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Rules of foreclosure are explained by the Illinois Supreme Court

Back in February, the Illinois Supreme Court instituted some rules designed to protect homeowners involved in foreclosure proceedings. The new rules require lenders to give the court certain assurances prior to receiving a final judgment in a foreclosure case. Those assurances surround whether a homeowner has been notified of any options available to them before a foreclosure such as a loan modification. It also requires the lender to certify to the court that the homeowner was made aware of that legal proceedings had been filed against him or her.

Once the rules were established it became clear that the Illinois Supreme Court needed to establish some sort of effective date for these rules to go into effect. Lenders needed to know just how are back they would need to go in order to comply with the rules. With thousands of foreclosures filed across the state, the potential to backlog the system was apparent.

The Supreme Court recently decided that any foreclosure that has not reached a final judgment by April 30 will be subject to the new rules. Any final judgments issued from May 1 forward will only be given once the lender has certified to the court that the prescribed notifications have been given to the homeowner. Without this affidavit, a final judgment will not be granted.

It is possible that some homeowners that are currently involved in or facing foreclosure proceedings may get one more chance to save their home. If the lender failed to give the proper notifications to homeowners regarding options such as modification or mediation, the lender will now have to reach out to those homeowners to whom these and other options are available. Whether having these options will benefit a particular homeowner remains to be seen.

Source:, "Illinois Supreme Court clarifies foreclosure rules," Tim Landis, April 11, 2013

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