Illinois General Assembly - Full Text of HB3789
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Full Text of HB3789  97th General Assembly

HB3789 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3789

 

Introduced 5/30/2011, by Rep. Rich Brauer - Raymond Poe

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/15-1200.5 new
735 ILCS 5/15-1506  from Ch. 110, par. 15-1506
735 ILCS 5/15-1508  from Ch. 110, par. 15-1508
735 ILCS 5/15-1508.8 new
735 ILCS 5/15-1603  from Ch. 110, par. 15-1603

    Amends the Code of Civil Procedure. Provides that "abandoned residential property" means residential real estate which the court finds is not occupied by a mortgagor or a bonafide occupant and as to which at least one of several listed circumstances exist. Describes designated circumstances when a property shall not be considered abandoned residential property. Provides a procedure for a motion to shorten the redemption period for abandoned residential property. Provides that upon confirmation of the judicial sale, any personal property remaining in or upon the abandoned residential property is deemed abandoned and may be disposed of or donated by the holder of the certificate of sale or the purchaser at the sale. Makes other and corresponding changes. Effective immediately.


LRB097 12216 AJO 56622 b

 

 

A BILL FOR

 

HB3789LRB097 12216 AJO 56622 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
5changing Sections 15-1506, 15-1508, and 15-1603 and by adding
6Sections 15-1200.5 and 15-1508.8 as follows:
 
7    (735 ILCS 5/15-1200.5 new)
8    Sec. 15-1200.5. Abandoned residential property. "Abandoned
9residential property" means residential real estate with
10respect to which the mortgagee proves, by a preponderance of
11the evidence, that the mortgaged real estate has been
12abandoned. To determine that the property has been abandoned
13the court must find the following:
14    (a) the mortgaged property is not actually occupied by a
15mortgagor or other bona fide occupant; and
16    (b) at least one of the following applies:
17        (1) more than 5 attempts to contact the mortgagor have
18    been made, at least one by certified mail and one by
19    telephone, if there is a working telephone number for the
20    mortgagor; and at least 2 of the following supporting facts
21    are true:
22            (A) construction was initiated on the property and
23        was discontinued prior to completion, leaving the

 

 

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1        building unsuitable for occupancy, and no lawful
2        construction has taken place for at least 6 months;
3            (B) the property has had more than one uncorrected
4        municipal code violation over the past year, or has
5        been unfit for occupancy and ordered to remain vacant
6        and unoccupied by the municipal authorities;
7            (C) gas, electric, or water service to the entire
8        premises has been terminated or is threatened with
9        termination;
10            (D) windows or entrances to the premises are
11        boarded up or closed off or multiple window panes are
12        broken and unrepaired;
13            (E) doors to the premises are smashed through,
14        broken off, unhinged, or continuously unlocked;
15            (F) the police or sheriff's office received at
16        least 2 reports of trespassers on the premises or of
17        vandalism or other illegal acts being committed on the
18        premises in the past 6 months;
19        (2) two or more attempts to contact the mortgagor have
20    been made and there exist written statements of the
21    mortgagor or the mortgagor's personal representatives or
22    assigns, including documents of conveyance, which indicate
23    a clear intent to abandon the premises; or
24        (3) two or more attempts to contact the mortgagor have
25    been made and the property is a vacant lot.
26    (c) For purposes of this Section, a property shall not be

 

 

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1considered abandoned residential property if, on the property:
2        (1) there is an unoccupied building which is undergoing
3    construction, renovation, or rehabilitation that is
4    proceeding diligently to completion, and the building is in
5    compliance with all applicable ordinances, codes,
6    regulations, and statutes;
7        (2) there is a building occupied on a seasonal basis,
8    but otherwise secure;
9        (3) there is a secure building on which there are
10    rental or sale signs;
11        (4) there is a building that is secure, but is the
12    subject of a probate action, action to quiet title, or
13    other ownership dispute; or
14        (5) there is otherwise a building that is secure and in
15    substantial compliance with all applicable ordinances,
16    codes, regulations, and statutes.
17    (d) Notwithstanding the provisions of this Section, if an
18appearance by the mortgagor or other bona fide occupant is made
19at or before the hearing on a motion brought to shorten the
20redemption period pursuant to paragraph (4) of subsection (b)
21of Section 15-1603, the mortgaged real estate shall not be
22deemed to be abandoned residential property.
 
