You have rights in foreclosure

"Illinois law recognizes the breach of an applicable HUD regulation as a defense in an action for foreclosure of a federally insured mortgage." 

Hayes v. M & T Mortg. Corp., 389 Ill. App. 3d 388, 391-392 (1st Dist. 2009)

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“‘Under the Truth in Lending Act, 82 Stat. 146, 15 U.S.C. § 1601 et seq., when a loan made in a consumer credit transaction is secured by the borrower's principal dwelling, the borrower may rescind the loan agreement if the lender fails to deliver certain forms or to disclose important terms accurately.’"

Wells Fargo Bank, N.A. v. Terry, 2010 Ill. App. LEXIS 251 (1st Dist. 2010)

April 9, 2009 New Illinois Foreclosure Law

 § 735 ILCS 5/15-1502.5.  Homeowner protection

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(b) Except in the circumstance in which a [homeowner] has filed a petition for relief under the United States Bankruptcy Code, no [lender] shall file a complaint to foreclose a mortgage secured by residential real estate until the requirements of this Section have been satisfied.

Illinois Foreclosure Defense

In general, failure by a borrower to meet the terms of their agreed-on loan does entitle the lender to foreclosure. Unexpected health or job changes and other kinds of hardship do not constitute defenses, and the courts are not authorized to impose a payment plan you can afford if the lender does not want to agree to it.  The courts are not unsympathetic, but the law permits foreclosure when you miss payments.  Even being in the Civil War is not a defense to paying mortgage interest.  As the Illinois Supreme Court put it in 1871, "What legal obstacle was there in the way of payment there?"  Yeaton v. Berney, 62 Ill. 61, 63 (1871).  The law has always favored lenders over borrowers.

But as a homeowner in Illinois in 2010, you are subject to a web of local, state, and federal laws.  Some of those laws restrict the practices of lenders in favor of homeowners.  Because of well-publicized abuses in residential lending, these laws have recently been expanded offering more means by which to challenge foreclosure.

We identify and advance homeowners' defenses and counterclaims in court.  We force lenders to prove every element of their foreclosure case.
Photo: Jeff Turner                           Even if the end result is still foreclosure, we ensure that the homeowner's 
                                                    best case was presented.  This may earn the homeowner and family additional months of occupancy.  This at least makes for a smoother transition to accommodate school terms, employment, medical recovery, etc.  Lender's foreclosure lawyers enjoy a process that favors quick and summary foreclosure judgment against you.  With your own legal counsel, you can gain some control over that process. 





Subpages (3): HUD Regulations Illinois Foreclosure Law Truth in Lending Act

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