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1 | AN ACT concerning mortgages.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||||
5 | Mortgage Rescue Fraud Act. | ||||||||||||||||||||||||||
6 | Section 5. Definitions. As used in this Act: | ||||||||||||||||||||||||||
7 | "Distressed property" means residential real property | ||||||||||||||||||||||||||
8 | consisting of one to 6 family dwelling units that is in | ||||||||||||||||||||||||||
9 | foreclosure or at risk of loss due to nonpayment of taxes, or | ||||||||||||||||||||||||||
10 | whose owner is more than 90 days delinquent on any loan that is | ||||||||||||||||||||||||||
11 | secured by the property. | ||||||||||||||||||||||||||
12 | "Distressed property consultant" means any person who, | ||||||||||||||||||||||||||
13 | directly or indirectly, makes any solicitation, | ||||||||||||||||||||||||||
14 | representation, or offer to any owner to perform for | ||||||||||||||||||||||||||
15 | compensation or who, for compensation, performs any service | ||||||||||||||||||||||||||
16 | that the person in any manner represents will in any manner do | ||||||||||||||||||||||||||
17 | any of the following: | ||||||||||||||||||||||||||
18 | (1) stop or postpone the foreclosure sale or the loss | ||||||||||||||||||||||||||
19 | of the home due to nonpayment of taxes; | ||||||||||||||||||||||||||
20 | (2) obtain any forbearance from any beneficiary or | ||||||||||||||||||||||||||
21 | mortgagee, or relief with respect to a tax sale of the | ||||||||||||||||||||||||||
22 | property; | ||||||||||||||||||||||||||
23 | (3) assist the owner to exercise any right of | ||||||||||||||||||||||||||
24 | reinstatement or right of redemption; | ||||||||||||||||||||||||||
25 | (4) obtain any extension of the period within which the | ||||||||||||||||||||||||||
26 | owner may reinstate the owner's rights with respect to the | ||||||||||||||||||||||||||
27 | property; | ||||||||||||||||||||||||||
28 | (5) obtain any waiver of an acceleration clause | ||||||||||||||||||||||||||
29 | contained in any promissory note or contract secured by a | ||||||||||||||||||||||||||
30 | mortgage on a distressed property or contained in the | ||||||||||||||||||||||||||
31 | mortgage; | ||||||||||||||||||||||||||
32 | (6) assist the owner in foreclosure, loan default, or |
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1 | post-tax sale redemption period to obtain a loan or advance | ||||||
2 | of funds; | ||||||
3 | (7) avoid or ameliorate the impairment of the owner's | ||||||
4 | credit resulting from the recording of a notice of default | ||||||
5 | or the conduct of a foreclosure sale or tax sale; or | ||||||
6 | (8) save the owner's residence from foreclosure or loss | ||||||
7 | of home due to nonpayment of taxes. | ||||||
8 | A "distressed property consultant" does not include any of | ||||||
9 | the following: | ||||||
10 | (1) a person or the person's authorized agent acting | ||||||
11 | under the express authority or written approval of the | ||||||
12 | Department of Housing and Urban Development or other | ||||||
13 | department or agency of the United States or this State to | ||||||
14 | provide services; | ||||||
15 | (2) a person who holds or is owed an obligation secured | ||||||
16 | by a lien on any distressed property when the person | ||||||
17 | performs services in connection with the obligation or | ||||||
18 | lien, if the obligation or lien did not arise as the result | ||||||
19 | of or as part of a proposed distressed property | ||||||
20 | reconveyance; | ||||||
21 | (3) banks, savings banks, savings and loan | ||||||
