Will Illinois allow banks to control the foreclosure process?
July 27th, 2010- Streamlining the process seemed like a good idea
- But Counties lose income, and families their right of access to the Courts
Counties in the immediate area surrounding Chicago are faced with millions of dollars lost from foreclosure proceedings, adding further woes to local treasuries already struggling with reduced income from property taxes. This latest threat to their municipal budgets is in the hands of the Governor of Illinois himself.
Why do I say this? Because the pen in Pat Quinn’s hand is poised to sign a Bill that will allow banks to close-out on foreclosures using private mediators, and thereby avoiding going to Court and feeding County coffers. Following near unanimous support in the Illinois Legislature, more than a few representatives are having second thoughts on what at first seemed so logical. “I’m in favor of the governor vetoing this or at least letting us go back and change it in such a way that it doesn’t hurt counties,” State Representative Dan Brady told me. “I don’t think many of us realized what the unintended consequences of this might be.”
State Senator Wilhelmi agrees. He co-sponsored the Bill, but now wants to meet with the Governor to discuss the risks and potential consequences for Counties. The Governor’s office has responded with assurances that it is reviewing matters, and will be in touch with the Bill’s sponsors shortly.
Throughout this latest twist in America’s foreclosure debacle one thing is abundantly clear. Somebody influenced State legislators to approve a bill whose consequences sponsors apparently did not know. How is that for joined-up government? How much money is involved? Will County had hoped to rake in $2.5 million this year. In 2009, both Du Page and Lake Counties, and Kane County pulled $1,2 million and $ 1 million respectively. Small change? Not really, given the pressure already on the Courts to cope with extra work.
A further negative impact of the Bill is that it will deprive bruised American families of the right to have a Judge oversee their foreclosure proceeding, and an impartial official to explain their options. Those who understand these things are concerned that this will introduce dispassionate undertakers to the type of funeral where they do not belong.
The beneficiaries, needless to say, will be the banks – once again. They will not only avoid paying County Court fees, but also be even more in control of a process where they welcome no intruders. Their supporters in the Legislature are at pains to point out that the Bill will not only simplify the process, but also get repossessions to the auction rooms quicker too. This in turn, they say as if to complete their point, will mean less abandoned homes in limbo, and tidier neighborhoods as well.
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