payments, (2) a lengthened |
loan term, (3) a lowered or frozen interest rate, (4) a |
principal write down, (5) a repayment plan to pay the existing |
loan in full, (6) deferred payments, or (7) refinancing into a |
new affordable loan. |
(b) Except in the circumstance in which a mortgagor has |
filed a petition for relief under the United States Bankruptcy |
Code, no mortgagee shall file a complaint to foreclose a |
mortgage secured by residential real estate until the |
requirements of this Section have been satisfied. |
(c) Notwithstanding any other provision to the contrary, |
with respect to a particular mortgage secured by residential |
real estate, the procedures and forbearances described in this |
Section apply only once per subject mortgage. |
Except for mortgages secured by residential real estate in |
which any mortgagor has filed for relief under the United |
States Bankruptcy Code, if a mortgage secured by residential |
real estate becomes delinquent by more than 30 days the |
|
mortgagee shall send via U.S. mail a notice advising the |
mortgagor that he or she may wish to seek approved housing |
counseling. Notwithstanding anything to the contrary in this |
Section, nothing shall preclude the mortgagor and mortgagee |
from communicating with each other during the initial 30 days |
of delinquency or reaching agreement on a sustainable loan |
workout plan, or both. |
No foreclosure action under Part 15 of Article XV of the |
Code of Civil Procedure shall be instituted on a mortgage |
secured by residential real estate before mailing the notice |
described in this subsection (c). |
The notice required in this subsection (c) shall state the |
date on which the notice was mailed, shall be headed in bold |
14-point type "GRACE PERIOD NOTICE", and shall state the |
following in 14-point type:
"YOUR LOAN IS MORE THAN 30 DAYS |
PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY |
BE IN YOUR BEST INTEREST TO SEEK APPROVED HOUSING COUNSELING. |
YOU HAVE A GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS NOTICE |
TO OBTAIN APPROVED HOUSING COUNSELING. DURING THE GRACE PERIOD, |
THE LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU. |
YOU MAY BE ENTITLED TO AN ADDITIONAL 30 DAY GRACE PERIOD IF YOU |
OBTAIN HOUSING COUNSELING FROM AN APPROVED HOUSING COUNSELING |
AGENCY.
A LIST OF APPROVED COUNSELING AGENCIES MAY BE OBTAINED |
FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL |
REGULATION." |
The notice shall also list the Department's current |
|
consumer hotline, the Department's website, and the telephone |
number, fax number, and mailing address of the mortgagee. No |
language, other than language substantially similar to the |
language prescribed in this subsection (c), shall be included |
in the notice. Notwithstanding any other provision to the |
contrary, the grace period notice required by this subsection |
(c) may be combined with a counseling notification required |
under federal law. |
The sending of the notice required under this subsection |
(c) means depositing or causing to be deposited into the United |
States mail an envelope with first-class postage prepaid that |
contains the document to be delivered. The envelope shall be |
addressed to the mortgagor at the common address of the |
residential real estate securing the mortgage. |
(d) Until 30 days after mailing the notice provided for |
under subsection (c) of this Section, no legal action shall be |
instituted under Part 15 of Article XV of the Code of Civil |
Procedure. |
(e) If, within the 30-day period provided under subsection |
(d) of this Section, an approved counseling agency provides |
written notice to the mortgagee that the mortgagor is seeking |
approved counseling services, then no legal action under Part |
15 of Article XV of the Code of Civil Procedure shall be |
instituted for 30 days after the date of that notice. The date |
that such notice is sent shall be stated in the notice, and |
shall be sent to the address or fax number contained in the |
|
Grace Period Notice required under subsection (c) of this |
Section. During the 30-day period provided under this |
subsection (e), the mortgagor or counselor or both may prepare |
and proffer to the mortgagee a proposed sustainable loan |
workout plan. The mortgagee will then determine whether to |
accept the proposed sustainable loan workout plan. If the |
mortgagee and the mortgagor agree to a sustainable loan workout |
plan, then no legal action under Part 15 of Article XV of the |
Code of Civil Procedure shall be instituted for as long as the |
sustainable loan workout plan is complied with by the |
mortgagor. |
The agreed sustainable loan workout plan and any |
modifications thereto must be in writing and signed by the |
mortgagee and the mortgagor. |
Upon written notice to the mortgagee, the mortgagor may |
change approved counseling agencies, but such a change does not |
entitle the mortgagor to any additional period of forbearance. |
(f) If the mortgagor fails to comply with the sustainable |
loan workout plan, then nothing in this Section shall be |
construed to impair the legal rights of the mortgagee to |
enforce the contract. |
(g) A counselor employed by a housing counseling agency or |
the housing counseling agency that in good faith provides |
counseling shall not be liable to a mortgagee or mortgagor for |
civil damages, except for willful or wanton misconduct on the |
part of the counselor in providing the counseling. |
|
(h) There shall be no waiver of any provision of this |
Section. |
(i) It is the General Assembly's intent that compliance |
with this Section shall not prejudice a mortgagee in ratings of |
its bad debt collection or calculation standards or policies. |
(j) This Section shall not apply, or shall cease to apply, |
to residential real estate that is not occupied as a principal |
residence by the mortgagor. |
(k) This Section is repealed July 1, 2013 2 years after the |
effective date of this amendatory Act of the 95th General |
Assembly.
