SB2730 EngrossedLRB098 17569 HEP 52678 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by adding
5Section 15-1603.5 as follows:
 
6    (735 ILCS 5/15-1603.5 new)
7    Sec. 15-1603.5. Strict foreclosure of an omitted
8subordinate interest.
9    (a) As used in this Section, "omitted subordinate interest"
10means a recorded subordinate interest in real estate where:
11        (1) the real estate is the subject of a foreclosure
12    action under this Article;
13        (2) a motion to confirm judicial sale under subsection
14    (b) of Section 15-1508 is either pending or has been
15    granted;
16        (3) the interest attached to the real estate prior to
17    the filing or recording of any notice in accordance with
18    Sections 2-1901 and 15-1503; and
19        (4) the interest was not named in the foreclosure
20    complaint.
21    (b) The holder of the certificate of sale or any person who
22acquired title pursuant to Section 15-1509 or any subsequent
23successor, assignee, transferee, or grantee who discovers an

 

 

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1omitted subordinate interest may file a strict foreclosure
2complaint. A complaint filed under this Section must include
3substantially the following:
4        (1) the identity of the plaintiff and how the plaintiff
5    acquired its interest in the property which is the subject
6    of the strict foreclosure;
7        (2) the docket number of the prior foreclosure action
8    and the recording number and date of the mortgage that was
9    previously foreclosed;
10        (3) the legal description, common address, and parcel
11    identification number of the real estate which is the
12    subject of the strict foreclosure;
13        (4) the recording number and a copy of the recorded
14    omitted subordinate interest holder to be named as the
15    defendant;
16        (5) the amount of the successful bid at the foreclosure
17    sale, as stated in the report of sale in the prior
18    foreclosure action, with a copy of the report of sale
19    attached to the complaint;
20        (6) an allegation that, due to inadvertence or mistake
21    or such other reason as may be applicable, the omitted
22    subordinate interest was not made a party defendant in the
23    prior foreclosure action and the omitted subordinate
24    interest was not terminated by the judgment of foreclosure
25    and when the subject property was sold by judicial sale;
26    and

 

 

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1        (7) a request for relief setting forth the redemption
2    period as provided in this Section and identifying a
3    contact by name and telephone number who will accept tender
4    of the redemption amount.
5    (c) Subject to the objection of the defendant, the court
6shall enter a judgment extinguishing the omitted subordinate
7interest by vesting absolute title to the mortgaged real estate
8in the plaintiff, free and clear of all claims and liens
9(except liens of the United States of America that cannot be
10foreclosed without judicial sale).
11    (d) If the defendant objects to the entry of the judgment,
12the court, after a hearing, shall enter an order providing
13either:
14        (1) that good cause for the objection has not been
15    shown by the defendant and the defendant has not agreed to
16    pay the amount required to redeem, in which event the court
17    shall proceed to enter the judgment; or
18        (2) that good cause for the objection has been shown by
19    the defendant and the defendant has agreed to pay the
20    amount required to redeem.
21    (e) The amount required to redeem shall be the sum bid at
22the prior foreclosure sale plus any costs and fees incurred
23subsequent to the sale for the payment of taxes, preservation
24of the property, or any other actions taken by the holder of
25the certificate of sale to protect its interest in the
26property.

 

 

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1    The order shall state that upon payment of the redemption
2amount within the redemption period, which shall extend 30 days
3after the entry of the order, title to the real estate shall
4vest in the defendant who redeems pursuant to this Section.
5Title to the defendant shall be free and clear of all claims
6and liens (except liens of the United States of America that
7cannot be foreclosed without judicial sale). If the defendant
8subject to the order has not paid the amount required to redeem
9within the 30-day redemption period, the interest of the
10defendant in the property is terminated.
11    (f) A person whose omitted subordinate interest was not
12terminated by a prior foreclosure action does not have a right
13to file a strict foreclosure action.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.