IL HB5759

Establishes mandatory foreclosure mediation for residential real estate mortgages before foreclosure complaints can be filed, requiring participation by mortgagor, mortgagee, servicer, court-appointed mediator, and approved housing counselor.

Allows mortgagors delinquent more than 45 days to petition for mediation, and requires mortgagees to file a mediation notice when a mortgage is delinquent more than 60 days and foreclosure is intended (except in bankruptcy cases).

Freezes mortgagor's account and suspends all payment obligations and fees from the filing of a mediation petition or notice until a final mortgage modification plan is reached or mediator's written report is filed with the court.

Creates the Mandatory Foreclosure Mediation Fund through a $100 filing fee on residential foreclosure complaints; establishes fines of $25 per day if mediation is not concluded within 90 days, with 98% of collected fees and fines going to the Fund and 2% to court administrative expenses.

Requires court-appointed mediators (licensed Illinois attorneys with mediation or real estate/banking law experience) and approved housing counselors; limits mediation procedures to one occurrence per mortgage and applies only to owner-occupied residential properties.