Proposed Real Estate Related Legislation in Illinois – 2017

Some new bills have been proposed in the state legislature this year. It remains to be seen whether they will pass, but if they do, they will tweak existing laws and regulations affecting real estate in various ways. Here’s a quick summary of some of the proposed legislation:

  1. Of course, foreclosures are on everyone’s mind, at least for the last 8-10 years. One of the proposed laws takes some of the burden off of the bank. Specifically, the proposed legislation would create a prima facie case of foreclosure if the bank can admit the following two items into evidence: the mortgage and the note. That’s really all the bank would need. After that, the burden would shift to the mortgagor to contradict the prima facie case of foreclosure. The mortgagor would have to prove the amount still outstanding on the note and also make any affirmative defenses. The bank will have the opportunity to rebut. If the mortgagor does not provide evidence of what he or she owes, then the bank may submit an affidavit stating what is owed. (Senate Bill 192)
  2. Another bill favors tenants. Specifically, House Bill 471 proposes that if a landlord is served with a notice of foreclosure, and then leases his real estate to a tenant, who is subsequently required to vacate the real estate because of the foreclosure, then the tenant may recover all – that’s right, all – of the rent he paid the landlord from the time the lease was signed to the time he had to vacate. I’m not sure how practical this would be – presumably the landlord didn’t have money to pay the mortgage and therefore may not have the money to pay the tenant back either. (House Bill 471)
  3. And then there’s a bill that’s pro-landlord. Senate Bill 758 proposes that constructive service of the demand be allowed if the landlord is unable to personally serve the demand on the tenant. This would make it easier to evict tenants. (Senate Bill 758)
  4. House Bill 367 makes it easier for some buyers to get mortgages. Specifically, if approved, it would create a new act, the Value After Rehabilitation Appraisal Act. Under this new act, if any state-administered program requires a real estate appraisal, and the subject property requires rehab work, then the appraiser must take into account what the value of the property would be after it is rehabbed. That appraisal must be accepted in the same manner as other appraisals would be. (House Bill 367)

These bills are relatively new. Let’s see if they make it through the legislature and become law!