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91_HB1781eng
HB1781 Engrossed LRB9105136WHpr
1 AN ACT to amend the Code of Civil Procedure by changing
2 Section 15-1603.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Code of Civil Procedure is amended by
6 changing Section 15-1603 as follows:
7 (735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
8 Sec. 15-1603. Redemption.
9 (a) Owner of Redemption. Except as provided in
10 subsection (b) of Section 15-1402, only an owner of
11 redemption may redeem from the foreclosure, and such owner of
12 redemption may redeem only during the redemption period
13 specified in subsection (b) of Section 15-1603 and only if
14 the right of redemption has not been validly waived.
15 (b) Redemption Period.
16 (1) In the foreclosure of a mortgage of real estate
17 that which is residential real estate at the time the
18 foreclosure is commenced, the redemption period shall end
19 on the later of (i) the date 7 months from the date the
20 mortgagor or, if more than one, all the mortgagors (A)
21 have been served with summons or by publication or (B)
22 have otherwise submitted to the jurisdiction of the
23 court, or (ii) the date 3 months from the date of entry
24 of a judgment of foreclosure.
25 (2) In all other foreclosures, the redemption
26 period shall end on the later of (i) the date 6 months
27 from the date the mortgagor or, if more than one, all the
28 mortgagors (A) have been served with summons or by
29 publication or (B) have otherwise submitted to the
30 jurisdiction of the court, or (ii) the date 3 months from
31 the date of entry of a judgment of foreclosure.
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1 (3) Notwithstanding paragraphs (1) and (2), the
2 redemption period shall end at the later of the
3 expiration of any reinstatement period provided for in
4 Section 15-1602 or the date 60 days after the date the
5 judgment of foreclosure is entered, if the court finds
6 that (i) the value of the mortgaged real estate as of the
7 date of the judgment is less than 90% of the amount
8 specified pursuant to subsection (d) of Section 15-1603
9 and (ii) the mortgagee waives any and all rights to a
10 personal judgment for a deficiency against the mortgagor
11 and against all other persons liable for the indebtedness
12 or other obligations secured by the mortgage.
13 (4) Notwithstanding paragraphs (1) and (2), the
14 redemption period shall end on the date 30 days after the
15 date the judgment of foreclosure is entered if the court
16 finds that the mortgaged real estate has been abandoned.
17 In cases where the redemption period is shortened on
18 account of abandonment, the reinstatement period shall
19 not extend beyond the redemption period as shortened.
20 (c) Extension of Redemption Period.
21 (1) Once expired, the right of redemption provided
22 for in Sections 15-1603 or 15-1604 shall not be revived.
23 The period within which the right of redemption provided
24 for in Sections 15-1603 or 15-1604 may be exercised runs
25 independently of any action by any person to enforce the
26 judgment of foreclosure or effect a sale pursuant
27 thereto. Neither the initiation of any legal proceeding
28 nor the order of any court staying the enforcement of a
29 judgment of foreclosure or the sale pursuant to a
30 judgment or the confirmation of the sale, shall have the
31 effect of tolling the running of the redemption period.
32 (2) If a court has the authority to stay, and does
33 stay, the running of the redemption period, or if the
34 redemption period is extended by any statute of the
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1 United States, the redemption period shall be extended
2 until the expiration of the same number of days after the
3 expiration of the stay order as the number of days
4 remaining in the redemption period at the time the stay
5 order became effective, or, if later, until the
6 expiration of 30 days after the stay order terminates. If
7 the stay order terminates more than 30 days prior to the
8 expiration of the redemption period, the redemption
9 period shall not be extended.
