Public Act 096-1245
 
HB5735 EnrolledLRB096 17949 AJO 33317 b


  
    AN ACT concerning civil law.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Code of Civil Procedure is amended  by 
changing Section 15-1508 as follows:
 
    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
    Sec. 15-1508. Report of Sale and Confirmation of Sale. 
    (a) Report. The person conducting the sale shall promptly 
make a report to
the court, which report shall include a copy 
of all receipts and, if any,
certificate of sale.
    (b) Hearing. Upon motion and notice in accordance with 
court rules
applicable to motions generally, which motion shall 
not be made prior to
sale, the court shall conduct a hearing to

confirm the sale. Unless the court finds that (i) a notice 
required in
accordance with subsection (c) of Section 15-1507 
was not given, (ii) the
terms of sale were unconscionable, 
(iii) the sale was conducted
fraudulently or (iv) that justice 
was otherwise not done, the court shall
then enter an order 
confirming the sale.  The confirmation order shall include a 
name, address, and telephone number of the holder of the 
certificate of sale or deed issued pursuant to that certificate 
or, if no certificate or deed was issued, the purchaser, whom a 
municipality or county may contact with concerns about the real 
estate. The confirmation order may
also:
        (1) approve the mortgagee's fees and costs arising 
    between the entry of
the judgment of foreclosure and the 
    confirmation hearing, those costs and
fees to be allowable 
    to the same extent as provided in the note and mortgage
and 
    in Section 15-1504;
        (2) provide for a personal judgment against any party 
    for a deficiency;
and 
        (3) determine the priority of the judgments of parties 
    who deferred proving
the priority pursuant to subsection 
    (h) of Section 15-1506, but
the court shall not
defer 
    confirming the sale pending the determination of such 
    priority. 
    (b-5) Notice with respect to residential real estate. With 
respect to residential real estate, the notice required under 
subsection (b) of this Section  shall be sent to the mortgagor 
even if the mortgagor has previously been held in default. In 
the event the mortgagor has filed an appearance, the notice 
shall be sent to the address indicated on the appearance. In 
all other cases, the notice shall be sent to the mortgagor at 
the common address of the foreclosed property. The notice shall 
be sent by first class mail. Unless the right to possession has 
been previously terminated by the court, the notice shall 
include the following language in 12-point boldface 
capitalized type: 
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO 
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF 
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE 
ILLINOIS MORTGAGE FORECLOSURE LAW.
    (b-10)  Notice of confirmation order sent to municipality or 
county.  A copy of the confirmation order required under 
subsection (b) shall be sent to the municipality in which the 
foreclosed property is located, or to the county within the 
boundary of which the foreclosed property is located if the 
foreclosed property is located in an unincorporated territory. 
A municipality or county must clearly publish on its website a 
single address to which such notice shall be sent. If a 
municipality or county does not maintain a website, then the 
municipality or county must publicly post in its main office a 
single address to which such notice shall be sent. In the event 
that a municipality or county has not complied with the 
publication requirement in this subsection (b-10), then such 
notice to the municipality or county shall be provided pursuant 
to Section 2-211 of the Code of Civil Procedure. 
    (c) Failure to Give Notice. If any sale is held without 
compliance with
subsection (c) of Section 15-1507 of this 
Article, any party entitled to
the notice provided for in 
paragraph (3) of that subsection
(c) who was not so notified 
may, by motion supported by affidavit
made prior to 
confirmation of such sale, ask the court which entered the

judgment to set aside the sale. Any such party shall guarantee 
or secure by bond a bid equal to the successful bid at the 
prior sale, unless the party seeking to set aside the sale is 
the mortgagor, the real estate sold at the sale is residential 
real estate, and the mortgagor occupies the residential real 
estate at the time the motion is filed. In that event, no 
guarantee or bond shall be required of the mortgagor. Any

subsequent sale is subject to the same notice requirement as 
the original sale.
    (d) Validity of Sale. Except as provided in subsection (c) 
of Section
15-1508, no sale under this Article shall be held 
invalid or be set aside
because of any defect in the notice 
thereof or in the publication of the
same, or in the 
proceedings of the officer conducting the sale, except upon