22 | associations, credit unions, and insurance companies | ||||||
23 | organized, chartered, or holding a certificate of | ||||||
24 | authority to do business under the laws of this State or | ||||||
25 | any other state or under the laws of the United States; | ||||||
26 | (4) licensed attorneys engaged in the practice of law; | ||||||
27 | (5) a Department of Housing and Urban Development | ||||||
28 | approved mortgagee and any subsidiary or affiliate of these | ||||||
29 | persons or entities, and any agent or employee of these | ||||||
30 | persons or entities, while engaged in the business of these | ||||||
31 | persons or entities; or | ||||||
32 | (6) a 501(c)(3) nonprofit agency or organization, | ||||||
33 | doing business for no less than 5 years, that offers | ||||||
34 | counseling or advice to an owner of a home in foreclosure | ||||||
35 | or loan default, if they do not contract for services with | ||||||
36 | for-profit lenders or distressed property purchasers. |
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1 | "Distressed property purchaser" means any person who | ||||||
2 | acquires any interest in a distressed property while allowing | ||||||
3 | the owner to possess, occupy, or retain any present or future | ||||||
4 | interest in the property. | ||||||
5 | "Distressed property reconveyance" means a transaction in | ||||||
6 | which an owner of a distressed property transfers an interest | ||||||
7 | in the distressed property; the acquirer of the property allows | ||||||
8 | the owner of the distressed property to occupy the property; | ||||||
9 | and the acquirer of the property or a person acting in | ||||||
10 | participation with the acquirer of the property conveys or | ||||||
11 | promises to convey an interest back to the owner or gives the | ||||||
12 | owner an option to purchase the property at a later date. | ||||||
13 | "Person" means any individual, partnership, corporation, | ||||||
14 | limited liability company, association, or other group or | ||||||
15 | entity, however organized. | ||||||
16 | "Service" means, without limitation, any of the following: | ||||||
17 | (1) debt, budget, or financial counseling of any type; | ||||||
18 | (2) receiving money for the purpose of distributing it | ||||||
19 | to creditors in payment or partial payment of any | ||||||
20 | obligation secured by a lien on a distressed property; | ||||||
21 | (3) contacting creditors on behalf of an owner of a | ||||||
22 | residence that is distressed property; | ||||||
23 | (4) arranging or attempting to arrange for an extension | ||||||
24 | of the period within which the owner of a distressed | ||||||
25 | property may cure the owner's default and reinstate his or | ||||||
26 | her obligation;
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27 | (5) arranging or attempting to arrange for any delay or | ||||||
28 | postponement of the time of sale of the residence in | ||||||
29 | foreclosure; | ||||||
30 | (6) advising the filing of any document or assisting in | ||||||
31 | any manner in the preparation of any document for filing | ||||||
32 | with any court; or | ||||||
33 | (7) giving any advice, explanation, or instruction to | ||||||
34 | an owner of a distressed property that in any manner | ||||||
35 | relates to the cure of a default or forfeiture or to the | ||||||
36 | postponement or avoidance of sale of the distressed |
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1 | property.
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2 | Section 10. Distressed property consultant contract terms.
