Rules Change for Chicago Foreclosures

There’s great news coming for those that are on the borderline of Chicago real estate foreclosure. New rules are coming soon to give a greater degree of protection to homeowners that are either faced with or approaching the edge of foreclosure. These new rules, which were announced by the Illinois Supreme Court, are designed to protect the tens of thousands of homeowners in Illinois who are at risk of falling into foreclosure by making sure they have options and ways to stay borrowers rather than lose their home.

One of the new rules is that lenders will have to prove to judges that they have exhausted all efforts to help a borrower before seeking judgment.

Another set of provisions in the new rules includes the option for private companies to step in to manage the sales of foreclosed properties, rather than having them managed by local sheriffs’ departments, who can take up to a year to bring property to market.

It takes an average of 697 days to complete a foreclosure in Illinois, one of the longest average processes in the country. These new initiatives are not expected to shorten the process, but will remove a portion of unnecessary foreclosures from the books.

The new rules will go into effect on June 1 and will apply to all mortgage servicers. They will require an affidavit with the court, which shows what alternatives to foreclosure have been offered before seeking a foreclosure judgment. These alternatives can include loan modification, debt forgiveness and more.  The rules also call for additional disclosure and notice to be sent to borrowers who are found to be in default on their mortgage.

For more information, visit the Illinois Supreme Court website.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.