Topic: Mortgage Foreclosures
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Are there any remedies available to us if a borrower who is in foreclosure strips the home of any valuables? Would this violate any criminal laws?
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Your organization may have some contractual remedies against the borrower. The mortgage or note may require the borrower to maintain the property in good condition and may prohibit the borrower from removing improvements from the property (for example, in Section 7 of the Fannie Mae and Freddie Mac Uniform Security Instruments for Illinois). As to…
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Do we have to send out the 30-day Grace Period Notice if we do not intend to file a foreclosure action?
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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. The Code of Civil Procedure requires that “if a mortgage secured by residential real estate becomes delinquent by more than 30 days the mortgagee shall send via…
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Where can I find the law governing foreclosures in Illinois?
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The Illinois foreclosure process is governed by the Illinois Mortgage Foreclosure Law, which is found within our Code of Civil Procedure. 735 ILCS 5/15-1101–15-1706. You may find the Illinois Institute for Continuing Legal Education (IICLE)’s Mortgage Foreclosure Practice book helpful, as it has a chapter devoted to commercial foreclosures in Illinois. Be aware that…
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Are the ordinary record retention requirements for loan documents extended if they are involved in a foreclosure or other litigation?
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Yes, we would recommend retaining documents used in foreclosures or other litigation beyond the ordinary record retention periods. If a foreclosure proceeding or litigation commences, we recommend using the retention period required by HUD: “If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record…
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Does Illinois law permit a purchaser of abandoned real property to take title free of any party’s redemption rights?
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Illinois law only provides for a shortened redemption period for abandoned properties; the redemption period expires thirty days after the judgment of foreclosure (rather than three months). 735 ILCS 5/15-1603(b)(4).