If you are in foreclosure, you should be aware that a new Illinois law requires mortgage lenders to provide homeowners with a notice of their legal rights and options when filing a foreclosure lawsuit. The Homeowner’s Rights Act (Public Act 095-0961) requires lenders to provide borrowers with a clear notice of their legal rights and options when they are served with a foreclosure suit. This notice must advise homeowners that they can sell their home, refinance or pay off the loan during the redemption period. It will also advise homeowners to call their mortgage company to discuss alternatives to foreclosure.
The law also requires lenders to provide borrowers with an accurate statement of the outstanding mortgage balance within 10 days of the borrower’s request. By telling homeowners exactly how much they must pay to avoid foreclosure, these payoff statements permit homeowners to quickly explore their options, such as refinancing the loan or selling their home to protect their equity.