Illinois League Touts New State Foreclosure Law
The Illinois Credit Union League said it played a central role in advancing new legislation, establishing a fast track or expedited foreclosure process to remedy abandoned residential properties.
The Naperville-based league was involved in negotiations with state lawmakers over the last two years that led to the successful passage of Senate Bill 16. The new law balances the interests of consumers, lenders and local governments and provides solutions that address abandoned homes, according to the ICUL.
“Throughout the two-year process, the excellent reputation and respect credit unions have earned with legislators were very apparent,” said Stephen R. Olson, ICUL executive vice president and general counsel. “The active participation and support of Illinois credit unions played a key part in helping to pass this critical measure.”
The fast-track provision in SB 16 shortens the foreclosure process for abandoned properties by approximately 18 months.
The new foreclosure process will enable lenders to acquire properties with less damage and deterioration, making the homes more attractive for sale in the market, which benefits lenders, neighborhoods and communities, the ICUL said.
In addition to creating a more efficient foreclosure process for lenders, the new law also provides protections for consumers and local governments, the league said.
For example, the bill includes an additional residential foreclosure filing fee that will be paid by lenders. The new fee is expected to generate $48 million that will pay for cleaning up abandoned properties and providing housing counseling for struggling homeowners.
The bill, signed into law by Illinois Gov. Pat Quinn last week, also provides protection for lenders and their agents from criminal or civil liability when entering, securing or maintaining abandoned residential property.