good cause shown in a hearing pursuant to subsection (b) of 
Section
15-1508. At any time after a sale has occurred, any 
party entitled to
notice under paragraph (3) of subsection (c) 
of Section 15-1507 may recover
from the mortgagee any damages 
caused by the mortgagee's failure to comply
with such paragraph 
(3). Any party who recovers damages in a judicial
proceeding 
brought under this subsection may also recover from the

mortgagee the reasonable expenses of litigation, including 
reasonable attorney's fees.
    (d-5)    Making Home Affordable Program.  The court that 
entered the judgment shall set aside a sale held pursuant to 
Section 15-1507, upon motion of the mortgagor at any time prior 
to the confirmation of the sale, if the mortgagor proves by a 
preponderance of the evidence that (i) the mortgagor has 
applied for assistance under the Making Home Affordable Program 
established by the United States Department of the Treasury 
pursuant to the Emergency Economic Stabilization Act of 2008, 
as amended by the American Recovery and Reinvestment Act of 
2009, and (ii) the mortgaged real estate was sold in material 
violation of the program's requirements for proceeding to a 
judicial sale.  The provisions of this subsection (d-5), except 
for this sentence, shall become inoperative on January 1, 2013 
for all actions filed under this Article after December 31, 
2012, in which the mortgagor did not apply for assistance under 
the Making Home Affordable Program on or before December 31, 
2012. 
    (e) Deficiency Judgment. In any order confirming a sale 
pursuant to the
judgment of foreclosure, the court shall also 
enter a personal judgment
for deficiency against any party (i) 
if otherwise authorized and (ii) to
the extent requested in the 
complaint and proven upon presentation of the
report of sale in 
accordance with Section 15-1508. Except as otherwise provided

in this Article, a judgment may be entered for any balance of 
money that
may be found due to the plaintiff, over and above 
the proceeds of the sale
or sales, and enforcement may be had 
for the collection of such balance,
the same as when the 
judgment is solely for the payment of money. Such
judgment may 
be entered, or enforcement had,
only in cases where personal 
service has been had upon the
persons personally liable for the 
mortgage indebtedness, unless they have
entered their 
appearance in the foreclosure action.
    (f) Satisfaction. Upon confirmation of the sale, the

judgment stands satisfied to the extent of the sale price less 
expenses and
costs. If the order confirming the sale includes a 
deficiency judgment, the
judgment shall become a lien in the 
manner of any other
judgment for the payment of money.
    (g) The order confirming the sale shall include, 
notwithstanding any
previous orders awarding possession during 
the pendency of the foreclosure, an
award to the purchaser of 
possession of the mortgaged real estate, as of the
date 30 days 
after the entry of the order, against the
parties to the 
foreclosure whose interests have been terminated.
    An order of possession authorizing the removal of a person 
from possession
of the mortgaged real estate shall be entered 
and enforced only against those
persons personally
named as 
individuals in the complaint or the petition under subsection 
(h)
of Section 15-1701 and in the order of possession and shall

not be entered and enforced against any person who is only 
generically
described as an
unknown owner or nonrecord claimant 
or by another generic designation in the
complaint.
    Notwithstanding the preceding paragraph, the failure to 
personally
name,
include, or seek an award of
possession of the 
mortgaged real estate against a person in the
confirmation 
order shall not abrogate any right that the purchaser may have 
to
possession of the mortgaged real estate and to maintain a 
proceeding against
that person for
possession under Article 9 
of this Code or subsection (h) of Section 15-1701;
and 
possession against a person
who (1) has not been personally 
named as a party to the
foreclosure and (2) has not been 
provided an opportunity to be heard in the
foreclosure 
proceeding may be sought only by maintaining a
proceeding under 
Article 9 of this
Code or subsection (h) of Section 15-1701.
(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09; 
96-856, eff. 3-1-10.)
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.