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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Code of Civil Procedure is amended by | ||||||
5 | changing Section 15-1508 as follows: | ||||||
6 | (735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508) | ||||||
7 | Sec. 15-1508. Report of Sale and Confirmation of Sale. | ||||||
8 | (a) Report. The person conducting the sale shall promptly | ||||||
9 | make a report to
the court, which report shall include a copy | ||||||
10 | of all receipts and, if any,
certificate of sale. | ||||||
11 | (b) Hearing. Upon motion and notice in accordance with | ||||||
12 | court rules
applicable to motions generally, which motion shall | ||||||
13 | not be made prior to
sale, the court shall conduct a hearing to
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14 | confirm the sale. Unless the court finds that (i) a notice | ||||||
15 | required in
accordance with subsection (c) of Section 15-1507 | ||||||
16 | was not given, (ii) the
terms of sale were unconscionable, | ||||||
17 | (iii) the sale was conducted
fraudulently or (iv) that justice | ||||||
18 | was otherwise not done, the court shall
then enter an order | ||||||
19 | confirming the sale. The confirmation order shall include a | ||||||
20 | name, address, and telephone number of the holder of the | ||||||
21 | certificate of sale or deed issued pursuant to that certificate | ||||||
22 | or, if no certificate or deed was issued, the purchaser, whom a | ||||||
23 | municipality or county may contact with concerns about the real |
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1 | estate. The confirmation order may
also: | ||||||
2 | (1) approve the mortgagee's fees and costs arising | ||||||
3 | between the entry of
the judgment of foreclosure and the | ||||||
4 | confirmation hearing, those costs and
fees to be allowable | ||||||
5 | to the same extent as provided in the note and mortgage
and | ||||||
6 | in Section 15-1504; | ||||||
7 | (2) provide for a personal judgment against any party | ||||||
8 | for a deficiency;
and | ||||||
9 | (3) determine the priority of the judgments of parties | ||||||
10 | who deferred proving
the priority pursuant to subsection | ||||||
11 | (h) of Section 15-1506, but
the court shall not
defer | ||||||
12 | confirming the sale pending the determination of such | ||||||
13 | priority. | ||||||
14 | (b-5) Notice with respect to residential real estate. With | ||||||
15 | respect to residential real estate, the notice required under | ||||||
16 | subsection (b) of this Section shall be sent to the mortgagor | ||||||
17 | even if the mortgagor has previously been held in default. In | ||||||
18 | the event the mortgagor has filed an appearance, the notice | ||||||
19 | shall be sent to the address indicated on the appearance. In | ||||||
20 | all other cases, the notice shall be sent to the mortgagor at | ||||||
21 | the common address of the foreclosed property. The notice shall | ||||||
22 | be sent by first class mail. Unless the right to possession has | ||||||
23 | been previously terminated by the court, the notice shall | ||||||
24 | include the following language in 12-point boldface | ||||||
25 | capitalized type: | ||||||
26 | IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO |
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1 | REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | ||||||
2 | POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | ||||||
3 | ILLINOIS MORTGAGE FORECLOSURE LAW. | ||||||
4 | (b-10) Notice of confirmation order sent to municipality or | ||||||
5 | county. A copy of the confirmation order required under | ||||||
6 | subsection (b) shall be sent to the municipality in which the | ||||||
7 | foreclosed property is located, or to the county within the | ||||||
8 | boundary of which the foreclosed property is located if the | ||||||
9 | foreclosed property is located in an unincorporated territory. | ||||||
10 | A municipality or county must clearly publish on its website a | ||||||
11 | single address to which such notice shall be sent. If a | ||||||
12 | municipality or county does not maintain a website, then the | ||||||
13 | municipality or county must publicly post in its main office a | ||||||
14 | single address to which such notice shall be sent. In the event | ||||||
15 | that a municipality or county has not complied with the | ||||||
16 | publication requirement in this subsection (b-10), then such | ||||||
17 | notice to the municipality or county shall be provided pursuant | ||||||
18 | to Section 2-211 of the Code of Civil Procedure. | ||||||
19 | (c) Failure to Give Notice. If any sale is held without | ||||||
20 | compliance with
subsection (c) of Section 15-1507 of this | ||||||
21 | Article, any party entitled to
the notice provided for in | ||||||
22 | paragraph (3) of that subsection
(c) who was not so notified | ||||||
23 | may, by motion supported by affidavit
made prior to | ||||||
24 | confirmation of such sale, ask the court which entered the
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25 | judgment to set aside the sale. Any such party shall guarantee | ||||||
26 | or secure by bond a bid equal to the successful bid at the |
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1 | prior sale, unless the party seeking to set aside the sale is | ||||||
2 | the mortgagor, the real estate sold at the sale is residential | ||||||
3 | real estate, and the mortgagor occupies the residential real | ||||||
4 | estate at the time the motion is filed. In that event, no | ||||||
5 | guarantee or bond shall be required of the mortgagor. Any
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6 | subsequent sale is subject to the same notice requirement as | ||||||
7 | the original sale. | ||||||
8 | (d) Validity of Sale. Except as provided in subsection (c) | ||||||
9 | of Section
15-1508, no sale under this Article shall be held | ||||||
