Sen. Jacqueline Y. Collins

Filed: 4/16/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1602

2    AMENDMENT NO. ______. Amend Senate Bill 1602 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Sections 9-121, 9-205, 9-207, 15-1202.5, 15-1506,
615-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704 and by adding
7Section 9-207.5 as follows:
 
8    (735 ILCS 5/9-121)
9    Sec. 9-121. Sealing of court file.
10    (a) Definition. As used in this Section, "court file" means
11the court file created when a forcible entry and detainer
12action is filed with the court.
13    (b) Discretionary sealing of court file. The court may
14order that a court file in a forcible entry and detainer action
15be placed under seal if the court finds that the plaintiff's
16action is sufficiently without a basis in fact or law, which

 

 

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1may include a lack of jurisdiction, that placing the court file
2under seal is clearly in the interests of justice, and that
3those interests are not outweighed by the public's interest in
4knowing about the record.
5    (c) Mandatory sealing of court file. The court file
6relating to a forcible entry and detainer action brought
7against a tenant under Section 9-207.5 of this Code or as set
8forth in subdivision (h)(5) of Section 15-1701 of this Code
9shall be placed under seal who would have lawful possession of
10the premises but for the foreclosure on the property shall be
11sealed pursuant to Section 15-1701.
12(Source: P.A. 96-1131, eff. 7-20-10.)
 
13    (735 ILCS 5/9-205)  (from Ch. 110, par. 9-205)
14    Sec. 9-205. Notice to terminate tenancy from year to year.
15Except as provided in Section 9-206 and Section 9-207.5 of this
16Act, in all cases of tenancy from year to year, 60 days'
17notice, in writing, shall be sufficient to terminate the
18tenancy at the end of the year. The notice may be given at any
19time within 4 months preceding the last 60 days of the year.
20(Source: P.A. 82-280.)
 
21    (735 ILCS 5/9-207)  (from Ch. 110, par. 9-207)
22    Sec. 9-207. Notice to terminate tenancy for less than a
23year.
24    (a) Except as provided in Section 9-207.5 of this Code, in

 

 

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1In all cases of tenancy from week to week, where the tenant
2holds over without special agreement, the landlord may
3terminate the tenancy by 7 days' notice, in writing, and may
4maintain an action for forcible entry and detainer or
5ejectment.
6    (b) Except as provided in Section 9-207.5 of this Code, in
7In all cases of tenancy for any term less than one year, other
8than tenancy from week to week, where the tenant holds over
9without special agreement, the landlord may terminate the
10tenancy by 30 days' notice, in writing, and may maintain an
11action for forcible entry and detainer or ejectment.
12(Source: P.A. 82-280.)
 
13    (735 ILCS 5/9-207.5 new)
14    Sec. 9-207.5. Termination of tenancies after foreclosure.
15    (a) A landlord who assumes control of the premises as a
16result of a foreclosure pursuant to Article XV of this Code may
17terminate a tenancy established prior to the confirmation of
18sale under Section 15-1508 of this Code only (i) at the end of
19the term of the lease agreement by no less than 90 days'
20written notice; or (ii) in the case of a month to month or week
21to week tenancy, by 90 days' written notice. Nothing in this
22Section shall abrogate the rights of a landlord to terminate a
23tenancy under Sections 9-118, 9-119, 9-120, 9-209, or 9-210 of
24this Code.
25    (b) Notwithstanding the provisions of subsection (a) of

 

 

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1this Section, a landlord who assumes control of the premises as
2a result of a foreclosure pursuant to Article XV of this Code
3and will occupy the unit as his or her primary residence may
4terminate a tenancy established prior to the confirmation of
5sale under Section 15-1508 of Article XV of this Code under
6Section 9-205 and 9-207 of this Code, subject to the terms of
7any lease agreement.
 
8    (735 ILCS 5/15-1202.5)
9    Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
1015-1506, 15-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704
11only, "dwelling unit" means a room or suite of rooms providing
12complete, independent living facilities for at least one
13person, including permanent provisions for sanitation,
14cooking, eating, sleeping, and other activities routinely
15associated with daily life.
16(Source: P.A. 96-111, eff. 10-29-09; 97-575, eff. 8-26-11.)
 
17    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
18    Sec. 15-1506. Judgment.
19    (a) Evidence. In the trial of a foreclosure, the evidence
20to support the allegations of the complaint shall be taken in
21open court, except:
22        (1) where an allegation of fact in the complaint is not
23    denied by a party's verified answer or verified
24    counterclaim, or where a party pursuant to subsection (b)

 

 

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1    of Section 2-610 of the Code of Civil Procedure states, or
2    is deemed to have stated, in its pleading that it has no
3    knowledge of such allegation sufficient to form a belief
4    and attaches the required affidavit, a sworn verification
5    of the complaint or a separate affidavit setting forth such
6    fact is sufficient evidence thereof against such party and
7    no further evidence of such fact shall be required; and
8        (2) where all the allegations of fact in the complaint
9    have been proved by verification of the complaint or
10    affidavit, the court upon motion supported by an affidavit
11    stating the amount which is due the mortgagee, shall enter
12    a judgment of foreclosure as requested in the complaint.
13    (b) Instruments. In all cases the evidence of the
14indebtedness and the mortgage foreclosed shall be exhibited to
15the court and appropriately marked, and copies thereof shall be
16filed with the court.
17    (c) Summary and Default Judgments. Nothing in this Section
1815-1506 shall prevent a party from obtaining a summary or
19default judgment authorized by Article II of the Code of Civil
20Procedure.
21    (d) Notice of Entry of Default. When any judgment in a
22foreclosure is entered by default, notice of such judgment
23shall be given in accordance with Section 2-1302 of the Code of
24Civil Procedure.
25    (e) Matters Required in Judgment. A judgment of foreclosure
26shall include the last date for redemption and all rulings of

 

 

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1the court entered with respect to each request for relief set
2forth in the complaint. The omission of the date for redemption
3shall not extend the time for redemption or impair the validity
4of the judgment.
5    (f) Special Matters in Judgment. Without limiting the
6general authority and powers of the court, special matters may
7be included in the judgment of foreclosure if sought by a party
8in the complaint or by separate motion. Such matters may
9include, without limitation:
10        (1) a manner of sale other than public auction;
11        (2) a sale by sealed bid;
12        (3) an official or other person who shall be the
13    officer to conduct the sale other than the one customarily
14    designated by the court;
15        (4) provisions for non-exclusive broker listings or
16    designating a duly licensed real estate broker nominated by
17    one of the parties to exclusively list the real estate for
18    sale;
19        (5) the fees or commissions to be paid out of the sale
20    proceeds to the listing or other duly licensed broker, if
21    any, who shall have procured the accepted bid;
22        (6) the fees to be paid out of the sale proceeds to an
23    auctioneer, if any, who shall have been authorized to
24    conduct a public auction sale;
25        (7) whether and in what manner and with what content
26    signs shall be posted on the real estate;

 

 

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1        (8) a particular time and place at which such bids
2    shall be received;
3        (9) a particular newspaper or newspapers in which
4    notice of sale shall be published;
5        (10) the format for the advertising of such sale,
6    including the size, content and format of such advertising,
7    and additional advertising of such sale;
8        (11) matters or exceptions to which title in the real
9    estate may be subject at the sale;
10        (12) a requirement that title insurance in a specified
11    form be provided to a purchaser at the sale, and who shall
12    pay for such insurance;
13        (13) whether and to what extent bids with mortgage or
14    other contingencies will be allowed;
15        (14) such other matters as approved by the court to
16    ensure sale of the real estate for the most commercially
17    favorable price for the type of real estate involved.
18    (g) Agreement of the Parties. If all of the parties agree
19in writing on the minimum price and that the real estate may be
20sold to the first person who offers in writing to purchase the
21real estate for such price, and on such other commercially
22reasonable terms and conditions as the parties may agree, then
23the court shall order the real estate to be sold on such terms,
24subject to confirmation of the sale in accordance with Section
2515-1508.
26    (h) Postponement of Proving Priority. With the approval of