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3 | (a) A distressed property consultant contract must be in | ||||||
4 | writing and must fully disclose the exact nature of the | ||||||
5 | distressed property consultant's services and the total amount | ||||||
6 | and terms of compensation. | ||||||
7 | (b) The following notice, printed in at least 12-point | ||||||
8 | boldface type and completed with the name of the distressed | ||||||
9 | property consultant, must be printed immediately above the | ||||||
10 | statement required by subsection (c) of this Section: | ||||||
11 | "NOTICE REQUIRED BY ILLINOIS LAW | ||||||
12 | ...............................(name) or anyone working | ||||||
13 | for him or her CANNOT: | ||||||
14 | (1) Take any money from you or ask you for money until | ||||||
15 | ........................................ (Name) has | ||||||
16 | completely finished doing everything he or she said he or | ||||||
17 | she would do; or
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18 | (2) Ask you to sign or have you sign any lien, | ||||||
19 | mortgage, or deed." | ||||||
20 | (c) A distressed property consultant contract must be | ||||||
21 | written in the same language as principally used by the | ||||||
22 | distressed property consultant to describe his or her services | ||||||
23 | or to negotiate the contract, must be dated and signed by the | ||||||
24 | owner, and must contain in immediate proximity to the space | ||||||
25 | reserved for the owner's signature a conspicuous statement in a | ||||||
26 | size equal to at least 12-point boldface type, as follows: | ||||||
27 | "You, the owner, may cancel this transaction at any | ||||||
28 | time until after the distressed property consultant has | ||||||
29 | fully performed each and every service the distressed | ||||||
30 | property consultant contracted to perform or represented | ||||||
31 | he or she would perform. See the attached notice of | ||||||
32 | cancellation form for an explanation of this right." | ||||||
33 | (d) A distressed property contract must contain on the | ||||||
34 | first page, in a type size no smaller than that generally used | ||||||
35 | in the body of the document, each of the following: |
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1 | (1) the name and address of the distressed property | ||||||
2 | consultant to which the notice of cancellation is to be | ||||||
3 | mailed; and | ||||||
4 | (2) the date the owner signed the contract. | ||||||
5 | (e) A distressed property consultant contract must be | ||||||
6 | accompanied by a completed form in duplicate, captioned "NOTICE | ||||||
7 | OF CANCELLATION," which must be attached to the contract, must | ||||||
8 | be easily detachable, and must contain, in at least 12-point | ||||||
9 | boldface type, the following statement written in the same | ||||||
10 | language as used in the contract: | ||||||
11 | "NOTICE OF CANCELLATION | ||||||
12 | ............................ | ||||||
13 | (Enter date of transaction) | ||||||
14 |
You may cancel this transaction, without any penalty or | ||||||
15 | obligation, at any time until after the distressed property | ||||||
16 | consultant has fully performed each and every service the | ||||||
17 | distressed property consultant contracted to perform or | ||||||
18 | represented he or she would perform. | ||||||
19 | To cancel this transaction, mail or deliver a signed and | ||||||
20 | dated copy of this cancellation notice, or any other written | ||||||
21 | notice to: | ||||||
22 | ..................(Name of distressed property consultant) at | ||||||
23 | ...........................(Address of distressed property | ||||||
24 | consultant's place of business) | ||||||
25 | I hereby cancel this transaction on ...............(Date) | ||||||
26 | .....................................(Owner's signature)". | ||||||
27 | (f) The distressed property consultant shall provide the | ||||||
28 | owner with a copy of a distressed property consultant contract | ||||||
29 | and the attached notice of cancellation immediately upon | ||||||
30 | execution of the contract.
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31 | Section 15. Rescission of distressed property consultant | ||||||
32 | contract.
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33 | (a) In addition to any other legal right to rescind a | ||||||
34 | contract, an owner has the right to cancel a distressed | ||||||
35 | property consultant contract at any time until after the |
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1 | distressed property consultant has fully performed each | ||||||
2 | service the distressed property consultant contracted to | ||||||
3 | perform or represented he or she would perform. | ||||||
4 | (b) Cancellation occurs when the owner gives written notice | ||||||
5 | of cancellation to the distressed property consultant at the | ||||||
6 | address specified in the distressed property consultant | ||||||
7 | contract. | ||||||
8 | (c) Notice of cancellation, if given by mail, is effective | ||||||
9 | when deposited in the mail properly addressed with postage | ||||||
10 | prepaid. Notice by certified mail, return receipt requested, | ||||||
11 | addressed to the address specified in the distressed property | ||||||
12 | consultant contract, shall be conclusive proof of notice of | ||||||
13 | service. | ||||||
14 | (d) Notice of cancellation given by the owner need not take | ||||||
15 | the particular form as provided with the distressed property | ||||||
16 | consultant contract and, however expressed, is effective if it | ||||||
17 | indicates the intention of the owner not to be bound by the | ||||||
18 | contract.
