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.

15-1510 Attorney's Fees and Costs


   Sec. 15-1510. Attorney's Fees and Costs. (a) The court may award reasonable attorney's fees and costs to the defendant who prevails in a motion, an affirmative defense or counterclaim, or in the foreclosure action. A defendant who exercises the defendant's right of reinstatement or redemption shall not be considered a prevailing party for purposes of this Section. Nothing in this subsection shall abrogate contractual terms in the mortgage or other written agreement between the mortgagor and the mortgagee or rights as otherwise provided in this Article which allow the mortgagee to recover attorney's fees and costs under subsection (b).

(b) Attorneys' fees and other costs incurred in connection with the preparation, filing or prosecution of the foreclosure suit shall be recoverable in a foreclosure only to the extent specifically set forth in the mortgage or other written agreement between the mortgagor and the mortgagee or as otherwise provided in this Article.