IL SB2894

Amends the Code of Civil Procedure to define "short sale" as the sale of real estate subject to a mortgage for less than the amount owed on the mortgage note.

Defines "residential property" as real property with a dwelling unit for 4 or fewer households occupied or to be occupied by the mortgagor, limited to principal residence and excluding investment properties and properties used as collateral for commercial loans.

Requires mortgagees to respond within 90 days to a mortgagor's written request to approve a short sale offer from a third party, though failure to accept does not impair the mortgagee's rights or stay foreclosure proceedings.

Prohibits mortgagees from requiring affidavits, statements, agreements, or addendums limiting ownership or occupancy as a condition of sale to tax-exempt 501(c)(3) entities or entities controlled by such entities, and makes any such documents unenforceable.

Takes effect immediately upon becoming law.