|
(Source: P.A. 95-1047, eff. 4-6-09.)
|
(735 ILCS 5/15-1504.1 new) |
Sec. 15-1504.1. Filing fee for Foreclosure Prevention |
Program Fund. |
(a) With respect to residential real estate, at the time of |
the filing of a foreclosure complaint, the plaintiff shall pay |
to the clerk of the court in which the foreclosure complaint is |
filed a fee of $50 for deposit into the Foreclosure Prevention |
Program Fund, a special
fund created in the State treasury. The |
clerk shall remit the fee to the State Treasurer as provided in |
this Section to be expended for the purposes set forth in |
Section 7.30 of the Illinois Housing Development Act. All fees |
paid by plaintiffs to the clerk of the court as provided in |
this Section shall be disbursed within 60 days after receipt by |
|
the clerk of the court as follows: (i) 98% to the State |
Treasurer for deposit into the Foreclosure Prevention |
Counseling Program Fund, and (ii) 2% to the clerk of the court |
for administrative expenses related to implementation of this |
Section. |
(b) Not later than March 1 of each year, the clerk of the |
court shall submit to the Illinois Housing Development |
Authority a report of the funds collected and remitted pursuant |
to this Section during the preceding year.
|
(735 ILCS 5/15-1507.1 new) |
Sec. 15-1507.1. Judicial sale fee for Abandoned |
Residential Property Municipality Relief Fund. |
(a) Upon and at the sale of residential real estate under |
Section 15-1507, the purchaser shall pay to the person |
conducting the sale pursuant to Section 15-1507 a fee for |
deposit into the Abandoned Residential Property Municipality |
Relief Fund, a special
fund created in the State treasury. The |
fee shall be calculated at the rate of $1 for each $1,000 or |
fraction thereof of the amount paid by the purchaser to the |
person conducting the sale, as reflected in the receipt of sale |
issued to the purchaser, provided that in no event shall the |
fee exceed $300. No fee shall be paid by the mortgagee |
acquiring the residential real estate pursuant to its credit |
bid at the sale or by any mortgagee, judgment creditor, or |
other lienor acquiring the residential real estate whose rights |
|
in and to the residential real estate arose prior to the sale. |
Upon confirmation of the sale under Section 15-1508, the person |
conducting the sale shall remit the fee to the clerk of the |
court in which the foreclosure case is pending. The clerk shall |
remit the fee to the State Treasurer as provided in this |
Section, to be expended for the purposes set forth in Section |
7.31 of the Illinois Housing Development Act. |
(b) All fees paid by purchasers as provided in this Section |
shall be disbursed within 60 days after receipt by the clerk of |
the court as follows: (i) 98% to the State Treasurer for |
deposit into the Abandoned Residential Property Municipality |
Relief Fund, and (ii) 2% to the clerk of the court for |
administrative expenses related to implementation of this |
Section. |
(c) Not later than March 1 of each year, the clerk of the |
court shall submit to the Illinois Housing Development |
Authority a report of the funds collected and remitted during |
the preceding year pursuant to this Section. |
(d) Subsections (a) and (b) of this Section shall become |
inoperative on January 1, 2016. This Section is repealed on |
March 2, 2016.
|
Section 20. The State Finance Act is amended by adding |
Sections 5.755 and 5.756 as follows:
|
(30 ILCS 105/5.755 new) |