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19 | Section 20. Waiver of a distressed property consultant | ||||||
20 | contract.
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21 | (a) Any waiver by an owner of the provisions of Section 10 | ||||||
22 | or 15 is void and unenforceable as contrary to public policy. | ||||||
23 | (b) Any attempt by a distressed property consultant to | ||||||
24 | induce an owner to waive the owner's rights is a violation of | ||||||
25 | the Act.
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26 | Section 25. Distressed property reconveyance contract. A | ||||||
27 | distressed property purchaser shall enter into every | ||||||
28 | distressed property reconveyance in the form of a written | ||||||
29 | contract. Every distressed property reconveyance contract must | ||||||
30 | be written in letters of a size equal to at least 12-point | ||||||
31 | boldface type, in the same language principally used by the | ||||||
32 | distressed property purchaser and owner of the distressed | ||||||
33 | property to negotiate the sale of the distressed property, must | ||||||
34 | be fully completed, signed, and dated by the owner of the |
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1 | distressed property and the distressed property purchaser, and | ||||||
2 | must be witnessed and acknowledged by a real estate notary | ||||||
3 | public, before the execution of any instrument of conveyance of | ||||||
4 | the distressed property. | ||||||
5 | Section 30. Distressed property reconveyance contract | ||||||
6 | terms. Every contract required by Section 25 must contain the | ||||||
7 | entire agreement of the parties, be fully assignable, and | ||||||
8 | survive delivery of any instrument of conveyance of the | ||||||
9 | distressed property. Every lease entered into pursuant to a | ||||||
10 | contract required by Section 25 is terminable at will by the | ||||||
11 | distressed property owner, without liability. Every contract | ||||||
12 | required by Section 25 must include the following terms: | ||||||
13 | (1) the name, business address, and the telephone | ||||||
14 | number of the distressed property purchaser; | ||||||
15 | (2) the address of the distressed property; | ||||||
16 | (3) the total consideration to be given by the | ||||||
17 | foreclosure purchaser in connection with or incident to the | ||||||
18 | sale; | ||||||
19 | (4) a complete description of the terms of payment or | ||||||
20 | other consideration including, but not limited to, any | ||||||
21 | services of any nature that the distressed property | ||||||
22 | purchaser represents he or she will perform for the owner | ||||||
23 | of the distressed property before or after the sale; | ||||||
24 | (5) a complete description of the terms of any related | ||||||
25 | agreement designed to allow the owner of the distressed | ||||||
26 | property to remain in the home such as a rental agreement, | ||||||
27 | repurchase agreement, contract for deed, or lease with | ||||||
28 | option to buy; | ||||||
29 | (6) a notice of cancellation as provided in this | ||||||
30 | Section; and | ||||||
31 | (7) the following notice in at least 12-point boldface | ||||||
32 | type, if the contract is printed, or in capital letters, if | ||||||
33 | the contract is typed, and completed with the name of the | ||||||
34 | distressed property purchaser, immediately above the | ||||||
35 | statement required by this Section: |
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1 | "NOTICE REQUIRED BY ILLINOIS LAW | ||||||
2 | Until your right to cancel this contract has ended, | ||||||
3 | ..................(Name) or anyone working for | ||||||
4 | ...................(Name) CANNOT ask you to sign or have | ||||||
5 | you sign any deed or any other document. You are urged to | ||||||
6 | have this contract reviewed by an attorney of your choice | ||||||
7 | within 5 business days of signing it."
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8 | Section 35. Cancellation of a distressed property | ||||||
9 | reconveyance contract.