10 (d) Amount Required to Redeem. The amount required to
11 redeem shall be the sum of:
12 (1) The amount specified in the judgment of
13 foreclosure, which shall consist of (i) all principal and
14 accrued interest secured by the mortgage and due as of
15 the date of the judgment, (ii) all costs allowed by law,
16 (iii) costs and expenses approved by the court, (iv) to
17 the extent provided for in the mortgage and approved by
18 the court, additional costs, expenses and reasonable
19 attorneys' fees incurred by the mortgagee, (v) all
20 amounts paid pursuant to Section 15-1505 and (vi) per
21 diem interest from the date of judgment to the date of
22 redemption calculated at the mortgage rate of interest
23 applicable as if no default had occurred; and
24 (2) The amount of other expenses authorized by the
25 court which the mortgagee reasonably incurs between the
26 date of judgment and the date of redemption, which shall
27 be the amount certified by the mortgagee in accordance
28 with subsection (e) of Section 15-1603.
29 (e) Notice of Intent to Redeem. An owner of redemption
30 who intends to redeem shall give written notice of such
31 intent to redeem to the mortgagee's attorney of record
32 specifying the date designated for redemption and the current
33 address of the owner of redemption for purposes of receiving
34 notice. Such owner of redemption shall file with the clerk
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1 of the court a certification of the giving of such notice.
2 The notice of intent to redeem must be received by the
3 mortgagee's attorney at least 15 days (other than Saturday,
4 Sunday or court holiday) prior to the date designated for
5 redemption. The mortgagee shall thereupon file with the
6 clerk of the court and shall give written notice to the owner
7 of redemption at least three days (other than Saturday,
8 Sunday or court holiday) before the date designated for
9 redemption a certification, accompanied by copies of paid
10 receipts or appropriate affidavits, of any expenses
11 authorized in paragraph (2) of subsection (d) of Section
12 15-1603. If the mortgagee fails to serve such certification
13 within the time specified herein, then the owner of
14 redemption intending to redeem may redeem on the date
15 designated for redemption in the notice of intent to redeem,
16 and the mortgagee shall not be entitled to payment of any
17 expenses authorized in paragraph (2) of subsection (d) of
18 Section 15-1603.
19 (f) Procedure for Redemption.
20 (1) An owner of redemption may redeem the real
21 estate from the foreclosure by paying the amount
22 specified in subsection (d) of Section 15-1603 to the
23 mortgagee or the mortgagee's attorney of record on or
24 before the date designated for redemption pursuant to
25 subsection (e) of Section 15-1603.
26 (2) If the mortgagee refuses to accept payment or
27 if the owner of redemption redeeming from the foreclosure
28 objects to the reasonableness of the additional expenses
29 authorized in paragraph (2) of subsection (d) of Section
30 15-1603 and certified in accordance with subsection (e)
31 of Section 15-1603, the owner of redemption shall pay the
32 certified amount to the clerk of the court on or before
33 the date designated for redemption, together with a
34 written statement specifying the expenses to which
HB1781 Engrossed -5- LRB9105136WHpr
1 objection is made. In such case the clerk shall pay to
2 the mortgagee the amount tendered minus the amount to
3 which the objection pertains.
4 (3) Upon payment to the clerk, whether or not the
5 owner of redemption files an objection at the time of
6 payment, the clerk shall give a receipt of payment to the
7 person redeeming from the foreclosure, and shall file a
8 copy of that receipt in the foreclosure record. Upon
9 receipt of the amounts specified to be paid to the
10 mortgagee pursuant to this Section, the mortgagee shall
11 promptly furnish the mortgagor with a release of the
12 mortgage or satisfaction of the judgment, as appropriate,
13 and the evidence of all indebtedness secured by the
14 mortgage shall be cancelled.
15 (g) Procedure Upon Objection. If an objection is filed
16 by an owner of redemption in accordance with paragraph (2) of
17 subsection (f) of Section 15-1603, the clerk shall hold the
18 amount to which the objection pertains until the court orders
19 distribution of those funds. The court shall hold a hearing
20 promptly to determine the distribution of any funds held by
21 the clerk pursuant to such objection. Each party shall pay
22 its own costs and expenses in connection with any objection,
23 including attorneys' fees, subject to Section 2-611 of the
24 Code of Civil Procedure.
25 (h) Failure to Redeem. Unless the real estate being
26 foreclosed is redeemed from the foreclosure, it shall be sold
27 as provided in this Article.
28 (Source: P.A. 86-974.)
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