Topic: Mortgage Foreclosures
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Do you see any problems with making a mortgage loan secured by an Illinois home to a non-U.S. citizen who lives in Illinois? How would we collect if the borrower defaults on the loan? Would we have to litigate in a foreign country?
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Lending to a non-U.S. citizen is a business decision that depends on the amount of risk your institution is willing to accept. Should the borrower default on the loan, you may have to litigate in U.S. federal court, where rules and procedures will differ from Illinois state courts. The choice between initiating a collection action…
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We have a balloon loan that has matured, and we are not renewing the loan. The customer has not made the balloon payment. Did the new RESPA 120 day foreclosure grace period begin to run after the loan matured?
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Please note that this answer discusses the Illinois grace period notice requirement, which expired on July 1, 2016, pursuant to a sunset provision. Please see 735 ILCS 5/15-1502.5. Yes, we believe the loan should be considered “delinquent,” because it has matured and the borrower has not paid the balloon payment. The new RESPA servicing rules…