The Illinois Supreme Court has issued new rules that impose requirements on mediation programs and the foreclosure process in general. The new rules require judicial circuits electing to establish mortgage foreclosure mediation programs to adopt local rules that address such issues as actions eligible for referral to mediation and scheduling of the mediation. In addition, the rules amend the Illinois Mortgage Foreclosure Law, which, among other things, imposes content requirements for the foreclosure complaint and requires that certain documents be filed with the complaint. For example, under the new rules, a copy of the note including all indorsements and allonges must be attached to the mortgage foreclosure complaint at the time of filing. Finally, the new rules impose notice requirements for default judgments and foreclosure sales (e.g., notice of the foreclosure sale must be sent at least 10 days before the sale) and require compliance with all loss mitigation programs that apply to a loan prior to moving for a judgment of foreclosure in cases where the mortgagor appears or files a responsive pleading. Such compliance must be documented with an affidavit, in the form prescribed by rule, setting forth the type of loss mitigation that applied to the loan, the steps that were taken to offer the loss mitigation and the status of any loss mitigation efforts. The rules were effective March 1, 2013.
Alert March 05, 2013