HB1810ham001 97TH GENERAL ASSEMBLY

Rep. Karen A. Yarbrough

Filed: 3/10/2011

09700HB1810ham001 LRB097 09653 AJO 52642 a

AMENDMENT TO HOUSE BILL 1810

AMENDMENT NO. ______. Amend House Bill 1810 by replacing the title with the following:

"AN ACT concerning civil law."; and

by replacing everything after the enacting clause with the following:

"Section 5. The Code of Civil Procedure is amended by changing Section 15-1512 and by adding Section 15-1510.5 as follows:

(735 ILCS 5/15-1510.5 new)

Sec. 15-1510.5. Mortgage Foreclosure Prevention Fee.

(a) Definitions.

"Civil legal services provider" means a not-for-profit corporation that (1) employs one or more attorneys who are licensed to practice law in the State of Illinois and who directly provide civil legal services or (2) is established for the purpose of providing civil legal services by an organized panel of pro bono attorneys.

"Community-based outreach" means in-person contact with mortgagors in foreclosure intended to inform such mortgagors about the foreclosure process and the mortgagors' rights and options for assistance in the process, including the availability of mortgage foreclosure housing counseling and mortgage foreclosure legal services.

"Comprehensive court-sponsored foreclosure mediation programs" means programs, administered at least in part by an Illinois Circuit Court, that offer mediation in actions for foreclosure. Programs shall provide mortgagors access to housing counseling and legal services and include community-based outreach.

"Governmental agency" means any State, county, or local government body in Illinois, and any agency or instrumentality thereof, corporate or otherwise.

"HUD-approved housing counseling agency" means a mortgage foreclosure housing counseling agency that is approved by the United States Department of Housing and Urban Development, or any successor agency.

"Mortgage foreclosure housing counseling" means housing counseling provided by a mortgage foreclosure counselor that works for a HUD-approved housing counseling agency.

"Mortgage foreclosure legal services" means legal services to mortgagors with an interest in a property subject to a mortgage foreclosure proceeding under Article XV of the Code of Civil Procedure provided by a civil legal service attorney that works for a civil legal services provider.

"Mortgage Foreclosure Prevention Fund" means a special fund used expressly to support mortgage foreclosure prevention programs.

(b) There shall be a $500 Mortgage Foreclosure Prevention Fee collected from the proceeds resulting from a judicial sale of residential real estate conducted pursuant to a foreclosure judgment under this Article. The fee shall be remitted to the Department of Revenue by the purchaser at the time of sale and the Department shall deposit these amounts into the Mortgage Foreclosure Prevention Fund. Amounts in the Fund may be expended only for eligible activities described in this Section.

Eligible foreclosure mitigation activities are mortgage foreclosure housing counseling, mortgage foreclosure legal services, community-based outreach, and administration of comprehensive court-sponsored foreclosure mediation programs.

Eligible entities are HUD-approved housing counseling agencies, civil legal services providers, not-for-profit corporations, and governmental agencies.

(c) All of the moneys in the Fund collected in counties with a population greater than 3,000,000 shall be used to make grants to eligible entities for eligible foreclosure mitigation activities to be carried out in coordination with comprehensive court-sponsored foreclosure mediation programs serving residents of the county in which the funds were collected. At least 75% of those moneys shall be used to make grants to eligible entities for mortgage foreclosure housing counseling or mortgage foreclosure legal services.

(d) Moneys in the Fund collected in counties with a population less than 3,000,000 shall be used to make grants to eligible entities for eligible foreclosure mitigation activities serving residents of the county in which the funds were collected. At least 75% of those moneys shall be used to make grants to eligible entities for mortgage foreclosure housing counseling or mortgage foreclosure legal services.

(e) All grants shall be made by the Illinois Housing Development Authority (IDHA). IHDA may prescribe reasonable rules for the administration of this Section.

(735 ILCS 5/15-1512) (from Ch. 110, par. 15-1512)

Sec. 15-1512. Application of Proceeds of Sale and Surplus. The proceeds resulting from a sale of real estate under this Article shall be applied in the following order:

(a) the reasonable expenses of sale;

(b) the reasonable expenses of securing possession before sale, holding, maintaining, and preparing the real estate for sale, including payment of taxes and other governmental charges, premiums on hazard and liability insurance, receiver's and management fees, the Mortgage Foreclosure Prevention Fee, and, to the extent provided for in the mortgage or other recorded agreement and not prohibited by law, reasonable attorneys' fees, payments made pursuant to Section 15-1505 and other legal expenses incurred by the mortgagee;

(c) if the sale was pursuant to judicial foreclosure, satisfaction of claims in the order of priority adjudicated in the judgment of foreclosure or order confirming the sale; and

(d) remittance of any surplus to be held by the person appointed by the court to conduct the sale until further order of the court. If there is a surplus, such person conducting the sale shall send written notice to all parties to the proceeding advising them of the amount of the surplus, and that the surplus shall be held until a party obtains a court order for its distribution or until, in the absence of an order, the surplus is forfeited to the State.

(Source: P.A. 86-974.)

Section 10. The State Finance Act is amended by adding Section 5.786 as follows:

(30 ILCS 105/5.786 new)

Sec. 5.786. The Mortgage Foreclosure Prevention Fund.

Section 99. Effective date. This Act takes effect upon becoming law.".