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10 | (a) In addition to any other right of rescission, the owner | ||||||
11 | of the distressed property has the right to cancel any contract | ||||||
12 | with a distressed property purchaser until midnight of the | ||||||
13 | fifth business day following the day on which the owner of the | ||||||
14 | distressed property signs a contract that complies with | ||||||
15 | Sections 25 and 30 or until 8:00 a.m. on the last day of the | ||||||
16 | period during which the owner of the distressed property has a | ||||||
17 | right of redemption, whichever occurs first. | ||||||
18 | (b) Cancellation occurs when the owner of the distressed | ||||||
19 | property delivers, by any means, written notice of cancellation | ||||||
20 | to the address specified in the distressed property | ||||||
21 | reconveyance contract. | ||||||
22 | (c) A notice of cancellation given by the owner of the | ||||||
23 | distressed property need not take the particular form as | ||||||
24 | provided with the distressed property reconveyance contract. | ||||||
25 | (d) Within 10 days following receipt of a notice of | ||||||
26 | cancellation given in accordance with this Section, the | ||||||
27 | distressed property purchaser shall return, without condition, | ||||||
28 | any original contract and any other documents signed by the | ||||||
29 | owner of the distressed property.
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30 | Section 40. Notice of cancellation of a distressed property | ||||||
31 | reconveyance contract.
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32 | (a) The contract must contain in immediate proximity to the | ||||||
33 | space reserved for the owner of the distressed property's | ||||||
34 | signature a conspicuous statement in a size equal to at least |
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1 | 12-point boldface type, if the contract is printed, or in | ||||||
2 | capital letters, if the contract is typed, as follows: | ||||||
3 | "You may cancel this contract for the sale of your | ||||||
4 | house, without any penalty or obligation, at any time | ||||||
5 | before ................................(Date and time of | ||||||
6 | day).
See the attached notice of cancellation form for an | ||||||
7 | explanation of this right." | ||||||
8 | The distressed property purchaser shall accurately | ||||||
9 | enter the date and time of day on which the cancellation | ||||||
10 | right ends. | ||||||
11 | (b) The contract must be accompanied by a completed form in | ||||||
12 | duplicate, captioned "NOTICE OF CANCELLATION" in a size equal | ||||||
13 | to a 12-point boldface type, if the contract is printed, or in | ||||||
14 | capital letters, if the contract is typed, followed by a space | ||||||
15 | in which the distressed property purchaser shall enter the date | ||||||
16 | on which the owner of the distressed property executes any | ||||||
17 | contract. This form must be attached to the contract, must be | ||||||
18 | easily detachable, and must contain in type of at least 12 | ||||||
19 | points, if the contract is printed, or in capital letters, if | ||||||
20 | the contract is typed, the following statement written in the | ||||||
21 | same language as used in the contract:
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22 | "NOTICE OF CANCELLATION
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23 | ...........................
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24 | (Enter date contract signed) | ||||||
25 | You may cancel this contract for the sale of your home, | ||||||
26 | without any penalty or obligation, at any time before | ||||||
27 | ....................(enter date and time of day).
To | ||||||
28 | cancel this transaction, mail or deliver a signed and dated | ||||||
29 | copy of this cancellation notice to | ||||||
30 | .......................(Name of purchaser) at | ||||||
31 | .............................................. (Street | ||||||
32 | address of purchaser's place of business) NOT LATER THAN | ||||||
33 | ................................ (Enter date and time of | ||||||
34 | day). | ||||||
35 |
I hereby cancel this transaction on ............... (Date) | ||||||
36 | ............................................... (Seller's |
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1 | signature)". | ||||||
2 | (c) The distressed property purchaser shall provide the | ||||||
3 | owner of the distressed property with a copy of the contract | ||||||
4 | and the attached notice of cancellation immediately at the time | ||||||
5 | the contract is executed by all parties. | ||||||
6 | (d) The distressed property purchaser shall record the | ||||||
7 | contract with the recorder of deeds in the county where the | ||||||
8 | distressed property is located within 10 days of its execution, | ||||||
9 | provided the contract has not been canceled. | ||||||
10 | (e) The 5 business days during which the owner of the | ||||||
11 | distressed property may cancel the contract shall not begin to | ||||||
12 | run until all parties to the contract have executed the | ||||||
13 | contract and the distressed property purchaser has complied | ||||||
14 | with all the requirements of this Section.
