Mortgage foreclosures have attracted more attention from the Illinois legislature. Illinois has enacted legislation which changes laws applicable to residential mortgage foreclosure cases. A specific "Homeowner Notice" must now be attached to the Summons in such cases. Notices of Foreclosure must now be served upon the Illinois Department of Financial and Professional Regulations. Notices of sale must now be sent to mortgagors previously held in default. Upon written demand, a mortgagee and its authorized agent must, within 10 days of receipt of that demand, prepare and deliver a payoff statement with specific information, or be subject to penalty or a damage claim. A defendant who prevails in a motion, affirmative defense or counterclaim, or in the residential foreclosure, may also now be awarded attorneys' fees and costs by the court.

In addition, the Illinois Code of Civil Procedure has been amended (effective April 6, 2009) to prohibit mortgagees of residential property occupied by mortgagors from initiating mortgage foreclosure suits on loans delinquent more than 30 days, unless a specified 30 day notice is first sent. If an approved counseling agency notifies the mortgagee that the mortgagor is seeking counseling services, then there is another 30 day stay of the filing of such a suit. The actual statutes should be consulted. Our Firm can assist its lender clients in understanding and navigating these recent changes in the law.