As foreclosure rates surge, Illinois lenders must meticulously adhere to the state's complex web of notice and registration requirements for properties undergoing foreclosure proceedings. Section 15-1503 of the Illinois Mortgage Foreclosure Law (IMFL) mandates recording a foreclosure notice in the county where the property resides as constructive notice of the ongoing foreclosure action. Effective June 2023, recent legislative changes eliminated certain notice obligations for residential real estate under Section 15-1503(b).
Despite the amendment, numerous municipalities across Illinois enforce their ordinances for foreclosed properties, often stemming from a desire to combat blight. These local rules necessitate lenders to register and regularly inspect such properties, with fines for noncompliance. The City of Aurora exemplifies this by requiring registration within 14 days of initiating foreclosure, certifying property inspection status, and maintaining semi-annual registrations throughout the foreclosure process.
Similarly, the City of Rockford demands property inspections within 30 days of foreclosure initiation, subsequent registrations, and adherence to deadlines, facilitated by the third-party registration service PROCHAMPS. The decentralized nature of these municipal requirements poses a challenge for lenders, prompting a need for vigilant compliance with varying local regulations to navigate the foreclosure landscape effectively.
