IL SB3739

Establishes Foreclosure Prevention Program requiring mortgagees to send notice to delinquent borrowers and provide 30-day grace period before filing foreclosure complaint, extendable to 60 days if borrower obtains approved housing counseling.

Creates Foreclosure Prevention Program Fund supported by $50 filing fee on residential foreclosure complaints, with funds distributed to approved counseling agencies (25% outside Chicago, 25% to Chicago) and community-based organizations (25% outside Chicago, 25% to Chicago).

Establishes Abandoned Residential Property Municipality Relief Program and fund supported by $1 per $1,000 (maximum $300) fee on residential property judicial sales, with 75% distributed to municipalities outside Chicago and 25% to Chicago for removal and securing costs.

Allows municipalities to file liens superior to all liens except tax liens for costs incurred removing, securing, or enclosing abandoned residential properties, enforceable only at foreclosure sale confirmation hearing and subject to mortgagee challenge.

Defines "abandoned residential property" as any residential dwelling unoccupied for 90 days or more where municipality made good faith efforts to contact legal owner, excluding properties in active foreclosure proceedings.