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Public Act 099-0439 |
SB1487 Enrolled | LRB099 09675 HEP 29884 b |
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Counties Code is amended by adding Section |
3-5010.7 as follows: |
(55 ILCS 5/3-5010.7 new) |
Sec. 3-5010.7. Foreclosure property pilot program. |
(a) The recorder in a county with a population of more than |
3,000,000 shall establish a pilot program that permits |
documents to be recorded against a property in foreclosure by |
judicial order only. |
(b) Beginning January 1, 2016, upon motion by the plaintiff |
in a foreclosure action, the judge shall issue an order barring |
any nonrecord claimants from recording, without approval of the |
court, an interest on the property that is the subject of the |
foreclosure action. The order shall also prohibit the owner of |
the property from recording any document without judicial |
approval except for court orders related to the foreclosure |
case or court orders related to the property that were entered |
after the effective date of the order prohibiting recordation. |
The term "nonrecord claimant", for purposes of this Act, has |
the meaning ascribed to that term in Section 15-1210 of the |
Code of Civil Procedure. The order shall expire on the date of |
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the court order confirming the judicial sale of the property |
pursuant to a judgment of foreclosure unless renewed by order |
of the judge. |
(c) Upon inspecting the order and making a determination |
that the order is valid and prevents any nonrecord claimants |
from recording an interest on the property without court |
approval, the recorder shall record the court's order as a |
separate document in the chain of title, after the notice of |
foreclosure. It is the responsibility of the plaintiff to |
attach any necessary exhibits to fulfill statutory recording |
requirements. The recorder may charge the standard and |
applicable recording fees at the time the order is presented |
for recording. |
(d) If a court order has been recorded under this Section, |
a nonrecord claimant shall not record a document regarding the |
property that is the subject of the foreclosure action without |
a certified court order. A nonrecord claimant shall obtain a |
certified court order by filing a motion in the office of the |
clerk of the court in which the action is pending. The court |
shall then issue a dated certified order indicating the type of |
document to be recorded, the person or entity authorized to |
record, the property index number of the property, and the case |
number of the foreclosure. The order must be presented in |
person to designated staff in the recorder's office along with |
the document to be recorded. The recorder shall not accept |
recordings subject to this Section by mail or electronic |
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submission. A mechanics lien claimant, unit of government, or |
any duly appointed persons or entities acting as agents for a |
unit of government or judicial body shall not be required to |
obtain a certified court order in accordance with this |
subsection in order to record a document on the property that |
is the subject of a foreclosure action. |
(e) The recorder is authorized to inspect the photo |
identification of any person attempting to record a document on |
a title that is subject to a court order under this Section and |
may deny recordation to any person who refuses to provide |
proper photo identification. |
(f) Once the foreclosure is finalized and a new deed is |
issued, an official court order confirming the sale must be |
presented for inspection at the time of recordation of the deed |
as evidence of the expiration of the order prohibiting |
recordation. |
(g) This Section does not apply to a mortgagee or its agent |
that recorded the lis pendens notice of foreclosure. |
(h) If a document is recorded contrary to a court's order |
and the recorder determines that the recorder's office is |
responsible for the error, the recorder shall notify in writing |
the person recording the document, if possible, and if after 30 |
days' notice or 30 days after the recording when the recorder |
is unable to notify the filer and that person fails to obtain |
the certified order required under subsection (d), the recorder |
shall then record a new document clearly referencing the |
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document number of the erroneous recording and indicating that |
it has been voided. If feasible, the recorder shall watermark |
the erroneous recording as voided using the word "voided". |
(i) Except in cases of willful or wanton misconduct, the |
recorder, or any agent or employee of the recorder, is immune |
from any liability under this Section. |
(j) The program implemented under this amendatory Act of |
the 99th General Assembly shall be considered a pilot program |
from January 1, 2016 to January 1, 2019. The recorder may end |
the pilot program earlier than January 1, 2019 by sending a |
certified letter to the Chief Judge of the county if the |
recorder determines that either workforce challenges or |
computer hardware or software limitations have prevented the |
effective implementation and operation of the program. The |
recorder shall enforce in good faith any frozen title requests |
initiated prior to cancelling the pilot program. |
(k) This Section is repealed on January 1, 2019.
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