The Illinois Credit Union League said it played a central rolein advancing new legislation, establishing a fast track orexpedited foreclosure process to remedy abandoned residentialproperties.

The Naperville-based league was involved in negotiations withstate lawmakers over the last two years that led to the successfulpassage of Senate Bill 16. The new law balances the interests ofconsumers, lenders and local governments and provides solutionsthat address abandoned homes, according to the ICUL.

“Throughout the two-year process, the excellent reputation andrespect credit unions have earned with legislators were veryapparent,” said Stephen R. Olson, ICUL executive vice president andgeneral counsel. “The active participation and support of Illinoiscredit unions played a key part in helping to pass this criticalmeasure.”

The fast-track provision in SB 16 shortens the foreclosureprocess for abandoned properties by approximately 18 months.

The new foreclosure process will enable lenders to acquireproperties with less damage and deterioration, making the homesmore attractive for sale in the market, which benefits lenders,neighborhoods and communities, the ICUL said.

In addition to creating a more efficient foreclosure process forlenders, the new law also provides protections for consumers andlocal governments, the league said.

For example, the bill includes an additional residentialforeclosure filing fee that will be paid by lenders. The new fee isexpected to generate $48 million that will pay for cleaning upabandoned properties and providing housing counseling forstruggling homeowners.

The bill, signed into law by Illinois Gov. Pat Quinn last week,also provides protection for lenders and their agents from criminalor civil liability when entering, securing or maintaining abandonedresidential property.