SB1728 Summary

• Extends homeowner protection provisions in foreclosure cases by delaying repeal of Section 15-1502.5 from July 1, 2013 to January 1, 2014, and creates new comprehensive Section 15-1502.6 effective January 1, 2014.

• Requires mortgagees to provide 30-day grace period notice before foreclosure and prohibits filing foreclosure complaints until mortgagors receive notice and opportunity to seek approved housing counseling and negotiate sustainable loan workout plans.

• Establishes detailed foreclosure prevention alternative procedures including: written acknowledgment of applications within 5 business days, 30-day decision deadline on modifications, prohibition on fees and late charges during consideration, and right to appeal denials with 30-day appeal period.

• Mandates single point of contact for mortgagors requesting loss mitigation options, with responsibility to provide application process information, coordinate documents, update status, and ensure consideration of all available foreclosure prevention alternatives.

• Adds private right of action for violations allowing mortgagors to defend or counterclaim in foreclosure actions, with actual economic damages recoverable and treble damages up to $50,000 for intentional or reckless violations; amends property recording provisions to include assignments, releases, modifications, liens, and lis pendens.