Bill Text: IL HR0045 | 2011-2012 | 97th General Assembly | Introduced
Bill Title: Urges Congress to help prevent residential foreclosures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-04-12 - Resolution Adopted [HR0045 Detail]
Download: Illinois-2011-HR0045-Introduced.html
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1 | HOUSE RESOLUTION
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2 | WHEREAS, The United States continues to experience an | ||||||
3 | unprecedented number of mortgage foreclosures and these, in | ||||||
4 | turn, have contributed to a real estate market that has | ||||||
5 | declined in a precipitous fashion; and
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6 | WHEREAS, When a residential mortgagor defaults on his or | ||||||
7 | her mortgage, it is common for the lending institution involved | ||||||
8 | to obtain the property back from the mortgagor by way of | ||||||
9 | receiving a deed in lieu of foreclosure or by foreclosing and | ||||||
10 | then purchasing the property at a foreclosure judicial sale; | ||||||
11 | and
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12 | WHEREAS, In recent years, it is not unusual for a lending | ||||||
13 | institution to have a large inventory of foreclosed properties | ||||||
14 | and this has often led to a lending institution repeatedly | ||||||
15 | resorting to selling a foreclosed property at a "short sale" | ||||||
16 | price, which means that the sale price for the individual home | ||||||
17 | is significantly less than the mortgagor's purchase price or | ||||||
18 | even the amount of the mortgagor's outstanding loan at the time | ||||||
19 | of the foreclosure; and
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20 | WHEREAS, The credit rating of a person whose home has been | ||||||
21 | foreclosed is often very low and this means that even if the | ||||||
22 | person could afford a more modestly priced property than the |
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1 | foreclosed home, the former homeowner is unable to qualify for | ||||||
2 | a loan under today's standards; and
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3 | WHEREAS, If a lending institution that expects to sell a | ||||||
4 | foreclosed residential property at a "short sale" price were | ||||||
5 | compelled to offer to the mortgagor modifications in the terms | ||||||
6 | of the mortgagor's home mortgage loan, the mortgagor would, in | ||||||
7 | many cases, be able to afford the home under the modified loan | ||||||
8 | terms and remain in his or her home; in that case, the lending | ||||||
9 | institution would avoid adding to its foreclosed properties | ||||||
10 | inventory, the residential mortgagor might be able to remain in | ||||||
11 | his or her home, the real estate market would be improved | ||||||
12 | because fewer "short sale" properties would be depressing home | ||||||
13 | prices on the market, neighborhood blight and crime would be | ||||||
14 | reduced due to the decline in empty and vandalized homes, and | ||||||
15 | all of these circumstances would tend to stem the tide of | ||||||
16 | neighborhood deterioration that is due to the large number of | ||||||
17 | foreclosures and vacancies; therefore, be it
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18 | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | ||||||
19 | NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that | ||||||
20 | we urge Congress to pass legislation that would compel any | ||||||
21 | lending institution, before foreclosing on a residential | ||||||
22 | property occupied by a mortgagor, to provide the mortgagor with | ||||||
23 | modifications to the home loan that are reasonable for the | ||||||
24 | mortgagor and that include, but are not limited to, an interest |
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1 | rate reduction, a term extension, or other changes to the | ||||||
2 | elements of the home loan, provided that the homeowner is | ||||||
3 | interested in remaining in the home and qualified for the | ||||||
4 | modified loan terms; and be it further
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5 | RESOLVED, That suitable copies of this resolution be | ||||||
6 | presented to President Barack Obama, the Speaker of the United | ||||||
7 | States House of Representatives, the President pro tempore of | ||||||
8 | the United States Senate, and each member of the Illinois | ||||||
9 | congressional delegation.
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