10 | invalid or be set aside
because of any defect in the notice | ||||||
11 | thereof or in the publication of the
same, or in the | ||||||
12 | proceedings of the officer conducting the sale, except upon
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13 | good cause shown in a hearing pursuant to subsection (b) of | ||||||
14 | Section
15-1508. At any time after a sale has occurred, any | ||||||
15 | party entitled to
notice under paragraph (3) of subsection (c) | ||||||
16 | of Section 15-1507 may recover
from the mortgagee any damages | ||||||
17 | caused by the mortgagee's failure to comply
with such paragraph | ||||||
18 | (3). Any party who recovers damages in a judicial
proceeding | ||||||
19 | brought under this subsection may also recover from the
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20 | mortgagee the reasonable expenses of litigation, including | ||||||
21 | reasonable attorney's fees. | ||||||
22 | (d-5) Making Home Affordable Program. The court that | ||||||
23 | entered the judgment shall set aside a sale held pursuant to | ||||||
24 | Section 15-1507, upon motion of the mortgagor at any time prior | ||||||
25 | to the confirmation of the sale, if the mortgagor proves by a | ||||||
26 | preponderance of the evidence that (i) the mortgagor has |
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1 | applied for assistance under the Making Home Affordable Program | ||||||
2 | established by the United States Department of the Treasury | ||||||
3 | pursuant to the Emergency Economic Stabilization Act of 2008, | ||||||
4 | as amended by the American Recovery and Reinvestment Act of | ||||||
5 | 2009, and (ii) the mortgaged real estate was sold in material | ||||||
6 | violation of the program's requirements for proceeding to a | ||||||
7 | judicial sale. The provisions of this subsection (d-5), except | ||||||
8 | for this sentence, shall become inoperative on January 1, 2013 | ||||||
9 | for all actions filed under this Article after December 31, | ||||||
10 | 2012, in which the mortgagor did not apply for assistance under | ||||||
11 | the Making Home Affordable Program on or before December 31, | ||||||
12 | 2012. | ||||||
13 | (e) Deficiency Judgment. In any order confirming a sale | ||||||
14 | pursuant to the
judgment of foreclosure, the court shall also | ||||||
15 | enter a personal judgment
for deficiency against any party (i) | ||||||
16 | if otherwise authorized and (ii) to
the extent requested in the | ||||||
17 | complaint and proven upon presentation of the
report of sale in | ||||||
18 | accordance with Section 15-1508. Except as otherwise provided
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19 | in this Article, a judgment may be entered for any balance of | ||||||
20 | money that
may be found due to the plaintiff, over and above | ||||||
21 | the proceeds of the sale
or sales, and enforcement may be had | ||||||
22 | for the collection of such balance,
the same as when the | ||||||
23 | judgment is solely for the payment of money. Such
judgment may | ||||||
24 | be entered, or enforcement had,
only in cases where personal | ||||||
25 | service has been had upon the
persons personally liable for the | ||||||
26 | mortgage indebtedness, unless they have
entered their |
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1 | appearance in the foreclosure action. | ||||||
2 | (f) Satisfaction. Upon confirmation of the sale, the
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3 | judgment stands satisfied to the extent of the sale price less | ||||||
4 | expenses and
costs. If the order confirming the sale includes a | ||||||
5 | deficiency judgment, the
judgment shall become a lien in the | ||||||
6 | manner of any other
judgment for the payment of money. | ||||||
7 | (g) The order confirming the sale shall include, | ||||||
8 | notwithstanding any
previous orders awarding possession during | ||||||
9 | the pendency of the foreclosure, an
award to the purchaser of | ||||||
10 | possession of the mortgaged real estate, as of the
date 30 days | ||||||
11 | after the entry of the order, against the
parties to the | ||||||
12 | foreclosure whose interests have been terminated. | ||||||
13 | An order of possession authorizing the removal of a person | ||||||
14 | from possession
of the mortgaged real estate shall be entered | ||||||
15 | and enforced only against those
persons personally
named as | ||||||
16 | individuals in the complaint or the petition under subsection | ||||||
17 | (h)
of Section 15-1701 and in the order of possession and shall
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18 | not be entered and enforced against any person who is only | ||||||
19 | generically
described as an
unknown owner or nonrecord claimant | ||||||
20 | or by another generic designation in the
complaint. | ||||||
21 | Notwithstanding the preceding paragraph, the failure to | ||||||
22 | personally
name,
include, or seek an award of
possession of the | ||||||
23 | mortgaged real estate against a person in the
confirmation | ||||||
24 | order shall not abrogate any right that the purchaser may have | ||||||
25 | to
possession of the mortgaged real estate and to maintain a | ||||||
26 | proceeding against
that person for
possession under Article 9 |
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1 | of this Code or subsection (h) of Section 15-1701;
and | ||||||
2 | possession against a person
who (1) has not been personally | ||||||
3 | named as a party to the
foreclosure and (2) has not been | ||||||
4 | provided an opportunity to be heard in the
foreclosure | ||||||
5 | proceeding may be sought only by maintaining a
proceeding under | ||||||
6 | Article 9 of this
Code or subsection (h) of Section 15-1701. | ||||||
7 | (Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09; | ||||||
8 | 96-856, eff. 3-1-10.)
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
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