- Illinois strictly regulates foreclosure consultants under its Mortgage Rescue Fraud Act. 765 ILCS 940 et al. (see http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2795&ChapAct=765%26nbsp%3BILCS%26n bsp%3B940%2F&ChapterID=62&ChapterName=PROPERTY&ActName=Mortgage+Rescue+F raud+Act%2E) for statute.
- The State:
- Requires written contracts, notices and format styles; Requires full disclosure per statute; Sets statutory cap of fees collectable
- Allows cancellation of contract any time before full performance of services by “distressed property consultant” with written notice
- Prohibits up front fees; Prohibits power of attorney to distressed property consultant
- Voids waiver of written contracts
- Provides for civil remedies and penalties.
- Licensed attorneys are exempt from the definition of “distressed property consultant”
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