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15 | Section 45. Waiver of a distressed property reconveyance | ||||||
16 | contract. Any waiver of the provisions of Sections 35 and 40 | ||||||
17 | are void and unenforceable as contrary to public policy, except | ||||||
18 | that a consumer may waive the 5-day right to cancel provided in | ||||||
19 | Section 35 if the property is subject to a foreclosure sale | ||||||
20 | within the 5 business days and the owner of the distressed | ||||||
21 | property agrees to waive his or her right to cancel in a | ||||||
22 | handwritten statement that is signed by all parties holding | ||||||
23 | title to the distressed property. | ||||||
24 | Section 50. Violations.
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25 | (a) It is a violation for a distressed property consultant | ||||||
26 | to:
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27 | (1) claim, demand, charge, collect, or receive any | ||||||
28 | compensation until after the distressed property | ||||||
29 | consultant has fully performed each service the distressed | ||||||
30 | property consultant contracted to perform or represented | ||||||
31 | he or she would perform; | ||||||
32 | (2) claim, demand, charge, collect, or receive any fee, | ||||||
33 | interest, or any other compensation for any reason that | ||||||
34 | exceeds 2 monthly mortgage payments of principal and |
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1 | interest or the most recent tax installment on the | ||||||
2 | distressed property, whichever is less; | ||||||
3 | (3) take a wage assignment, a lien of any type on real | ||||||
4 | or personal property, or other security to secure the | ||||||
5 | payment of compensation. Any such security is void and | ||||||
6 | unenforceable; | ||||||
7 | (4) receive any consideration from any third party in | ||||||
8 | connection with services rendered to an owner unless the | ||||||
9 | consideration is first fully disclosed to the owner; | ||||||
10 | (5) acquire any interest, directly or indirectly, or by | ||||||
11 | means of a subsidiary or affiliate in a distressed property | ||||||
12 | from an owner with whom the distressed property consultant | ||||||
13 | has contracted; | ||||||
14 | (6) take any power of attorney from an owner for any | ||||||
15 | purpose, except to inspect documents as provided by law; or
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16 | (7) induce or attempt to induce an owner to enter a | ||||||
17 | contract that does not comply in all respects with Sections | ||||||
18 | 10 and 15 of this Act. | ||||||
19 |
(b) A distressed property purchaser shall not: | ||||||
20 | (1) enter into, or attempt to enter into, a distressed | ||||||
21 | property reconveyance unless the distressed property | ||||||
22 | purchaser verifies and can demonstrate that the owner of | ||||||
23 | the distressed property has a reasonable ability to pay for | ||||||
24 | the subsequent conveyance of an interest back to the owner | ||||||
25 | of the distressed property; | ||||||
26 | (2) fail to make a payment to the owner of the | ||||||
27 | distressed property at the time the title is conveyed so | ||||||
28 | that the owner of the distressed property has received | ||||||
29 | consideration in an amount of at least 82% of the fair | ||||||
30 | market value of the property; | ||||||
31 | (3) enter into repurchase or lease terms as part of the | ||||||
32 | subsequent conveyance that are unfair or commercially | ||||||
33 | unreasonable, or engage in any other unfair conduct; | ||||||
34 | (4) represent, directly or indirectly, that the | ||||||
35 | distressed property purchaser is acting as an advisor or a | ||||||
36 | consultant, or in any other manner represent that the |
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1 | distressed property purchaser is acting on behalf of the | ||||||
2 | homeowner, or the distressed property purchaser is | ||||||
3 | assisting the owner of the distressed property to "save the | ||||||
4 | house", "buy time", or do anything couched in substantially | ||||||
5 | similar language; | ||||||
6 | (5) misrepresent the distressed property purchaser's | ||||||
7 | status as to licensure or certification; | ||||||
