Sen. Collins’ New "Abandoned Property Strategy" Becomes Law
Katharine Eastvold
Published: February 8, 2013
Illinois Senate Democratic Caucus, Department of Communications
State Senator Jacqueline Y. Collins
FOR IMMEDIATE RELEASE February 8, 2013
FOR FURTHER INFORMATION:
SPRINGFIELD, IL – State Senator Jacqueline Y. Collins (D-16th) thanked housing advocates, financial institutions and the Quinn administration for working together on a new strategy to address the glut of abandoned residential properties clogging the court system. The governor signed Senate Bill 16 today at a ceremony also attended by homeowners able to stay in their homes after receiving foreclosure counseling.
“Restoring stability to the housing market is critical to leading the broader economy out of recession. Our strategy grapples with the continuing foreclosure crisis on two levels: first, by clearing out the court logjam of foreclosures on truly abandoned properties; and second, by empowering communities to rehabilitate unsightly and dangerous vacant houses and lots,” said Collins, the measure’s sponsor. “It will also fund foreclosure counseling, a proven method of keeping people in their homes.”
This legislation creates a fast-track process for foreclosures when the property in question has been abandoned, shortening the total time from more than 500 days to approximately 100 days in such cases. It safeguards the rights of homeowners and legitimate occupants by establishing notification requirements and a strict definition of abandoned property. The law also increases the foreclosure filing fee. The proceeds will go to the Foreclosure Prevention Program Fund for homeowner counseling grants — funding counseling for an additional 18,000 households — and the Abandoned Residential Property Municipality Relief Fund, which will award a projected $28 million in grants to counties and municipalities to maintain, renovate or demolish abandoned properties.
“I am so glad I learned about homeowner counseling when I did,” said Mary Edmonds, a homeowner who obtained help from a foreclosure prevention grant recipient and spoke at the bill signing. “I had been in my home for 20 years when I lost my job and my mother became ill and passed away. With unemployment benefits running out, my only source of income was from a seasonal tax preparation job. By working with Neighborhood Housing Services, I was able to receive a reinstatement and monthly mortgage payment assistance.”
“Neither homeowners nor communities nor lenders benefit from a drawn-out foreclosure crisis that keeps the market sluggish and neighborhoods riddled with abandoned homes,” Collins said. “We know what works – counseling and community empowerment – and we’re emphasizing those tactics in our overall strategy.”
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