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Illinois Legislative Update

 

The Spring Session of the Illinois General Assembly is currently in session and is scheduled to end on May 31st. This is a relatively inactive session as it pertains to real estate, mortgage and condominium legislation. The session is predominately concerned with finding solutions to the budgetary impasse facing the State. The following are the current Bills in process:

HB 4595: MAKING HOME AFFORDABLE-SUNSET

Synopsis As Introduced: Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that the provisions of a subsection concerning the federal Making Home Affordable program are operative and shall become inoperative on January 1, 2018 (instead of January 1, 2016) for all actions filed under the Article after December 31, 2016 (instead of December 31, 2015), in which the mortgagor did not apply for assistance under the Making Home Affordable Program on or before December 31, 2016 (instead of December 31, 2015). Provides that the changes apply to all cases pending and filed on or after the effective date.

What is the effect of this legislation? There is no effect as this is the current state of the law. This merely extends the requirement that is in the current statute set forth in 735 ILCS 5/15-1508 (d-5).

SB 2435: ABANDONED-IRREGULAR PARCELS

Synopsis As Introduced: Amends the Counties Code. Provides that a county may petition the circuit court to have property declared abandoned if the county’s petition specifies that the property is not being maintained as shown by the county having to abate a violation more than 3 times within a 12 month period. Provides that a county may transfer an irregular public parcel at no cost to adjoining property owners after receiving no bids after a public auction or no offers after adopting a resolution to sell the irregular public parcel. Defines “irregular public parcel”. Amends the Illinois Municipal Code to make similar changes.

What is the effect of this legislation? There are really two parts to this Bill. The first relates to the fact that a parcel of property can be considered abandoned if the County has had to abate a violation more than 3 times in a 12 month period. This then triggers the right of the County to take remedial action or to have the property demolished. The concern here is for mortgagees on the property to be aware that such action may be taken and to ensure that the property preservation department takes an active role in maintaining these properties.

The second part of this Bill deals with what are termed “irregular parcels”. The Bill sets up a format for disposing of parcels that “are of limited or narrow size or configurations; parcels of irregular size or shape that would be difficult to develop on a planned basis and in a manner compatible with contemporary standards and requirements; or platting that failed to create right-of-ways for streets, or alleys”. This would allow the municipality to try and sell the parcel and in the event a sale is not possible to deed the parcel to the contiguous landowner. There is no effect on mortgagees with this bill. This pertains only to property owned by a municipality so there is no negative action but only a positive one in that it is possible that a contiguous parcel may be deeded to a mortgagee.

SB 3162: COURT CLERK: E-BUSINESS $7 FEE

Synopsis As Introduced: Amends the Clerks of Courts Act. Provides that in specified circumstances, the clerk of the circuit court shall collect an additional $9 e-business fee. Provides that the clerk shall remit the fee to the State Treasurer within one month after receipt for deposit into the Supreme Court Special Purposes Fund. Provides that moneys in the Supreme Court Special Purposes Fund shall, among other things, be used by the Supreme Court for costs associated with electronic filing and other e-business programs and case management systems in the circuit courts.

What is the effect of this legislation? The simple answer is that it will add an additional $9.00 to each case that is filed on your behalf. The Illinois Supreme Court issued an Order requiring e-filing in all Illinois Counties by January 1, 2018. This is an attempt to allow the Circuit Courts to collect the monies necessary to implement the e-filing initiative.

SB 3166: EVICTION JUDGMENT-MORTGAGEES

Synopsis As Introduced: Amends the Forcible Entry and Detainer Article of the Code of Civil Procedure.   Changes a statutory notice of motion for the extension of an order of possession by replacing references to “landlord” with “plaintiff”.

What is the effect of this legislation? This Bill intends to make clear the nature of the party bringing a motion for an extension of the Order of Possession. The previous language referred to landlord and in the context of a foreclosure a mortgagee who purchases the property at a judicial sale is not technically a landlord. Thus this legislation seeks to remove the term landlord and replace it with the term plaintiff. This legislation is consumer in nature to avoid confusion between a landlord and a plaintiff who owns the property but is not a landlord in a traditional sense.

SB 3323:  STATE TAX LIEN REGISTRATION

Synopsis As Introduced:  Creates the Uniform State Tax Lien Registration Act. Provides that the Department of Revenue shall establish and maintain a public database known as the Uniform State Tax Lien Registry. Provides that, if any person neglects or refuses to pay any final tax liability, the Department of Revenue may file in the registry a notice of tax lien within 3 years from the date of the final tax liability. Provides that the tax lien is perfected upon inclusion in the registry and shall be attached to all of the existing and after-acquired property of the debtor. Provides that the Department of Revenue may impose filing fees and fees to release the lien.

What is the effect of this legislation? The present method for perfecting a lien owed to the Department of Revenue is to file the lien in the office of the Recorder of Deeds. This legislation eliminates the need for recording and instead replaces it with the Uniform State Tax Lien Registry. This will save time and effort for the State. This also means that any lender or its title company will now have to search an additional database to insure that there are no liens that will attach to the subject real estate.

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