8 | (6) do any of the following until after the time during | ||||||
9 | which the owner of a distressed property may cancel the | ||||||
10 | transaction: | ||||||
11 | (A) accept from the owner of the distressed | ||||||
12 | property an execution of any instrument of conveyance | ||||||
13 | of any interest in the distressed property; | ||||||
14 | (B) induce the owner of the distressed property to | ||||||
15 | execute an instrument of conveyance of any interest in | ||||||
16 | the distressed property; or
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17 | (C) record with the county recorder of deeds any | ||||||
18 | document signed by the owner of the distressed | ||||||
19 | property, including but not limited to any instrument | ||||||
20 | of conveyance;
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21 | (7) fail to reconvey title to the distressed property | ||||||
22 | when the terms of the reconveyance contract have been | ||||||
23 | fulfilled; | ||||||
24 | (8) induce the owner of the distressed property to | ||||||
25 | execute a quit claim deed when entering into a distressed | ||||||
26 | property reconveyance; | ||||||
27 | (9) fail to use a notarized warranty deed to convey an | ||||||
28 | interest in a distressed property from the owner of the | ||||||
29 | distressed property to the distressed property purchaser; | ||||||
30 | (10) enter into a distressed property reconveyance | ||||||
31 | where any party to the transaction is represented by power | ||||||
32 | of attorney; | ||||||
33 | (11) fail to extinguish all liens encumbering the | ||||||
34 | distressed property, immediately following the conveyance | ||||||
35 | of the distressed property; or | ||||||
36 | (12) fail to complete a distressed property |
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1 | reconveyance in the offices of a title company licensed by | ||||||
2 | the Department of Financial and Professional Regulation. | ||||||
3 | (c) There is a rebuttable presumption that an appraisal by | ||||||
4 | a person licensed or certified by an agency of this State or | ||||||
5 | the federal government is an accurate determination of the fair | ||||||
6 | market value of the property. | ||||||
7 | (d) "Consideration" in item (2) of subsection (b) means any | ||||||
8 | payment or thing of value provided to the owner of the | ||||||
9 | distressed property, including unpaid rent or contract for deed | ||||||
10 | payments owed by the owner of the distressed property prior to | ||||||
11 | the date of eviction or voluntary relinquishment of the | ||||||
12 | property, reasonable costs paid to third parties necessary to | ||||||
13 | complete the distressed property reconveyance transaction, | ||||||
14 | payment of money to satisfy a debt or legal obligation of the | ||||||
15 | owner of the distressed property, or the reasonable cost of | ||||||
16 | repairs for damage to the dwelling caused by the owner of the | ||||||
17 | distressed property. | ||||||
18 |
"Consideration" shall not include amounts imputed as a | ||||||
19 | downpayment or fee to the distressed property purchaser, or a | ||||||
20 | person acting in participation with the distressed property | ||||||
21 | purchaser, incident to a contract for deed, lease, or option to | ||||||
22 | purchase entered into as part of the distressed property | ||||||
23 | reconveyance, except for reasonable costs paid to third parties | ||||||
24 | necessary to complete the distressed property reconveyance. | ||||||
25 | (e) In the case of a lease with an option to purchase, | ||||||
26 | payment ability also includes the reasonable ability to make | ||||||
27 | the lease payments and purchase the property within the term of | ||||||
28 | the option to purchase after considering medical bills, child | ||||||
29 | support obligations, and debt to income ratio. There is a | ||||||
30 | rebuttable presumption that the distressed property purchaser | ||||||
31 | has not verified reasonable payment ability if the distressed | ||||||
32 | property purchaser has not obtained documents of assets, | ||||||
33 | liabilities, and income, other than a statement by the owner of | ||||||
34 | the distressed property.
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35 | Section 55. Civil remedies.