 

 

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1the court prior to the entry of the judgment of foreclosure, a
2party claiming an interest in the proceeds of the sale of the
3mortgaged real estate may defer proving the priority of such
4interest until the hearing to confirm the sale.
5    (i) Effect of Judgment and Lien.
6        (1) Upon the entry of the judgment of foreclosure, all
7    rights of a party in the foreclosure against the mortgagor
8    provided for in the judgment of foreclosure or this Article
9    shall be secured by a lien on the mortgaged real estate,
10    which lien shall have the same priority as the claim to
11    which the judgment relates and shall be terminated upon
12    confirmation of a judicial sale in accordance with this
13    Article.
14        (2) Upon the entry of the judgment of foreclosure, the
15    rights in the real estate subject to the judgment of
16    foreclosure of (i) all persons made a party in the
17    foreclosure and (ii) all nonrecord claimants given notice
18    in accordance with paragraph (2) of subsection (c) of
19    Section 15-1502, shall be solely as provided for in the
20    judgment of foreclosure and in this Article.
21        (3) Entry of a judgment of foreclosure does not
22    terminate or otherwise affect the rights or interest of any
23    occupant of a dwelling unit who has a lease or tenancy
24    resulting from an arm's length transaction and who is not
25    the mortgagor, whether or not the occupant has been made a
26    party in the foreclosure.

 

 

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1(Source: P.A. 85-907.)
 
2    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
3    (Text of Section before amendment by P.A. 97-1164)
4    Sec. 15-1508. Report of Sale and Confirmation of Sale.
5    (a) Report. The person conducting the sale shall promptly
6make a report to the court, which report shall include a copy
7of all receipts and, if any, certificate of sale.
8    (b) Hearing. Upon motion and notice in accordance with
9court rules applicable to motions generally, which motion shall
10not be made prior to sale, the court shall conduct a hearing to
11confirm the sale. Unless the court finds that (i) a notice
12required in accordance with subsection (c) of Section 15-1507
13was not given, (ii) the terms of sale were unconscionable,
14(iii) the sale was conducted fraudulently, or (iv) justice was
15otherwise not done, the court shall then enter an order
16confirming the sale. The confirmation order shall include a
17name, address, and telephone number of the holder of the
18certificate of sale or deed issued pursuant to that certificate
19or, if no certificate or deed was issued, the purchaser, whom a
20municipality or county may contact with concerns about the real
21estate. The confirmation order may also:
22        (1) approve the mortgagee's fees and costs arising
23    between the entry of the judgment of foreclosure and the
24    confirmation hearing, those costs and fees to be allowable
25    to the same extent as provided in the note and mortgage and

 

 

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1    in Section 15-1504;
2        (2) provide for a personal judgment against any party
3    for a deficiency; and
4        (3) determine the priority of the judgments of parties
5    who deferred proving the priority pursuant to subsection
6    (h) of Section 15-1506, but the court shall not defer
7    confirming the sale pending the determination of such
8    priority.
9    (b-5) Notice with respect to residential real estate. With
10respect to residential real estate, the notice required under
11subsection (b) of this Section shall be sent to the mortgagor
12even if the mortgagor has previously been held in default. In
13the event the mortgagor has filed an appearance, the notice
14shall be sent to the address indicated on the appearance. In
15all other cases, the notice shall be sent to the mortgagor at
16the common address of the foreclosed property. The notice shall
17be sent by first class mail. Unless the right to possession has
18been previously terminated by the court, the notice shall
19include the following language in 12-point boldface
20capitalized type:
21
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
22
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
23
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
24
ILLINOIS MORTGAGE FORECLOSURE LAW.
25    (b-10) Notice of confirmation order sent to municipality or
26county. A copy of the confirmation order required under

 

 

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1subsection (b) shall be sent to the municipality in which the
2foreclosed property is located, or to the county within the
3boundary of which the foreclosed property is located if the
4foreclosed property is located in an unincorporated territory.
5A municipality or county must clearly publish on its website a
6single address to which such notice shall be sent. If a
7municipality or county does not maintain a website, then the
8municipality or county must publicly post in its main office a
9single address to which such notice shall be sent. In the event
10that a municipality or county has not complied with the
11publication requirement in this subsection (b-10), then such
12notice to the municipality or county shall be provided pursuant
13to Section 2-211 of the Code of Civil Procedure.
14    (c) Failure to Give Notice. If any sale is held without
15compliance with subsection (c) of Section 15-1507 of this
16Article, any party entitled to the notice provided for in
17paragraph (3) of that subsection (c) who was not so notified
18may, by motion supported by affidavit made prior to
19confirmation of such sale, ask the court which entered the
20judgment to set aside the sale. Any such party shall guarantee
21or secure by bond a bid equal to the successful bid at the
22prior sale, unless the party seeking to set aside the sale is
23the mortgagor, the real estate sold at the sale is residential
24real estate, and the mortgagor occupies the residential real
25estate at the time the motion is filed. In that event, no
26guarantee or bond shall be required of the mortgagor. Any

 

 

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1subsequent sale is subject to the same notice requirement as
2the original sale.
3    (d) Validity of Sale. Except as provided in subsection (c)
4of Section 15-1508, no sale under this Article shall be held
5invalid or be set aside because of any defect in the notice
6thereof or in the publication of the same, or in the
7proceedings of the officer conducting the sale, except upon
8good cause shown in a hearing pursuant to subsection (b) of
9Section 15-1508. At any time after a sale has occurred, any
10party entitled to notice under paragraph (3) of subsection (c)
11of Section 15-1507 may recover from the mortgagee any damages
12caused by the mortgagee's failure to comply with such paragraph
13(3). Any party who recovers damages in a judicial proceeding
14brought under this subsection may also recover from the
15mortgagee the reasonable expenses of litigation, including
16reasonable attorney's fees.
17    (d-5) Making Home Affordable Program. The court that
18entered the judgment shall set aside a sale held pursuant to
19Section 15-1507, upon motion of the mortgagor at any time prior
20to the confirmation of the sale, if the mortgagor proves by a
21preponderance of the evidence that (i) the mortgagor has
22applied for assistance under the Making Home Affordable Program
23established by the United States Department of the Treasury
24pursuant to the Emergency Economic Stabilization Act of 2008,
25as amended by the American Recovery and Reinvestment Act of
262009, and (ii) the mortgaged real estate was sold in material

 

 

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1violation of the program's requirements for proceeding to a
2judicial sale. The provisions of this subsection (d-5), except
3for this sentence, shall become inoperative on January 1, 2014
4for all actions filed under this Article after December 31,
52013, in which the mortgagor did not apply for assistance under
6the Making Home Affordable Program on or before December 31,
72013.
8    (e) Deficiency Judgment. In any order confirming a sale
9pursuant to the judgment of foreclosure, the court shall also
10enter a personal judgment for deficiency against any party (i)
11if otherwise authorized and (ii) to the extent requested in the
12complaint and proven upon presentation of the report of sale in
13accordance with Section 15-1508. Except as otherwise provided
14in this Article, a judgment may be entered for any balance of
15money that may be found due to the plaintiff, over and above
16the proceeds of the sale or sales, and enforcement may be had
17for the collection of such balance, the same as when the
18judgment is solely for the payment of money. Such judgment may
19be entered, or enforcement had, only in cases where personal
20service has been had upon the persons personally liable for the
21mortgage indebtedness, unless they have entered their
22appearance in the foreclosure action.
23    (f) Satisfaction. Upon confirmation of the sale, the
24judgment stands satisfied to the extent of the sale price less
25expenses and costs. If the order confirming the sale includes a
26deficiency judgment, the judgment shall become a lien in the

 

 

