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Governor Quinn Signs Fast-Track Foreclosure Bill into Law

Governor Quinn signed into law a measure that is expected to shorten the foreclosure timeline on abandoned properties, raise fees paid by foreclosing lenders and provide counseling to homeowners. This law will help restore neighborhoods and property values by shortening the foreclosure process to a few months, down from what now takes nearly two years. Single family homes and multi units that are not legally occupied will be eligible for an expedited foreclosure process that could be completed in as little as 90 days! The previous IL law dragged on the foreclosure for almost two years which allowed the abandoned vacant homes to become bases for crime and not to mention the damage vacant homes do to local property values. This law addresses the problems of abandoned properties that communities face and it will also help the investors who purchase vacant homes get possession of these homes faster and hopefully with a lot less damage. This new law will also help working families who are at risk of foreclosure from losing their homes by directing filing fees paid by mortgage-issuers into two funds maintained by the IHDA: the Foreclosur

e Prevention Program Fund, and the Abandoned Property Municipality Relief Program. Through the end of 2017, banks and other lending institutions will pay fees on a sliding scale depending on how many foreclosures they file each year. An institution that files more than 175 foreclosures will pay $500 per foreclosure, while one with between 50 and 175 will pay $250 per foreclosure, and those with less than 50 foreclosures a year will  pay $50 per filing. The law is expected to generate more than $120 million over the next three years. These lender fees mentioned above are expected to provide an estimated $28 million annually to local governments to maintain and secure abandoned residential properties to get them back into productive use. It will also provide an estimated $13 million annually for housing counseling assistance, which will help provide support to an additional 18,000 households struggling to keep their homes. This law takes effect June 1.