Illinois General Assembly - Full Text of HB1810
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Full Text of HB1810  97th General Assembly


Rep. Karen A. Yarbrough

Filed: 3/10/2011





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2    AMENDMENT NO. ______. Amend House Bill 1810 by replacing
3the title with the following:
4    "AN ACT concerning civil law."; and
5by replacing everything after the enacting clause with the
7    "Section 5. The Code of Civil Procedure is amended by
8changing Section 15-1512 and by adding Section 15-1510.5 as
10    (735 ILCS 5/15-1510.5 new)
11    Sec. 15-1510.5. Mortgage Foreclosure Prevention Fee.
12    (a) Definitions.
13        "Civil legal services provider" means a not-for-profit
14    corporation that (1) employs one or more attorneys who are
15    licensed to practice law in the State of Illinois and who



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1    directly provide civil legal services or (2) is established
2    for the purpose of providing civil legal services by an
3    organized panel of pro bono attorneys.
4        "Community-based outreach" means in-person contact
5    with mortgagors in foreclosure intended to inform such
6    mortgagors about the foreclosure process and the
7    mortgagors' rights and options for assistance in the
8    process, including the availability of mortgage
9    foreclosure housing counseling and mortgage foreclosure
10    legal services.
11        "Comprehensive court-sponsored foreclosure mediation
12    programs" means programs, administered at least in part by
13    an Illinois Circuit Court, that offer mediation in actions
14    for foreclosure. Programs shall provide mortgagors access
15    to housing counseling and legal services and include
16    community-based outreach.
17        "Governmental agency" means any State, county, or
18    local government body in Illinois, and any agency or
19    instrumentality thereof, corporate or otherwise.
20        "HUD-approved housing counseling agency" means a
21    mortgage foreclosure housing counseling agency that is
22    approved by the United States Department of Housing and
23    Urban Development, or any successor agency.
24        "Mortgage foreclosure housing counseling" means
25    housing counseling provided by a mortgage foreclosure
26    counselor that works for a HUD-approved housing counseling



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1    agency.
2        "Mortgage foreclosure legal services" means legal
3    services to mortgagors with an interest in a property
4    subject to a mortgage foreclosure proceeding under Article
5    XV of the Code of Civil Procedure provided by a civil legal
6    service attorney that works for a civil legal services
7    provider.
8        "Mortgage Foreclosure Prevention Fund" means a special
9    fund used expressly to support mortgage foreclosure
10    prevention programs.
11    (b) There shall be a $500 Mortgage Foreclosure Prevention
12Fee collected from the proceeds resulting from a judicial sale
13of residential real estate conducted pursuant to a foreclosure
14judgment under this Article. The fee shall be remitted to the
15Department of Revenue by the purchaser at the time of sale and
16the Department shall deposit these amounts into the Mortgage
17Foreclosure Prevention Fund. Amounts in the Fund may be
18expended only for eligible activities described in this
20    Eligible foreclosure mitigation activities are mortgage
21foreclosure housing counseling, mortgage foreclosure legal
22services, community-based outreach, and administration of
23comprehensive court-sponsored foreclosure mediation programs.
24    Eligible entities are HUD-approved housing counseling
25agencies, civil legal services providers, not-for-profit
26corporations, and governmental agencies.



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1    (c) All of the moneys in the Fund collected in counties
2with a population greater than 3,000,000 shall be used to make
3grants to eligible entities for eligible foreclosure
4mitigation activities to be carried out in coordination with
5comprehensive court-sponsored foreclosure mediation programs
6serving residents of the county in which the funds were
7collected. At least 75% of those moneys shall be used to make
8grants to eligible entities for mortgage foreclosure housing
9counseling or mortgage foreclosure legal services.
10    (d) Moneys in the Fund collected in counties with a
11population less than 3,000,000 shall be used to make grants to
12eligible entities for eligible foreclosure mitigation
13activities serving residents of the county in which the funds
14were collected. At least 75% of those moneys shall be used to
15make grants to eligible entities for mortgage foreclosure
16housing counseling or mortgage foreclosure legal services.
17    (e) All grants shall be made by the Illinois Housing
18Development Authority (IDHA). IHDA may prescribe reasonable
19rules for the administration of this Section.
20    (735 ILCS 5/15-1512)  (from Ch. 110, par. 15-1512)
21    Sec. 15-1512. Application of Proceeds of Sale and Surplus.
22The proceeds resulting from a sale of real estate under this
23Article shall be applied in the following order:
24    (a) the reasonable expenses of sale;
25    (b) the reasonable expenses of securing possession before



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1sale, holding, maintaining, and preparing the real estate for
2sale, including payment of taxes and other governmental
3charges, premiums on hazard and liability insurance,
4receiver's and management fees, the Mortgage Foreclosure
5Prevention Fee, and, to the extent provided for in the mortgage
6or other recorded agreement and not prohibited by law,
7reasonable attorneys' fees, payments made pursuant to Section
815-1505 and other legal expenses incurred by the mortgagee;
9    (c) if the sale was pursuant to judicial foreclosure,
10satisfaction of claims in the order of priority adjudicated in
11the judgment of foreclosure or order confirming the sale; and
12    (d) remittance of any surplus to be held by the person
13appointed by the court to conduct the sale until further order
14of the court. If there is a surplus, such person conducting the
15sale shall send written notice to all parties to the proceeding
16advising them of the amount of the surplus, and that the
17surplus shall be held until a party obtains a court order for
18its distribution or until, in the absence of an order, the
19surplus is forfeited to the State.
20(Source: P.A. 86-974.)
21    Section 10. The State Finance Act is amended by adding
22Section 5.786 as follows:
23    (30 ILCS 105/5.786 new)
24    Sec. 5.786. The Mortgage Foreclosure Prevention Fund.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".