McHenry County Blog

A press release from Pam Althoff:

Senate approves Althoff bill expediting foreclosures on abandoned homes

Pam Althoff on Senate Floor. Photo credit: Senate Republican Staff.

SPRINGFIELD, IL. – Homes abandoned by their owners can now be foreclosed at a faster pace, under new legislation co-sponsored by State Sen. Pamela Althoff (R-McHenry).

Under Senate Bill 2534, those who hold mortgages can seek an expedited foreclosure process from the courts – under current law the foreclosure process takes about 500 days.

“Abandoned homes and properties are not only a blight to neighborhoods that result in lower nearby property values, they pose a safety threat to people in surrounding households,” Althoff said.

“This legislation will help the courts move quicker in deeming these properties abandoned so they can be torn down or turned into property that’s useful for local communities.”

The measure also generates about $25 million to local municipalities to help offset costs associated with maintaining abandoned homes, funded through a $250 filing fee for plaintiffs who file foreclosure complaints for residential properties.

“Many local governments are facing serious budget deficits – the last thing they need is to pay the cost of maintaining abandoned homes when there are so many other crucial priorities that need attention, from education to public safety,” Althoff said.

“This legislation is a common-sense way we can help cities, towns and villages offset the cost of caring for abandoned homes, at no cost to taxpayers.”

Having passed the Senate by a vote of 38 to 3, Senate Bill 2534 now moves to the House for further consideration.

And, you can find them here.

There are all sorts of questions, but the home ownership section caught my attention:

• Is U.S. policy too focused on increasing the rate of home ownership?
• Should the unlimited tax deduction for home mortgage interest be capped?
• At what level?
• What would you do with Fannie Mae and Freddie Mac?

Manzullo wrote a long answer, but this is what popped out:

“Home ownership is a worthy goal because then more people have a stake in their local community. The problem is that if individuals put no down payment and are subject to interest-only loans during the first several years, this type of home ownership is almost no better than renting. These individuals have no “skin in the game” and it provides a huge incentive to walk away from mortgage obligations if the going gets tough.

“That is why I have voted for provisions to increase the minimum down payment requirement to 5 percent and prohibit closing costs from being financed by the Federal Housing Administration (FHA).

“If Habitat for Humanity makes low-income persons put some stake into the homes they build, the same principle should hold true for those seeking a FHA-backed mortgage.”

Further chipping away at his “different kind of politician” image is a Washington Post report that Barack and Michelle Obama received a below market loan from the Northern Trust.

“The Obamas had no prior relationship with Northern Trust when they applied for the loan,” the Post added.

It “could have saved him $300 a month,” the paper reports, “compared with the average terms offered at the time in Chicago.”

“Around the same time, the University of Chicago Hospitals promoted Michelle Obama to a vice president and more than doubled her pay, to $317,000,” the paper noted.

The bank’s political action committee also donated “$71,000 to Obama, according to the Center for Responsive Politics” since 1990.

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The photo of U.S. Senator Barack Obama comes from his campaign web site.

Further chipping away at his “different kind of politician” image is a Washington Post report that Barack and Michelle Obama received a below market loan from the Northern Trust.

“The Obamas had no prior relationship with Northern Trust when they applied for the loan,” the Post added.

It “could have saved him $300 a month,” the paper reports, “compared with the average terms offered at the time in Chicago.”

“Around the same time, the University of Chicago Hospitals promoted Michelle Obama to a vice president and more than doubled her pay, to $317,000,” the paper noted.

The bank’s political action committee also donated “$71,000 to Obama, according to the Center for Responsive Politics” since 1990.

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The photo of U.S. Senator Barack Obama comes from his campaign web site.