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1 | (a) A violation of any of the provisions of this Act | ||||||
2 | constitutes an unlawful practice under the Consumer Fraud and | ||||||
3 | Deceptive Business Practices Act. All remedies, penalties, and | ||||||
4 | authority granted to the Attorney General or State's Attorney | ||||||
5 | by the Consumer Fraud and Deceptive Business Practices Act | ||||||
6 | shall be available to him or her for the enforcement of this | ||||||
7 | Act.
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8 | (b) A consumer who suffers loss by reason of any violation | ||||||
9 | of any provision of this Act may bring a civil action in | ||||||
10 | accordance with the Consumer Fraud and Deceptive Business | ||||||
11 | Practices Act to enforce that provision. All remedies and | ||||||
12 | rights granted to a consumer by the Consumer Fraud and | ||||||
13 | Deceptive Business Practices Act shall be available to the | ||||||
14 | consumer bringing such an action.
The remedies and rights | ||||||
15 | provided for in this Act are not exclusive, but cumulative, and | ||||||
16 | the doctrine of equitable mortgage is specifically preserved. | ||||||
17 | Section 60. Criminal mortgage rescue fraud. A person | ||||||
18 | commits the offense of criminal mortgage rescue fraud when he | ||||||
19 | or she intentionally violates any provision enumerated in | ||||||
20 | Section 50 of this Act.
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21 | Section 65. Criminal penalties. A person who commits the | ||||||
22 | offense of criminal mortgage rescue fraud is guilty of a Class | ||||||
23 | 2 felony. | ||||||
24 | Section 300. The Consumer Fraud and Deceptive Business | ||||||
25 | Practices Act is amended by changing Section 2Z as follows:
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26 | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
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27 | Sec. 2Z. Violations of other Acts. Any person who knowingly | ||||||
28 | violates
the Automotive Repair Act, the Automotive Collision | ||||||
29 | Repair Act,
the Home Repair and Remodeling Act,
the Dance | ||||||
30 | Studio Act,
the Physical Fitness Services Act,
the Hearing | ||||||
31 | Instrument Consumer Protection Act,
the Illinois Union Label | ||||||
32 | Act,
the Job Referral and Job Listing Services Consumer |
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1 | Protection Act,
the Travel Promotion Consumer Protection Act,
| ||||||
2 | the Credit Services Organizations Act,
the Automatic Telephone | ||||||
3 | Dialers Act,
the Pay-Per-Call Services Consumer Protection | ||||||
4 | Act,
the Telephone Solicitations Act,
the Illinois Funeral or | ||||||
5 | Burial Funds Act,
the Cemetery Care Act,
the Safe and Hygienic | ||||||
6 | Bed Act,
the Pre-Need Cemetery Sales Act,
the High Risk Home | ||||||
7 | Loan Act, the Payday Loan Reform Act, the Mortgage Rescue Fraud | ||||||
8 | Act, subsection (a) or (b) of Section 3-10 of the
Cigarette Tax | ||||||
9 | Act, the Payday Loan Reform Act, subsection
(a) or (b) of | ||||||
10 | Section 3-10 of the Cigarette Use Tax Act, the Electronic
Mail | ||||||
11 | Act, paragraph (6)
of
subsection (k) of Section 6-305 of the | ||||||
12 | Illinois Vehicle Code, Article 3 of the Residential Real | ||||||
13 | Property Disclosure Act, the Automatic Contract Renewal Act, or | ||||||
14 | the Personal Information Protection Act commits an unlawful | ||||||
15 | practice within the meaning of this Act.
| ||||||
16 | (Source: P.A. 93-561, eff. 1-1-04; 93-950, eff. 1-1-05; 94-13, | ||||||
17 | eff. 12-6-05; 94-36, eff. 1-1-06; 94-280, eff. 1-1-06; 94-292, | ||||||
18 | eff. 1-1-06; revised 8-19-05.)
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19 | Section 999. Effective date. This Act takes effect January | ||||||
20 | 1, 2007.
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