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1manner of any other judgment for the payment of money.
2    (g) The order confirming the sale shall include,
3notwithstanding any previous orders awarding possession during
4the pendency of the foreclosure, an award to the purchaser of
5possession of the mortgaged real estate, as of the date 30 days
6after the entry of the order, against the parties to the
7foreclosure whose interests have been terminated.
8    An order of possession authorizing the removal of a person
9from possession of the mortgaged real estate shall be entered
10and enforced only against those persons personally named as
11individuals in the complaint or the petition under subsection
12(h) of Section 15-1701. However, no order of possession issued
13under this Section shall be entered against an occupant of a
14dwelling unit of the mortgaged real estate who has been
15personally named in the foreclosure if that occupant is not the
16mortgagor and has a lease or tenancy resulting from an arm's
17length transaction. An and in the order of possession and shall
18not be entered and enforced against any person who is only
19generically described as an unknown owner or nonrecord claimant
20or by another generic designation in the complaint.
21    Notwithstanding the preceding paragraph, the failure to
22personally name, include, or seek an award of possession of the
23mortgaged real estate against a person in the confirmation
24order shall not abrogate any right that the purchaser may have
25to possession of the mortgaged real estate and to maintain a
26proceeding against that person for possession under Article IX

 

 

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19 of this Code or, if applicable, under subsection (h) of
2Section 15-1701; and possession against a person who (1) has
3not been personally named as a party to the foreclosure and (2)
4has not been provided an opportunity to be heard in the
5foreclosure proceeding may be sought only by maintaining a
6proceeding under Article IX 9 of this Code or, if applicable,
7under subsection (h) of Section 15-1701.
8    (h) With respect to mortgaged real estate containing 5 or
9more dwelling units, the order confirming the sale shall also
10provide that (i) the mortgagor shall transfer to the purchaser
11the security deposits, if any, that the mortgagor received to
12secure payment of rent or to compensate for damage to the
13mortgaged real estate from any current occupant of a dwelling
14unit of the mortgaged real estate, as well as any statutory
15interest that has not been paid to the occupant, and (ii) the
16mortgagor shall provide an accounting of the security deposits
17that are transferred, including the name and address of each
18occupant for whom the mortgagor holds the deposit and the
19amount of the deposit and any statutory interest.
20(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
2196-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
228-26-11; 97-1159, eff. 1-29-13.)
 
23    (Text of Section after amendment by P.A. 97-1164)
24    Sec. 15-1508. Report of Sale and Confirmation of Sale.
25    (a) Report. The person conducting the sale shall promptly

 

 

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1make a report to the court, which report shall include a copy
2of all receipts and, if any, certificate of sale.
3    (b) Hearing. Upon motion and notice in accordance with
4court rules applicable to motions generally, which motion shall
5not be made prior to sale, the court shall conduct a hearing to
6confirm the sale. Unless the court finds that (i) a notice
7required in accordance with subsection (c) of Section 15-1507
8was not given, (ii) the terms of sale were unconscionable,
9(iii) the sale was conducted fraudulently, or (iv) justice was
10otherwise not done, the court shall then enter an order
11confirming the sale. The confirmation order shall include a
12name, address, and telephone number of the holder of the
13certificate of sale or deed issued pursuant to that certificate
14or, if no certificate or deed was issued, the purchaser, whom a
15municipality or county may contact with concerns about the real
16estate. The confirmation order may also:
17        (1) approve the mortgagee's fees and costs arising
18    between the entry of the judgment of foreclosure and the
19    confirmation hearing, those costs and fees to be allowable
20    to the same extent as provided in the note and mortgage and
21    in Section 15-1504;
22        (2) provide for a personal judgment against any party
23    for a deficiency; and
24        (3) determine the priority of the judgments of parties
25    who deferred proving the priority pursuant to subsection
26    (h) of Section 15-1506, but the court shall not defer

 

 

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1    confirming the sale pending the determination of such
2    priority.
3    (b-3) Hearing to confirm sale of abandoned residential
4property. Upon motion and notice by first-class mail to the
5last known address of the mortgagor, which motion shall be made
6prior to the sale and heard by the court at the earliest
7practicable time after conclusion of the sale, and upon the
8posting at the property address of the notice required by
9paragraph (2) of subsection (l) of Section 15-1505.8, the court
10shall enter an order confirming the sale of the abandoned
11residential property, unless the court finds that a reason set
12forth in items (i) through (iv) of subsection (b) of this
13Section exists for not approving the sale, or an order is
14entered pursuant to subsection (h) of Section 15-1505.8. The
15confirmation order also may address the matters identified in
16items (1) through (3) of subsection (b) of this Section. The
17notice required under subsection (b-5) of this Section shall
18not be required.
19    (b-5) Notice with respect to residential real estate. With
20respect to residential real estate, the notice required under
21subsection (b) of this Section shall be sent to the mortgagor
22even if the mortgagor has previously been held in default. In
23the event the mortgagor has filed an appearance, the notice
24shall be sent to the address indicated on the appearance. In
25all other cases, the notice shall be sent to the mortgagor at
26the common address of the foreclosed property. The notice shall

 

 

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1be sent by first class mail. Unless the right to possession has
2been previously terminated by the court, the notice shall
3include the following language in 12-point boldface
4capitalized type:
5
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
6
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
7
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
8
ILLINOIS MORTGAGE FORECLOSURE LAW.
9    (b-10) Notice of confirmation order sent to municipality or
10county. A copy of the confirmation order required under
11subsection (b) shall be sent to the municipality in which the
12foreclosed property is located, or to the county within the
13boundary of which the foreclosed property is located if the
14foreclosed property is located in an unincorporated territory.
15A municipality or county must clearly publish on its website a
16single address to which a copy of the order shall be sent. If a
17municipality or county does not maintain a website, then the
18municipality or county must publicly post in its main office a
19single address to which a copy of the order shall be sent. In
20the event that a municipality or county has not complied with
21the publication requirement in this subsection (b-10), then a
22copy of the order shall be sent by first class mail, postage
23prepaid, to the chairperson of the county board or county clerk
24in the case of a county, to the mayor or city clerk in the case
25of a city, to the president of the board of trustees or village
26clerk in the case of a village, or to the president or town

 

 

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1clerk in the case of a town.
2    (b-15) Notice of confirmation order sent to known insurers.
3With respect to residential real estate, the party filing the
4complaint shall send a copy of the confirmation order required
5under subsection (b) by first class mail, postage prepaid, to
6the last known property insurer of the foreclosed property.
7Failure to send or receive a copy of the order shall not impair
8or abrogate in any way the rights of the mortgagee or purchaser
9or affect the status of the foreclosure proceedings.
10    (c) Failure to Give Notice. If any sale is held without
11compliance with subsection (c) of Section 15-1507 of this
12Article, any party entitled to the notice provided for in
13paragraph (3) of that subsection (c) who was not so notified
14may, by motion supported by affidavit made prior to
15confirmation of such sale, ask the court which entered the
16judgment to set aside the sale. Any such party shall guarantee
17or secure by bond a bid equal to the successful bid at the
18prior sale, unless the party seeking to set aside the sale is
19the mortgagor, the real estate sold at the sale is residential
20real estate, and the mortgagor occupies the residential real
21estate at the time the motion is filed. In that event, no
22guarantee or bond shall be required of the mortgagor. Any
23subsequent sale is subject to the same notice requirement as
24the original sale.
25    (d) Validity of Sale. Except as provided in subsection (c)
26of Section 15-1508, no sale under this Article shall be held

 

 

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1invalid or be set aside because of any defect in the notice
2thereof or in the publication of the same, or in the
3proceedings of the officer conducting the sale, except upon
4good cause shown in a hearing pursuant to subsection (b) of
5Section 15-1508. At any time after a sale has occurred, any
6party entitled to notice under paragraph (3) of subsection (c)
7of Section 15-1507 may recover from the mortgagee any damages
8caused by the mortgagee's failure to comply with such paragraph
9(3). Any party who recovers damages in a judicial proceeding
10brought under this subsection may also recover from the
11mortgagee the reasonable expenses of litigation, including
12reasonable attorney's fees.
13    (d-5) Making Home Affordable Program. The court that
14entered the judgment shall set aside a sale held pursuant to
15Section 15-1507, upon motion of the mortgagor at any time prior
16to the confirmation of the sale, if the mortgagor proves by a
17preponderance of the evidence that (i) the mortgagor has
18applied for assistance under the Making Home Affordable Program
19established by the United States Department of the Treasury
20pursuant to the Emergency Economic Stabilization Act of 2008,
21as amended by the American Recovery and Reinvestment Act of
222009, and (ii) the mortgaged real estate was sold in material
23violation of the program's requirements for proceeding to a
24judicial sale. The provisions of this subsection (d-5), except
25for this sentence, shall become inoperative on January 1, 2014
26for all actions filed under this Article after December 31,

