Update: Illinois Mortgage Foreclosure Act and Senate Bill 2725

Published On 2008-11-24
Update: Illinois Mortgage Foreclosure Act and Senate Bill 2725

Illinois Real Estate Investors must be made aware of Senate Bill 2725 dealing with the Mortgage Foreclosure Act. Senate Bill 2725 is on its second reading in the Illinois House of Representatives and if it passes can have a detrimental effect on any real estate investor purchasing properties at foreclosure sales.

If Senate Bill 2725 is enacted it will create a 90 day stay in Illinois courts to any pending mortgage foreclosure. Moreover it places a moratorium on the filing of any new foreclosure actions for the 90 days following the enactment. As the bill is currently written it also appears to place a 90 day stay on any hearings to confirm judicial sales or evictions following confirmation.

For those real estate investors who purchase properties at Illinois foreclosure sale auctions, this bill may create many roadblocks to getting sales confirmed and subsequently judicial deeds. Furthermore, the passage of this bill may create obstacles when trying to evict prior owners or tenants from the newly purchased property. If this bill is enacted the carry time on properties purchased at foreclosure sales may be much longer than Illinois real estate investors had expected. It may take over 90 days, the length of the stay listed in the bill, to get a foreclosure sale confirmed.

Please note that this bill has not been enacted and any information contained in this article does not constitute legal advice.

Kevin Skalnik, Illinois Attorney at Law

Kevin Skalnik is a licensed real estate attorney in the State of Illinois whose law practice focuses on legal issues affecting real estate investors. To contact Kevin go to www.skalniklaw.com or call 773-386-8188.