Page 23 - John Hundley 2013

Mortgage Law Roundup

Sharp Thinking

No. 93 Perspectives on Developments in the Law from The Sharp Law Firm, P.C. June 2013

For Abandoned Residential Real Estate …
“Fast Track” Foreclosure Bill Becomes Law

Illinois residential real estate that has been abandoned now is subject to “fast track” judicial
foreclosure procedures aimed at minimizing the blight effects which abandoned houses have been
having during the usual foreclosure process.

Findings Made: P.A. 97-1164 made the changes and became law on June 1. It amends the
Illinois Mortgage Foreclosure Law, 735 ILCS 5/15-1101 et seq., to find that
“residential mortgage foreclosures and the abandoned properties that sometimes
follow create enormous challenges for Illinois residents, local governments, and
the courts, reducing neighboring property values, reducing the tax base,
increasing crime, placing neighbors at greater risk of foreclosure, imposing
additional costs on local governments, and increasing the burden on the courts
of this State.” It further finds that for “when a property is abandoned, the lengthy
foreclosure process harms lien-holders, neighbors, and local governments, and imposes significant
and unnecessary burdens on the courts”.

“Abandoned” Property Defined: “Abandoned residential property” eligible for the fast-track
provisions cannot be occupied by a lawful occupant as a principal residence, and can include
incomplete structures in real estate developments if they are in need of maintenance, repair or
securing. In addition, two or more of the following conditions must exist for property with a structure:

► incomplete construction leaving the building unsuitable for occupancy with no construction
taking place for at least 6 months;

► multiple windows boarded up, smashed through or unhinged;

► doors smashed through, broken off, unhinged or continuously unlocked;

► the property has been stripped of copper, other materials, or interior fixtures;

► utility services to the property have been terminated;

► a written statement of the mortgagor, his representative or assign, indicating a clear intent to
abandon the property;

► law enforcement has received a recent report of trespassing, vandalism or other illegal acts
being committed at the property;

► the property has been declared unfit for occupancy and ordered to be vacant by a court or
other local authority;

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Sharp Thinking is an occasional newsletter of The Sharp Law Firm, P.C. addressing developments in the law which may be of interest. Nothing contained in Sharp
Thinking shall be construed to create an attorney-client relation where none previously has existed, nor with respect to any particular matter. The perspectives herein
constitute educational material on general legal topics and are not legal advice applicable to any particular situation. To establish an attorney-client relation or to obtain legal
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