Illinois governor Pat Quinn signed a new law into legislature for the state that allows more time for struggling homeowners to work out a plan to keep their homes rather than foreclose. He decided to allow up to 90 days for the borrower to work out a plan with their lender in order to stay in their home. The governor feels this new law will allow more room for the borrower to try to keep their homes. The fear of increasing numbers of foreclosures is on the minds of many and another 103,000 foreclosures are anticipated for 2009.

There will be a 90 day grace period for the homeowner that is unable to pay their mortgage. Before sending off a foreclosure notice, the lender is expected to wait at least 30 days before sending a notice to the borrower to seek credit counseling. After 60 days the lender will be allowed to notify the borrower that they have 30 days to develop a payment plan with their lender.

Foreclosure proceedings are allowed to proceed after the 90 days. However, if the homeowner doesn’t seek credit counseling then the new law will not be in effect for them. They must determine what they can do in order to catch up with their mortgage payments or they could lose their home much sooner than they think. The new law is only effective for those that are trying to keep their homes and not foreclose.