23    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
24    Sec. 15-1506. Judgment. (a) Evidence. In the trial of a
25foreclosure, the evidence to support the allegations of the

 

 

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1complaint shall be taken in open court, except:
2    (1) where an allegation of fact in the complaint is not
3denied by a party's verified answer or verified counterclaim,
4or where a party pursuant to subsection (b) of Section 2-610 of
5the Code of Civil Procedure states, or is deemed to have
6stated, in its pleading that it has no knowledge of such
7allegation sufficient to form a belief and attaches the
8required affidavit, a sworn verification of the complaint or a
9separate affidavit setting forth such fact is sufficient
10evidence thereof against such party and no further evidence of
11such fact shall be required; and
12    (2) where all the allegations of fact in the complaint have
13been proved by verification of the complaint or affidavit, the
14court upon motion supported by an affidavit stating the amount
15which is due the mortgagee, shall enter a judgment of
16foreclosure as requested in the complaint.
17    (b) Instruments. In all cases the evidence of the
18indebtedness and the mortgage foreclosed shall be exhibited to
19the court and appropriately marked, and copies thereof shall be
20filed with the court.
21    (c) Summary and Default Judgments. Nothing in this Section
2215-1506 shall prevent a party from obtaining a summary or
23default judgment authorized by Article II of the Code of Civil
24Procedure. If the mortgagee files a motion to shorten the
25redemption period pursuant to paragraph (4) of subsection (b)
26of Section 15-1603 on or before the date of filing a motion for

 

 

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1entry of a default judgment, the motion shall be set before the
2court within 30 days after the filing of the motion for
3default, unless the motion brought under paragraph (4) of
4subsection (b) Section 15-1603 has already been heard and
5denied by the court.
6    (d) Notice of Entry of Default. When any judgment in a
7foreclosure is entered by default, notice of such judgment
8shall be given in accordance with Section 2-1302 of the Code of
9Civil Procedure.
10    (e) Matters Required in Judgment. A judgment of foreclosure
11shall include the last date for redemption and all rulings of
12the court entered with respect to each request for relief set
13forth in the complaint. The omission of the date for redemption
14shall not extend the time for redemption or impair the validity
15of the judgment.
16    (f) Special Matters in Judgment. Without limiting the
17general authority and powers of the court, special matters may
18be included in the judgment of foreclosure if sought by a party
19in the complaint or by separate motion. Such matters may
20include, without limitation:
21    (1) a manner of sale other than public auction;
22    (2) a sale by sealed bid;
23    (3) an official or other person who shall be the officer to
24conduct the sale other than the one customarily designated by
25the court;
26    (4) provisions for non-exclusive broker listings or

 

 

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1designating a duly licensed real estate broker nominated by one
2of the parties to exclusively list the real estate for sale;
3    (5) the fees or commissions to be paid out of the sale
4proceeds to the listing or other duly licensed broker, if any,
5who shall have procured the accepted bid;
6    (6) the fees to be paid out of the sale proceeds to an
7auctioneer, if any, who shall have been authorized to conduct a
8public auction sale;
9    (7) whether and in what manner and with what content signs
10shall be posted on the real estate;
11    (8) a particular time and place at which such bids shall be
12received;
13    (9) a particular newspaper or newspapers in which notice of
14sale shall be published;
15    (10) the format for the advertising of such sale, including
16the size, content and format of such advertising, and
17additional advertising of such sale;
18    (11) matters or exceptions to which title in the real
19estate may be subject at the sale;
20    (12) a requirement that title insurance in a specified form
21be provided to a purchaser at the sale, and who shall pay for
22such insurance;
23    (13) whether and to what extent bids with mortgage or other
24contingencies will be allowed;
25    (14) such other matters as approved by the court to ensure
26sale of the real estate for the most commercially favorable

 

 

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1price for the type of real estate involved.
2    (g) Agreement of the Parties. If all of the parties agree
3in writing on the minimum price and that the real estate may be
4sold to the first person who offers in writing to purchase the
5real estate for such price, and on such other commercially
6reasonable terms and conditions as the parties may agree, then
7the court shall order the real estate to be sold on such terms,
8subject to confirmation of the sale in accordance with Section
915-1508.
10    (h) Postponement of Proving Priority. With the approval of
11the court prior to the entry of the judgment of foreclosure, a
12party claiming an interest in the proceeds of the sale of the
13mortgaged real estate may defer proving the priority of such
14interest until the hearing to confirm the sale.
15    (i) Effect of Judgment and Lien. (1) Upon the entry of the
16judgment of foreclosure, all rights of a party in the
17foreclosure against the mortgagor provided for in the judgment
18of foreclosure or this Article shall be secured by a lien on
19the mortgaged real estate, which lien shall have the same
20priority as the claim to which the judgment relates and shall
21be terminated upon confirmation of a judicial sale in
22accordance with this Article.
23    (2) Upon the entry of the judgment of foreclosure, the
24rights in the real estate subject to the judgment of
25foreclosure of (i) all persons made a party in the foreclosure
26and (ii) all nonrecord claimants given notice in accordance

 

 

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1with paragraph (2) of subsection (c) of Section 15-1502, shall
2be solely as provided for in the judgment of foreclosure and in
3this Article.
4(Source: P.A. 85-907.)
 
