State lawmakers have done little this year to address the foreclosure crisis, but a group of Chicago-area housing advocates took a trip to Springfield this week to push a more proactive housing agenda.
At this time last year, it was obvious that some Illinois lawmakers were feeling the heat from their constituents to fight the foreclosure-related blight that was quickly starting to dominate their blocks. In response, a bevy of legislation was introduced to protect the unwitting victims of the crisis. But as regular readers may recall, some important consumer protections were stripped from the final bills. As a result, residents -- and not lenders -- were left to deal with the financial consequences that accompany neighborhood vacancies.
Unfortunately, there's been little legislative response in the Illinois Statehouse this year. But a group of Chicago-area housing advocates led by the non-profit Action Now took a trip to Springfield this week to push their housing agenda.
First up, they're calling on lawmakers to help slow the number of new foreclosure cases by funneling more money into mediation programs using proceeds from foreclosure sales. The folks over at Business and Professional People for the Public Interest (BPI) helped craft the proposal. Requiring banks to fork over $1,000 from each closing on a foreclosed property, according to BPI attorney Adam Gross, would have net $40 million to bolster mediation programs last year. As regular readers know all too well, mediation services have proven to be the most effective resource available to struggling homeowners. As the feds roll out their new mortgage modification initiative, it will be increasingly important that Illinois has mediators to help people wade successfully through the process. That, in turn, should help stabilize more neighborhoods.
With the clean up from the foreclosure fallout still far from finished, the second top legislative priority for the folks over at Action Now and BPI is making the banks more accountable for maintaining the glut of vacant properties that have disproportionately impacted low-income neighborhoods. Specifically, they're calling for a measure that would strengthen municipalities' authority to hold every person listed in the foreclosure case -- from owners and trustees to mortgage-holders and servicers -- responsible for maintaining and securing their lots. The House passed a measure that included the provision last year, but it was ultimately stripped from the bill before it was passed by the Senate. "We need to make sure that the neighbors aren't suffering," Gross says, "because of the foreclosure next door."
While a handful of lawmakers have expressed interest, none have committed to introducing either of the bills just yet, Action Now's Aileen Kelleher tells us. Stay tuned.
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