030923CM0340sSPRINGFIELD – In order to protect victims of wrongful foreclosures that occurred during the COVID pandemic, State Senator Laura Murphy has introduced a bill that would seal foreclosure records that were initiated during the foreclosure moratoria.

“Many families struggled with job and income losses due to the pandemic. As a result, they fell behind on rent and mortgage payments,” said Murphy (D-Des Plaines). “Despite the protections put in place at the state and federal level, many families wrongfully lost their homes. We need to do our part to ensure that our hardworking families do not suffer from the negative impacts of foreclosure.”

The measure would allow a mortgagor to request that foreclosure records be sealed if they were meant to be protected under the moratoria enacted by the Federal National Mortgage Association, the Federal Home Loan Corporation, the Federal Housing Administration, or the Department of Veterans Affairs.

According to ATTOM, a property and real estate data platform, nationally nearly 12,000 properties had foreclosure filings in October 2020. In October 2021, one in every 1,923 homes in Illinois faced foreclosure. Chicago ranked fourth among cities with a population of at least 220,000 with one in every 2,284 homes facing foreclosure.

“Foreclosures on an individual’s record can have countless impacts, including their ability to qualify for another mortgage, which will only perpetuate the cycle started by these wrongful foreclosures,” said Murphy. “I want to protect the families of Illinois, and prevent wrongful foreclosures from sabotaging their futures.”

Senate Bill 201 passed the Senate Judiciary Committee on Tuesday. It now goes to the Senate floor for further deliberation.