 

 

09800SB1602sam002- 21 -LRB098 09678 HEP 44569 a

12013, in which the mortgagor did not apply for assistance under
2the Making Home Affordable Program on or before December 31,
32013.
4    (e) Deficiency Judgment. In any order confirming a sale
5pursuant to the judgment of foreclosure, the court shall also
6enter a personal judgment for deficiency against any party (i)
7if otherwise authorized and (ii) to the extent requested in the
8complaint and proven upon presentation of the report of sale in
9accordance with Section 15-1508. Except as otherwise provided
10in this Article, a judgment may be entered for any balance of
11money that may be found due to the plaintiff, over and above
12the proceeds of the sale or sales, and enforcement may be had
13for the collection of such balance, the same as when the
14judgment is solely for the payment of money. Such judgment may
15be entered, or enforcement had, only in cases where personal
16service has been had upon the persons personally liable for the
17mortgage indebtedness, unless they have entered their
18appearance in the foreclosure action.
19    (f) Satisfaction. Upon confirmation of the sale, the
20judgment stands satisfied to the extent of the sale price less
21expenses and costs. If the order confirming the sale includes a
22deficiency judgment, the judgment shall become a lien in the
23manner of any other judgment for the payment of money.
24    (g) The order confirming the sale shall include,
25notwithstanding any previous orders awarding possession during
26the pendency of the foreclosure, an award to the purchaser of

 

 

09800SB1602sam002- 22 -LRB098 09678 HEP 44569 a

1possession of the mortgaged real estate, as of the date 30 days
2after the entry of the order, against the parties to the
3foreclosure whose interests have been terminated.
4    An order of possession authorizing the removal of a person
5from possession of the mortgaged real estate shall be entered
6and enforced only against those persons personally named as
7individuals in the complaint or the petition under subsection
8(h) of Section 15-1701. However, no order of possession issued
9under this Section shall be entered against an occupant of a
10dwelling unit of the mortgaged real estate who has been
11personally named in the foreclosure if that occupant is not the
12mortgagor and has a lease or tenancy resulting from an arm's
13length transaction. An and in the order of possession and shall
14not be entered and enforced against any person who is only
15generically described as an unknown owner or nonrecord claimant
16or by another generic designation in the complaint.
17    Notwithstanding the preceding paragraph, the failure to
18personally name, include, or seek an award of possession of the
19mortgaged real estate against a person in the confirmation
20order shall not abrogate any right that the purchaser may have
21to possession of the mortgaged real estate and to maintain a
22proceeding against that person for possession under Article IX
239 of this Code or, if applicable, under subsection (h) of
24Section 15-1701; and possession against a person who (1) has
25not been personally named as a party to the foreclosure and (2)
26has not been provided an opportunity to be heard in the

 

 

09800SB1602sam002- 23 -LRB098 09678 HEP 44569 a

1foreclosure proceeding may be sought only by maintaining a
2proceeding under Article IX 9 of this Code or, if applicable,
3under subsection (h) of Section 15-1701.
4    (h) With respect to mortgaged real estate containing 5 or
5more dwelling units, the order confirming the sale shall also
6provide that (i) the mortgagor shall transfer to the purchaser
7the security deposits, if any, that the mortgagor received to
8secure payment of rent or to compensate for damage to the
9mortgaged real estate from any current occupant of a dwelling
10unit of the mortgaged real estate, as well as any statutory
11interest that has not been paid to the occupant, and (ii) the
12mortgagor shall provide an accounting of the security deposits
13that are transferred, including the name and address of each
14occupant for whom the mortgagor holds the deposit and the
15amount of the deposit and any statutory interest.
16(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
1796-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
188-26-11; 97-1159, eff. 1-29-13; 97-1164, eff. 6-1-13; revised
192-22-13.)
 
20    (735 ILCS 5/15-1508.5)
21    Sec. 15-1508.5. Notice by holder or purchaser to known
22occupants of dwelling units of mortgaged real estate.
23    (a) The holder of the certificate of sale or deed issued
24pursuant to that certificate or, if no certificate or deed was
25issued, the purchaser, shall:

 

 

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1        (1) following the judicial sale under Section 15-1507,
2    but no later than 21 days after the confirmation of sale
3    under Section 15-1508, make a good faith effort to
4    ascertain the identities and addresses of all occupants of
5    dwelling units of the mortgaged real estate; and
6        (2) following the order confirming sale under Section
7    15-1508, but no later than 21 days after the order
8    confirming sale, notify all known occupants of dwelling
9    units of the mortgaged real estate that the holder or
10    purchaser has acquired the mortgaged real estate. The
11    notice shall be in writing and shall:
12            (i) identify the occupant being served by the name
13        known to the holder or purchaser;
14            (ii) inform the occupant that the mortgaged real
15        estate at which the dwelling unit is located is the
16        subject of a foreclosure and that control of the
17        mortgaged real estate has changed;
18            (iii) provide the name, address, and telephone
19        number of an individual or entity whom the occupants
20        may contact with concerns about the mortgaged real
21        estate or to request repairs of that property;
22            (iv) include the following language, or language
23        that is substantially similar: "This is NOT a notice to
24        vacate the premises. You may wish to contact a lawyer
25        or your local legal aid or housing counseling agency to
26        discuss any rights that you may have."; and

 

 

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1            (v) include the name of the case, the case number,
2        and the court where the order confirming the sale has
3        been entered; and .
4            (vi) provide instructions on the method of payment
5        of future rent, if applicable.
6    (b) The written notice required by subsection (a) of this
7Section shall be served by delivering a copy thereof to the
8known occupant, or by leaving the same with some person of the
9age of 13 years or upwards who is residing on or in possession
10of the premises, or by sending a copy of the notice to the
11known occupant by first-class mail, addressed to the occupant
12by the name known to the holder or purchaser.
13    (c) In the event that the holder or purchaser ascertains
14the identity and address of an occupant of a dwelling unit of
15the mortgaged real estate more than 21 days after the
16confirmation of sale under Section 15-1508, the holder or
17purchaser shall provide the notice required by subparagraph (2)
18of subsection (a) within 7 days of ascertaining the identity
19and address of the occupant.
20    (d)(i) A holder or purchaser who fails to comply with
21subsections (a), (b), and (c) may not collect any rent due and
22owing from a known occupant, or terminate a known occupant's
23tenancy for non-payment of such rent, until the holder or
24purchaser has served the notice described in paragraph (2) of
25subsection (a) of this Section upon the known occupant. After
26providing such notice, the holder or purchaser may collect any

 

 

09800SB1602sam002- 26 -LRB098 09678 HEP 44569 a

1and all rent accruing after service of the notice otherwise due
2and owing the holder or purchaser from the known occupant and
3may terminate the known occupant's tenancy for non-payment of
4such rent if the holder or purchaser otherwise has such right
5to terminate.
6    (ii) An occupant who previously paid rent for the current
7rental period to the mortgagor, or other entity with the
8authority to operate, manage, and conserve the mortgaged real
9estate at the time of payment, shall not be held liable for
10that rent by the holder or purchaser, and the occupant's
11tenancy shall not be terminated for non-payment of rent for
12that rental period.
13    (e) Within 21 days of the confirmation of sale under
14Section 15-1508, the holder or purchaser shall post a written
15notice on the primary entrance of each dwelling unit subject to
16the foreclosure action. This notice shall:
17        (i) inform occupant that the dwelling unit is the
18    subject of a foreclosure action and that control of the
19    mortgaged real estate has changed;
20        (ii) include the following language: "This is NOT a
21    notice to vacate the premises."; and
22        (iii) provide the name, address, and telephone number
23    of the individual or entity whom occupants may contact with
24    concerns about the mortgaged real estate or to request
25    repairs of the property; and .
26        (iv) provide instructions on the method of payment of

