New state foreclosure rules in place
The Illinois Supreme Court has established a new set of rules to help make it easier for homeowners to go through the foreclosure process.
The new rules, which go into effect March 1, were the result of 21 months of work by a 14-person committee.
Under the rules:
• Lenders must provide
homeowners with needed information so that they understand the process and consequences of foreclosure;
• Lenders are required to seek modification of loans for eligible homeowners before they complete foreclosure;
• There has to be improved legal notice to homeowners throughout the process and before the actual sale of a foreclosed home;
• Circuit courts in the state that have a mediation program have to provide resources for Department of Housing and Urban Development-certified consultation, free legal help and language interpretive services to those eligible and in need of them.
“These new rules will promote fairness in home foreclosure proceedings, curb abuses in the system, provide lenders finality when foreclosure is necessary and ensure homeowners who have been thrown out of work during the years of a troubled economy are aware of their rights and where to turn for help,” Chief Justice Thomas L. Kilbride said.
– Joseph Bustos