"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
* * *
(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.
Sec. 15-1511. Deficiency. Except as expressly prohibited by this Article, foreclosure of a mortgage does not affect a mortgagee's rights, if any, to obtain a personal judgment against any person for a deficiency.