 

 

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1    future rent, if applicable.
2    (f)(i) The provisions of subsection (d) of this Section
3shall be the exclusive remedy for the failure of a holder or
4purchaser to provide notice to a known occupant under this
5Section.
6    (ii) This Section shall not abrogate any right that a
7holder or purchaser may have to possession of the mortgaged
8real estate and to maintain a proceeding against an occupant of
9a dwelling unit for possession under Article IX 9 of this Code
10or subsection (h) of Section 15-1701.
11    (iii) In the event that the holder or purchaser is a
12mortgagee in possession of the mortgaged real estate pursuant
13to Section 15-1703 at the time of the confirmation of sale and
14has complied with requirements of subsection (a-5) of Section
1515-1703, the holder or purchaser is excused from the
16requirements of subsections (a) and (e) of this Section.
17    (iv) A holder or purchaser is not required to provide the
18notice required by this Section to a mortgagor or party against
19whom an order of possession has been entered authorizing the
20removal of the mortgagor or party pursuant to subsection (g) of
21Section 15-1508.
22(Source: P.A. 96-111, eff. 10-29-09.)
 
23    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
24    Sec. 15-1701. Right to possession.
25    (a) General. The provisions of this Article shall govern

 

 

09800SB1602sam002- 28 -LRB098 09678 HEP 44569 a

1the right to possession of the mortgaged real estate during
2foreclosure. Possession under this Article includes physical
3possession of the mortgaged real estate to the same extent to
4which the mortgagor, absent the foreclosure, would have been
5entitled to physical possession. For the purposes of Part 17,
6real estate is residential real estate only if it is
7residential real estate at the time the foreclosure is
8commenced.
9    (b) Pre-Judgment. Prior to the entry of a judgment of
10foreclosure:
11        (1) In the case of residential real estate, the
12    mortgagor shall be entitled to possession of the real
13    estate except if (i) the mortgagee shall object and show
14    good cause, (ii) the mortgagee is so authorized by the
15    terms of the mortgage or other written instrument, and
16    (iii) the court is satisfied that there is a reasonable
17    probability that the mortgagee will prevail on a final
18    hearing of the cause, the court shall upon request place
19    the mortgagee in possession. If the residential real estate
20    consists of more than one dwelling unit, then for the
21    purpose of this Part residential real estate shall mean
22    only that dwelling unit or units occupied by persons
23    described in clauses (i), (ii) and (iii) of Section
24    15-1219.
25        (2) In all other cases, if (i) the mortgagee is so
26    authorized by the terms of the mortgage or other written

 

 

09800SB1602sam002- 29 -LRB098 09678 HEP 44569 a

1    instrument, and (ii) the court is satisfied that there is a
2    reasonable probability that the mortgagee will prevail on a
3    final hearing of the cause, the mortgagee shall upon
4    request be placed in possession of the real estate, except
5    that if the mortgagor shall object and show good cause, the
6    court shall allow the mortgagor to remain in possession.
7    (c) Judgment Through 30 Days After Sale Confirmation. After
8the entry of a judgment of foreclosure and through the 30th day
9after a foreclosure sale is confirmed:
10        (1) Subsection (b) of Section 15-1701 shall be
11    applicable, regardless of the provisions of the mortgage or
12    other instrument, except that after a sale pursuant to the
13    judgment the holder of the certificate of sale (or, if
14    none, the purchaser at the sale) shall have the mortgagee's
15    right to be placed in possession, with all rights and
16    duties of a mortgagee in possession under this Article.
17        (2) Notwithstanding paragraph (1) of subsection (b)
18    and paragraph (1) of subsection (c) of Section 15-1701,
19    upon request of the mortgagee, a mortgagor of residential
20    real estate shall not be allowed to remain in possession
21    between the expiration of the redemption period and through
22    the 30th day after sale confirmation unless (i) the
23    mortgagor pays to the mortgagee or such holder or
24    purchaser, whichever is applicable, monthly the lesser of
25    the interest due under the mortgage calculated at the
26    mortgage rate of interest applicable as if no default had

 

 

09800SB1602sam002- 30 -LRB098 09678 HEP 44569 a

1    occurred or the fair rental value of the real estate, or
2    (ii) the mortgagor otherwise shows good cause. Any amounts
3    paid by the mortgagor pursuant to this subsection shall be
4    credited against the amounts due from the mortgagor.
5    (d) After 30 Days After Sale Confirmation. The holder of
6the certificate of sale or deed issued pursuant to that
7certificate or, if no certificate or deed was issued, the
8purchaser, except to the extent the holder or purchaser may
9consent otherwise, shall be entitled to possession of the
10mortgaged real estate, as of the date 30 days after the order
11confirming the sale is entered, against those parties to the
12foreclosure whose interests the court has ordered terminated,
13without further notice to any party, further order of the
14court, or resort to proceedings under any other statute other
15than this Article. This right to possession shall be limited by
16the provisions governing entering and enforcing orders of
17possession under subsection (g) of Section 15-1508. If the
18holder or purchaser determines that there are occupants of the
19mortgaged real estate who have not been made parties to the
20foreclosure and had their interests terminated therein, the
21holder or purchaser may bring a proceeding under subsection (h)
22of this Section, if applicable, or under Article IX 9 of this
23Code to terminate the rights of possession of any such
24occupants. The holder or purchaser shall not be entitled to
25proceed against any such occupant under Article IX 9 of this
26Code until after 30 days after the order confirming the sale is

 

 

09800SB1602sam002- 31 -LRB098 09678 HEP 44569 a

1entered.
2    (e) Termination of Leases. A lease of all or any part of
3the mortgaged real estate shall not be terminated automatically
4solely by virtue of the entry into possession by (i) a
5mortgagee or receiver prior to the entry of an order confirming
6the sale, (ii) the holder of the certificate of sale, (iii) the
7holder of the deed issued pursuant to that certificate, or (iv)
8if no certificate or deed was issued, the purchaser at the
9sale.
10    (f) Other Statutes; Instruments. The provisions of this
11Article providing for possession of mortgaged real estate shall
12supersede any other inconsistent statutory provisions. In
13particular, and without limitation, whenever a receiver is
14sought to be appointed in any action in which a foreclosure is
15also pending, a receiver shall be appointed only in accordance
16with this Article. Except as may be authorized by this Article,
17no mortgage or other instrument may modify or supersede the
18provisions of this Article.
19    (g) Certain Leases. Leases of the mortgaged real estate
20entered into by a mortgagee in possession or a receiver and
21approved by the court in a foreclosure shall be binding on all
22parties, including the mortgagor after redemption, the
23purchaser at a sale pursuant to a judgment of foreclosure and
24any person acquiring an interest in the mortgaged real estate
25after entry of a judgment of foreclosure in accordance with
26Sections 15-1402 and 15-1403.

