(MCT) — The Illinois Supreme Court announced Monday that new mortgage foreclosure rules will take effect May 1, and borrower outreach requirements will apply to all cases that have not received judgments, regardless of when they were filed.
Before seeking a foreclosure judgment against a borrower who has appeared in court or filed documents in the case, a lender will have to file an affidavit with the court showing the types of loan modification or other programs available for an individual borrower, what steps were taken to offer that help and the status of those outreach efforts.
After the rules were announced in February, questions arose over whether the new safeguards would apply to only newly filed cases after a certain date or to all cases. The court's announcement Monday means the new loan mitigation requirements will apply May 1 to all foreclosure cases where a judgment has not been entered, regardless of when the case was filed.
Other aspects of the rules will only apply to new cases filed on or after May 1.
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