New Fees to Fund Foreclosure Counseling and Costs to Municipalities

It is widespread knowledge that foreclosures have become increasingly rampant. More and more homeowners are fighting to keep their homes. As various loan modification and loan assistance programs emerge, mortgage and foreclosure counseling is often a prerequisite to qualify. To defray the costs associated with counseling, the Illinois legislature recently passed a bill that requires the plaintiffs in all foreclosure suits to pay an additional $50 fee. The resulting funds collected will be applied for the benefit of counseling programs.

Some homeowners are unable to keep their homes no matter how hard they try. Once these homes are vacated, they often become targets of crime. Other times, they begin to look neglected and rundown. Water and sewer bills aren’t paid. More and more cities and towns in Illinois need funding to assist in the costs associated with foreclosed and vacated homes. The legislature recently enacted a law requiring the purchaser of residential property to pay a tax of $1 for every thousand dollars (or fraction thereof), if the property is bought at a judicial sale. Mortgagees, judgment creditors, and other lienholders are exempted from this tax. The funds collected as a result of this tax will be passed on to municipalities.