 

 

09800SB1602sam002- 32 -LRB098 09678 HEP 44569 a

1    (h) Proceedings Against Certain Occupants.
2        (1) The mortgagee-in-possession of the mortgaged real
3    estate under Section 15-1703, a receiver appointed under
4    Section 15-1704, a holder of the certificate of sale or
5    deed, or the purchaser may, at any time during the pendency
6    of the foreclosure and up to 90 days after the date of the
7    order confirming the sale, file a supplemental petition for
8    possession against a person not personally named as a party
9    to the foreclosure. The supplemental petition for
10    possession shall name each such occupant against whom
11    possession is sought and state the facts upon which the
12    claim for relief is premised. This subsection (h) does not
13    apply to any occupant of a dwelling unit of the mortgaged
14    real estate who has a lease or tenancy resulting from an
15    arm's length transaction and who is not the mortgagor.
16        (2) The petitioner shall serve upon each named occupant
17    the petition, a notice of hearing on the petition, and, if
18    any, a copy of the certificate of sale or deed. The
19    proceeding for the termination of such occupant's
20    possessory interest, including service of the notice of the
21    hearing and the petition, shall in all respects comport
22    with the requirements of Article IX 9 of this Code, except
23    as otherwise specified in this Section. The hearing shall
24    be no less than 21 days from the date of service of the
25    notice.
26        (3) The supplemental petition shall be heard as part of

 

 

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1    the foreclosure proceeding and without the payment of
2    additional filing fees. An order for possession obtained
3    under this Section shall name each occupant whose interest
4    has been terminated, shall recite that it is only effective
5    as to the occupant so named and those holding under them,
6    and shall be enforceable for no more than 120 days after
7    its entry, except that the 120-day period may be extended
8    to the extent and in the manner provided in Section 9-117
9    of Article IX 9 and except as provided in item (4) of this
10    subsection (h).
11        (4) In a case of foreclosure where the occupant is
12    current on his or her rent, or where timely written notice
13    of to whom and where the rent is to be paid has not been
14    provided to the occupant, or where the occupant has made
15    good-faith efforts to make rental payments in order to keep
16    current, any order of possession must allow the occupant to
17    retain possession of the property covered in his or her
18    rental agreement (i) for 120 days following the notice of
19    the hearing on the supplemental petition that has been
20    properly served upon the occupant, or (ii) through the
21    duration of his or her lease, whichever is shorter,
22    provided that if the duration of his or her lease is less
23    than 30 days from the date of the order, the order shall
24    allow the occupant to retain possession for 30 days from
25    the date of the order. A mortgagee in possession, receiver,
26    holder of a certificate of sale or deed, or purchaser at

 

 

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1    the judicial sale, who asserts that the occupant is not
2    current in rent, shall file an affidavit to that effect in
3    the supplemental petition proceeding. If the occupant has
4    been given timely written notice of to whom and where the
5    rent is to be paid, this item (4) shall only apply if the
6    occupant continues to pay his or her rent in full during
7    the 120-day period or has made good-faith efforts to pay
8    the rent in full during that period. No
9    mortgagee-in-possession, receiver or holder of a
10    certificate of sale or deed, or purchaser who fails to file
11    a supplemental petition under this subsection during the
12    pendency of a mortgage foreclosure shall file a forcible
13    entry and detainer action against an occupant of the
14    mortgaged real estate until 90 days after a notice of
15    intent to file such action has been properly served upon
16    the occupant.
17        (5) The court records relating to a supplemental
18    petition for possession filed under this subsection (h)
19    against an occupant who is entitled to notice under item
20    (4) of this subsection (h), or relating to a forcible entry
21    and detainer action brought against an occupant who would
22    have lawful possession of the premises but for the
23    foreclosure of a mortgage on the property, shall be ordered
24    sealed and shall not be disclosed to any person, other than
25    a law enforcement officer or any other representative of a
26    governmental entity, except upon further order of the

 

 

09800SB1602sam002- 35 -LRB098 09678 HEP 44569 a

1    court.
2    (i) Occupants of Dwelling Units.
3        (1) The holder of the certificate of sale, the holder
4    of the deed issued pursuant to that certificate, or if no
5    certificate or deed was issued, the purchaser at the sale
6    shall not terminate the lease or tenancy of any occupant of
7    a dwelling unit who has a lease or tenancy resulting from
8    an arm's length transaction entered into prior to the
9    confirmation of sale under Section 15-1508 of this Code and
10    who is not the mortgagor except pursuant to Article IX of
11    this Code.
12        (2) The holder of the certificate of sale, the holder
13    of the deed issued pursuant to that certificate, or if no
14    certificate or deed was issued, the purchaser at the sale
15    shall: (i) assume the lease or tenancy of the mortgaged
16    real estate resulting from an arm's length transaction
17    entered into prior to the confirmation of sale under
18    Section 15-1508 of this Code and who is not the mortgagor;
19    (ii) assume his or her interest in the mortgaged real
20    estate subject to the rights of any occupant; and (iii)
21    assume any federal, state, or local housing subsidy
22    contract for the dwelling unit for the duration of the
23    contract or the assumed lease, whichever is shorter.
24        (3) A receiver, mortgagee, or holder of the certificate
25    of sale, the holder of the deed issued pursuant to that
26    certificate, or if no certificate or deed was issued, the

 

 

09800SB1602sam002- 36 -LRB098 09678 HEP 44569 a

1    purchaser at the sale who offers any money or other
2    valuable consideration to an occupant of a dwelling unit as
3    an incentive to vacate the premises shall tender the offer
4    in writing along with a notice in the manner set forth in
5    paragraph (4) of this subsection (i). The offer shall not:
6    (i) require an occupant to vacate the premises earlier than
7    14 days after acceptance of the offer; (ii) require the
8    occupant to perform any other obligation that is not
9    already required under the law or any lease or tenancy in
10    existence prior to the offer; (iii) demand the waiver or
11    forfeiture of any other rights or remedies the occupant may
12    have under the law; or (iv) misrepresent the occupant's
13    right to continued possession of the dwelling unit.
14        (4) A notice accompanying an offer tendered under
15    paragraph (3) of this subsection shall be headed
16    "CASH-FOR-KEYS OFFER", shall be in at least 14-point type,
17    and shall be in substantially the following form: "THIS IS
18    AN OFFER FOR A MONETARY PAYMENT IN EXCHANGE FOR VACATING
19    THE PREMISES. THIS IS NOT A DEMAND TO VACATE, AND YOU DO
20    NOT HAVE TO ACCEPT THESE TERMS. You cannot be asked to
21    vacate sooner than 14 days from the date you accept any
22    offer, and you cannot be asked to do more than your lease
23    or tenancy already requires. If you choose not to accept
24    this offer, only a judge can end your lease or tenancy. You
25    may wish to contact a lawyer or your local legal aid agency
26    to discuss any rights that you may have.".

 

 

09800SB1602sam002- 37 -LRB098 09678 HEP 44569 a

1        (5) A person whose rights have been violated under this
2    subsection may bring an action seeking: (i) actual damages;
3    and (ii) reasonable attorney's fees and costs.
4        (6) This subsection does not apply to the mortgagor or
5    other person whose possessory interest in the property is
6    terminated under Section 15-1508 of this Article.
7(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60,
8eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
 
9    (735 ILCS 5/15-1703)  (from Ch. 110, par. 15-1703)
10    Sec. 15-1703. Mortgagee in Possession.
11    (a) Powers and Duties. A mortgagee placed in possession of
12the real estate pursuant to Section 15-1701 or Section 15-1702
13shall have:
14        (1) such power and authority with respect to the real
15    estate and other property subject to the mortgage,
16    including the right to receive the rents, issues and
17    profits thereof, as may have been conferred upon the
18    mortgagee by the terms of the mortgage or other written
19    instrument authorizing the taking of possession;
20        (2) all other rights and privileges of a mortgagee in
21    possession under law not inconsistent herewith; and
22        (3) the same powers, duties and liabilities as a
23    receiver appointed for the real estate in accordance with
24    this Article. If an order placing a mortgagee in possession
25    is modified, revoked or set aside, the mortgagee shall not

 

 

09800SB1602sam002- 38 -LRB098 09678 HEP 44569 a

1    be liable for any damages to the extent such damages arise
2    solely out of the fact that the mortgagor was removed from
3    possession or that the mortgagee was placed in possession.
4    (a-5) Notice to occupants.
5        (1) Following the order placing the mortgagee in
6    possession of the mortgaged real estate, but no later than
7    21 days after the entry of such order, the mortgagee in
8    possession shall make a good faith effort to ascertain the
9    identities and addresses of all occupants of dwelling units
10    of the mortgaged real estate.
11        (2) Following the order placing the mortgagee in
12    possession of the mortgaged real estate, but no later than
13    21 days after the entry of such order, the mortgagee in
14    possession shall notify all known occupants of dwelling
15    units of the mortgaged real estate that the mortgagee has
16    taken possession of the mortgaged real estate. The notice
17    shall be in writing and shall:
18            (i) identify the occupant being served by the name
19        known to the mortgagee in possession;
20            (ii) inform the occupant that the mortgaged real
21        estate at which the dwelling unit is located is the
22        subject of a foreclosure action and that control of the
23        mortgaged real estate has changed;
24            (iii) provide the name, address, and telephone
25        number of the individual or entity whom occupants may
26        contact with concerns about the mortgaged real estate

