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Financial Services Law Insights and Observations

Illinois Passes Law Requiring Courts to Set Aside Certain Judicial Sales Related to HAMP

State Issues

On July 23, Illinois Governor Pat Quinn signed HB 5735, a bill requiring courts to set aside judicial sales of real estate under certain circumstances. Under the law, if a mortgagor can prove prior to confirmation of the sale that he or she had applied for assistance under the Home Affordable Modification Program (HAMP), and that the judicial sale materially violated HAMP’s procedural requirements, then the court must set the sale aside. The bill is effective immediately.