Governor Quinn signed two new bills on August 2, according to the Illinois Government News Network. Of particular interest for our readers is Senate Bill 3739, which creates the Save Our Neighborhoods Act of 2010.
The bill provides funding to foreclosure prevention outreach groups and housing counselors. It generates some of this funding by adding an additional $50 fee for filing foreclosure actions. The bill also extends the Homeowner Protection Act. The Act requires lenders seeking foreclosure of residential mortgages to send the homeowner a 30 day grace period notice. Among other things, that notice informs homeowners that if they seek counseling from a HUD-approved counselor they will receive an additional 30 days to work something out with the bank. The bill extends this period to 90 days, which seems a bit more realistic given the difficulty that many people have with obtaining loan modifications.
The bill goes into effect January 1, 2011. We here at LOSA hope that it is a step towards alleviating the current mortgage crisis.
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