 

 

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1        or to request repairs of that property;
2            (iv) include the following language, or language
3        that is substantially similar: "This is NOT a notice to
4        vacate the premises. You may wish to contact a lawyer
5        or your local legal aid or housing counseling agency to
6        discuss any rights that you may have."; and
7            (v) include the name of the case, the case number,
8        and the court where the foreclosure action is pending;
9        and .
10            (vi) provide instructions on the method of payment
11        of future rent, if applicable.
12        (3) The written notice required by item (2) of this
13    subsection (a-5) shall be served by delivering a copy
14    thereof to the known occupant, or by leaving the same with
15    some person of the age of 13 years or upwards, who is
16    residing on or in possession of the premises; or by sending
17    a copy of the notice to the known occupant by first-class
18    mail, addressed to the occupant by the name known to the
19    mortgagee in possession.
20        (4) In the event that a mortgagee in possession
21    ascertains the identity and address of an occupant of a
22    dwelling unit of the mortgaged real estate more than 21
23    days after being placed in possession of the mortgaged real
24    estate pursuant to Section 15-1703, the mortgagee in
25    possession shall provide the notice required by item (2) of
26    this subsection (a-5) within 7 days of ascertaining the

 

 

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1    identity and address of the occupant.
2        (5)(i) A mortgagee in possession who fails to comply
3    with items (1), (2), (3), and (4) of this subsection (a-5)
4    may not collect any rent due and owing from a known
5    occupant, or terminate a known occupant's tenancy for
6    non-payment of such rent, until the mortgagee in possession
7    has served the notice described in item (2) of this
8    subsection (a-5) upon the known occupant. After providing
9    such notice, the mortgagee in possession may collect any
10    and all rent accruing after service of the notice otherwise
11    due and owing the mortgagee in possession from the known
12    occupant and may terminate the known occupant's tenancy for
13    non-payment of such rent if the mortgagee in possession
14    otherwise has such right to terminate.
15        (ii) An occupant who previously paid rent for the
16    current rental period to the mortgagor, or other entity
17    with the authority to operate, manage, and conserve the
18    mortgaged real estate at the time of payment, shall not be
19    held liable for that rent by the mortgagee in possession,
20    and the occupant's tenancy shall not be terminated for
21    non-payment of rent for that rental period.
22        (6) Within 21 days of the order placing the mortgagee
23    in possession of the mortgaged real estate, the mortgagee
24    in possession shall post a written notice on the primary
25    entrance of each dwelling unit subject to the foreclosure
26    action that informs the occupants that the mortgagee in

 

 

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1    possession is now operating and managing the mortgaged real
2    estate. This notice shall:
3            (i) inform occupant that the dwelling unit is the
4        subject of a foreclosure action and that control of the
5        mortgaged real estate has changed;
6            (ii) include the following language: "This is NOT a
7        notice to vacate the premises."; and
8            (iii) provide the name, address, and telephone
9        number of the individual or entity whom occupants may
10        contact with concerns about the mortgaged real estate
11        or to request repairs of the property; and .
12            (iv) provide instructions on the method of payment
13        of future rent, if applicable.
14        (7)(i) The provisions of item (5) of this subsection
15    (a-5) shall be the exclusive remedy for the failure of a
16    mortgagee in possession to provide notice to a known
17    occupant under this Section.
18        (ii) This Section shall not abrogate any right that a
19    mortgagee in possession may have to possession of the
20    mortgaged real estate and to maintain a proceeding against
21    an occupant of a dwelling unit for possession under Article
22    IX 9 of this Code or subsection (h) of Section 15-1701.
23    (b) Fees and Expenses. A mortgagee in possession shall not
24be entitled to any fees for so acting, but shall be entitled to
25reimbursement for reasonable costs, expenses and third party
26management fees incurred in connection with such possession.

 

 

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1(Source: P.A. 96-111, eff. 10-29-09.)
 
2    (735 ILCS 5/15-1704)  (from Ch. 110, par. 15-1704)
3    Sec. 15-1704. Receivers.
4    (a) Receiver. Notwithstanding the provisions of
5subsections (b), (c) and (d) of Section 15-1701, and except as
6provided in Section 15-1702, upon request of any party and a
7showing of good cause, the court shall appoint a receiver for
8the mortgaged real estate.
9    (b) Powers. A receiver appointed pursuant to this Article
10shall have possession of the mortgaged real estate and other
11property subject to the mortgage during the foreclosure, shall
12have full power and authority to operate, manage and conserve
13such property, and shall have all the usual powers of receivers
14in like cases. Without limiting the foregoing, a receiver shall
15have the power and authority to:
16        (1) secure tenants and execute leases for the real
17    estate, the duration and terms of which are reasonable and
18    customary for the type of use involved, and such leases
19    shall have the same priority as if made by the owner of the
20    real estate; but, unless approved by the Court, the
21    receiver shall not execute oil, gas or other mineral
22    leases, or (even if otherwise allowed by law) leases
23    extending beyond the time of the receiver's possession;
24    provided, however, with respect to residential real estate
25    leased by the receiver, nothing in this Section shall

 

 

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1    affect the legal rights of any lessee with respect to the
2    safety and habitability of the residential real estate;
3        (2) collect the rents, issues and profits from the
4    mortgaged real estate;
5        (3) insure the mortgaged real estate against loss by
6    fire or other casualty;
7        (4) employ counsel, custodians, janitors and other
8    help; and
9        (5) pay taxes which may have been or may be levied
10    against the mortgaged real estate.
11    (c) Duties. A receiver appointed pursuant to this Article
12must manage the mortgaged real estate as would a prudent
13person, taking into account the effect of the receiver's
14management on the interest of the mortgagor. A receiver may,
15without an order of the court, delegate managerial functions to
16a person in the business of managing real estate of the kind
17involved who is financially responsible, not related to the
18mortgagee or receiver and prudently selected. However, the
19receiver shall remain responsible to the mortgagor or other
20persons for the acts or omissions of such management agent.
21When fees are paid to such a management agent, the receiver's
22fees may be adjusted to the extent the court deems appropriate.
23In managing the mortgaged real estate and other property
24subject to the mortgage, a receiver or receiver's delegate, to
25the extent the receiver receives sufficient receipts from the
26mortgaged real estate, such other property or other sources,

 

 

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1except to the extent ordered otherwise by the court:
2        (1) shall maintain the existing casualty and liability
3    insurance required in accordance with the mortgage or
4    applicable to the real estate and other property subject to
5    the mortgage at the time the receiver took possession;
6        (2) shall use reasonable efforts to maintain the real
7    estate and other property subject to the mortgage in at
8    least as good condition as existed at the time the receiver
9    took possession, excepting reasonable wear and tear and
10    damage by any casualty;
11        (2.5) shall accept all rental payments from an occupant
12    of the mortgaged property, and any payments from a third
13    party or any rental assistance program in support of an
14    occupant's housing;
15        (3) shall apply receipts to payment of ordinary
16    operating expenses, including royalties, rents and other
17    expenses of management;
18        (4) shall pay any shared or common expense assessments
19    due to any association of owners of interests in real
20    estate to the extent that such assessments are or may
21    become a lien against the mortgaged real estate;
22        (5) may pay the amounts due under any mortgage if the
23    mortgagee thereof is not a party in the foreclosure;
24        (6) may carry such additional casualty and liability
25    insurance as is reasonably available and reasonable as to
26    amounts and risks covered;

 

 

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1        (7) may make other repairs and improvements necessary
2    to comply with building, housing, and other similar codes
3    or with existing contractual obligations affecting the
4    mortgaged real estate;
5        (8) may hold receipts as reserves reasonably required
6    for the foregoing purposes; and
7        (9) may take such other actions as may be reasonably
8    necessary to conserve the mortgaged real estate and other
9    property subject to the mortgage, or as otherwise
10    authorized by the court.
11    (d) Allocation of Receipts. Receipts received from
12operation of the real estate and other property subject to the
13mortgage by the receiver shall be applied in the following
14order of priority.
15        (1) to reimbursement of the receiver for all reasonable
16    costs and expenses incurred by the receiver or the
17    receiver's delegates;
18        (2) to payment of insurance premiums authorized in
19    paragraph (1) of subsection (c) of Section 15-1704;
20        (3) to payment of the receiver's delegates of any
21    reasonable management fees for managing real estate of the
22    type involved;
23        (4) to payment of receiver's fees allowed by the court;
24        (5) to payment of expenses authorized in paragraphs
25    (2), (3) and (4) of subsection (c) of Section 15-1704;
26        (6) to payment of amounts authorized in paragraph (5)

 

 

09800SB1602sam002- 46 -LRB098 09678 HEP 44569 a

1    of subsection (c) of Section 15-1704;
2        (7) to payment of expenses authorized in paragraphs (6)
3    and (7) of subsection (c) of Section 15-1704; and
4        (8) the balance, if any, shall be held or disbursed as
5    ordered by the court.
6    (e) Non-Liability for Allocations. A receiver shall in no
7event be liable to any person for the allocation of, or failure
8to allocate, receipts to possible expenditures within the same
9priority category.
10    (f) Notice to occupants.
11        (1) Following an order appointing a receiver pursuant
12    to Section 15-1704, but no later than 21 days after the
13    entry of such order, the appointed receiver shall make a
14    good faith effort to ascertain the identities and addresses
15    of all occupants of dwelling units of the mortgaged real
16    estate.
17        (2) Following an order appointing a receiver pursuant
18    to Section 15-1704, but no later than 21 days after the
19    entry of such order, the appointed receiver shall notify
20    all known occupants of dwelling units of the mortgaged real
21    estate that the receiver has been appointed receiver of the
22    mortgaged real estate. Such notice shall be in writing and
23    shall:
24            (i) identify the occupant being served by the name
25        known to the receiver;
26            (ii) inform the occupant that the mortgaged real

 

 

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1        estate at which the dwelling unit is located is the
2        subject of a foreclosure action and that control of the
3        mortgaged real estate has changed;
4            (iii) provide the name, address, and telephone
5        number of the individual or entity whom occupants may
6        contact with concerns about the mortgaged real estate
7        or to request repairs of that property;
8            (iv) include the following language, or language
9        that is substantially similar: "This is NOT a notice to
10        vacate the premises. You may wish to contact a lawyer
11        or your local legal aid or housing counseling agency to
12        discuss any rights that you may have."; and
13            (v) include the name of the case, the case number,
14        and the court where the foreclosure action is pending;
15        and .
16            (vi) provide instructions on the method of payment
17        of future rent, if applicable.
18        (3) The written notice required by item (2) of this
19    subsection (f) shall be served by delivering a copy thereof
20    to the known occupant, or by leaving the same with some
21    person of the age of 13 years or upwards, who is residing
22    on or in possession of the premises; or by sending a copy
23    of the notice to the known occupant by first-class mail,
24    addressed to the occupant by the name known to the
25    receiver.
26        (4) In the event that a receiver ascertains the

 

 

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1    identity and address of an occupant of a dwelling unit of
2    the mortgaged real estate more than 21 days after
3    appointment pursuant to Section 15-1704, the receiver
4    shall provide the notice required by item (2) of this
5    subsection (f) within 7 days of ascertaining the identity
6    and address of the occupant.
7        (5)(i) A receiver who fails to comply with items (1),
8    (2), (3), and (4) of this subsection (f) may not collect
9    any rent due and owing from a known occupant, or terminate
10    a known occupant's tenancy for non-payment of such rent,
11    until the receiver has served the notice described in item
12    (2) of this subsection (f) upon the known occupant. After
13    providing such notice, the receiver may collect any and all
14    rent accruing after service of the notice otherwise due and
15    owing the receiver from the known occupant and may
16    terminate the known occupant's tenancy for non-payment of
17    such rent if the receiver otherwise has such right to
18    terminate.
19        (ii) An occupant who previously paid rent for the
20    current rental period to the mortgagor, or other entity
21    with the authority to operate, manage, and conserve the
22    mortgaged real estate at the time of payment, shall not be
23    held liable for that rent by the receiver, and the
24    occupant's tenancy shall not be terminated for non-payment
25    of rent for that rental period.
26        (6) Within 21 days of appointment, the receiver shall

 

 

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1    post a written notice on the primary entrance of each
2    dwelling unit subject to the foreclosure action that
3    informs occupants that the receiver has been appointed to
4    operate and manage the property. This notice shall:
5            (i) inform occupant that the dwelling unit is the
6        subject of a foreclosure action and that control of the
7        mortgaged real estate has changed;
8            (ii) include the following language: "This is NOT a
9        notice to vacate the premises."; and
10            (iii) provide the name, address, and telephone
11        number of the individual or entity whom occupants may
12        contact with concerns about the mortgaged real estate
13        or to request repairs of the property; and .
14            (iv) provide instructions on the method of payment
15        of future rent, if applicable.
16        (7)(i) The provisions of item (5) of this subsection
17    (f) shall be the exclusive remedy for the failure of a
18    receiver to provide notice to a known occupant under this
19    Section.
20        (ii) This Section shall not abrogate any right that a
21    receiver may have to possession of the mortgaged real
22    estate and to maintain a proceeding against an occupant of
23    a dwelling unit for possession under Article IX 9 of this
24    Code or subsection (h) of Section 15-1701.
25    (g) Increase of rents. Notwithstanding any other provision
26of this Article, a receiver shall not charge an occupant of the

 

 

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1mortgaged real estate a rental amount above that which the
2occupant had been paying for use and occupancy of the mortgaged
3real estate prior to the appointment of a receiver without
4leave of court. The court may allow an increase of rent if,
5upon motion by the receiver, the court finds by a preponderance
6of the evidence, that the increase of rent is necessary to
7operate, manage, and conserve the mortgaged real estate
8pursuant to this Section. A list of the current rents for each
9unit in the mortgaged real estate, and a list of the proposed
10rent increase for each of those units, must be attached to a
11motion for a rent increase under this subsection (g). All
12occupants of the mortgaged real estate who may be affected by
13the motion for a rent increase, if not otherwise entitled to
14notice, shall be notified in writing of the nature of the
15motion, the date and time of the motion, and the court where
16the motion will be heard. Such notice shall be by personal
17service or first-class mail. In the event that the receiver and
18an occupant of a dwelling unit agree to a rent increase for
19that dwelling unit, the receiver is excused from the
20requirements of this subsection (g) as to that dwelling unit.
21Nothing in this subsection (g) shall alter the terms of any
22lease agreement.
23    (h) Removal. The court may remove a receiver upon a showing
24of good cause, in which case a new receiver may be appointed in
25accordance with subsection (b) of Section 15-1702 and
26subsection (a) of Section 15-1704.

 

 

09800SB1602sam002- 51 -LRB098 09678 HEP 44569 a

1(Source: P.A. 96-111, eff. 10-29-09.)
 
2    Section 95. No acceleration or delay. Where this Act makes
3changes in a statute that is represented in this Act by text
4that is not yet or no longer in effect (for example, a Section
5represented by multiple versions), the use of that text does
6not accelerate or delay the taking effect of (i) the changes
7made by this Act or (ii) provisions derived from any other
8Public Act.
 
9    Section 99. Effective date. This Act takes effect 90 days
10after becoming law.".