5    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
6    Sec. 15-1508. Report of Sale and Confirmation of Sale.
7    (a) Report. The person conducting the sale shall promptly
8make a report to the court, which report shall include a copy
9of all receipts and, if any, certificate of sale.
10    (b) Hearing. Upon motion and notice in accordance with
11court rules applicable to motions generally, which motion shall
12not be made prior to sale, the court shall conduct a hearing to
13confirm the sale. Unless the court finds that (i) a notice
14required in accordance with subsection (c) of Section 15-1507
15was not given, (ii) the terms of sale were unconscionable,
16(iii) the sale was conducted fraudulently, or (iv) that justice
17was otherwise not done, the court shall then enter an order
18confirming the sale. The confirmation order shall include a
19name, address, and telephone number of the holder of the
20certificate of sale or deed issued pursuant to that certificate
21or, if no certificate or deed was issued, the purchaser, whom a
22municipality or county may contact with concerns about the real
23estate. The confirmation order may also:
24        (1) approve the mortgagee's fees and costs arising
25    between the entry of the judgment of foreclosure and the

 

 

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

 

 

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1    (b-10) Notice of confirmation order sent to municipality or
2county. A copy of the confirmation order required under
3subsection (b) shall be sent to the municipality in which the
4foreclosed property is located, or to the county within the
5boundary of which the foreclosed property is located if the
6foreclosed property is located in an unincorporated territory.
7A municipality or county must clearly publish on its website a
8single address to which such notice shall be sent. If a
9municipality or county does not maintain a website, then the
10municipality or county must publicly post in its main office a
11single address to which such notice shall be sent. In the event
12that a municipality or county has not complied with the
13publication requirement in this subsection (b-10), then such
14notice to the municipality or county shall be provided pursuant
15to Section 2-211 of the Code of Civil Procedure.
16    (c) Failure to Give Notice. If any sale is held without
17compliance with subsection (c) of Section 15-1507 of this
18Article, any party entitled to the notice provided for in
19paragraph (3) of that subsection (c) who was not so notified
20may, by motion supported by affidavit made prior to
21confirmation of such sale, ask the court which entered the
22judgment to set aside the sale. Any such party shall guarantee
23or secure by bond a bid equal to the successful bid at the
24prior sale, unless the party seeking to set aside the sale is
25the mortgagor, the real estate sold at the sale is residential
26real estate, and the mortgagor occupies the residential real

 

 

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1estate at the time the motion is filed. In that event, no
2guarantee or bond shall be required of the mortgagor. Any
3subsequent sale is subject to the same notice requirement as
4the original sale.
5    (d) Validity of Sale. Except as provided in subsection (c)
6of Section 15-1508, no sale under this Article shall be held
7invalid or be set aside because of any defect in the notice
8thereof or in the publication of the same, or in the
9proceedings of the officer conducting the sale, except upon
10good cause shown in a hearing pursuant to subsection (b) of
11Section 15-1508. At any time after a sale has occurred, any
12party entitled to notice under paragraph (3) of subsection (c)
13of Section 15-1507 may recover from the mortgagee any damages
14caused by the mortgagee's failure to comply with such paragraph
15(3). Any party who recovers damages in a judicial proceeding
16brought under this subsection may also recover from the
17mortgagee the reasonable expenses of litigation, including
18reasonable attorney's fees.
19    (d-5) Making Home Affordable Program. The court that
20entered the judgment shall set aside a sale held pursuant to
21Section 15-1507, upon motion of the mortgagor at any time prior
22to the confirmation of the sale, if the mortgagor proves by a
23preponderance of the evidence that (i) the mortgagor has
24applied for assistance under the Making Home Affordable Program
25established by the United States Department of the Treasury
26pursuant to the Emergency Economic Stabilization Act of 2008,

 

 

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1as amended by the American Recovery and Reinvestment Act of
22009, and (ii) the mortgaged real estate was sold in material
3violation of the program's requirements for proceeding to a
4judicial sale. The provisions of this subsection (d-5), except
5for this sentence, shall become inoperative on January 1, 2013
6for all actions filed under this Article after December 31,
72012, in which the mortgagor did not apply for assistance under
8the Making Home Affordable Program on or before December 31,
92012.
10    (e) Deficiency Judgment. In any order confirming a sale
11pursuant to the judgment of foreclosure, the court shall also
12enter a personal judgment for deficiency against any party (i)
13if otherwise authorized and (ii) to the extent requested in the
14complaint and proven upon presentation of the report of sale in
15accordance with Section 15-1508. Except as otherwise provided
16in this Article, a judgment may be entered for any balance of
17money that may be found due to the plaintiff, over and above
18the proceeds of the sale or sales, and enforcement may be had
19for the collection of such balance, the same as when the
20judgment is solely for the payment of money. Such judgment may
21be entered, or enforcement had, only in cases where personal
22service has been had upon the persons personally liable for the
23mortgage indebtedness, unless they have entered their
24appearance in the foreclosure action.
25    (f) Satisfaction. Upon confirmation of the sale, the
26judgment stands satisfied to the extent of the sale price less

 

 

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1expenses and costs. If the order confirming the sale includes a
2deficiency judgment, the judgment shall become a lien in the
3manner of any other judgment for the payment of money.
4    (g) The order confirming the sale shall include,
5notwithstanding any previous orders awarding possession during
6the pendency of the foreclosure, an award to the purchaser of
7possession of the mortgaged real estate, as of the date 30 days
8after the entry of the order, against the parties to the
9foreclosure whose interests have been terminated. If the court
10has determined that the property is abandoned residential
11property pursuant to paragraph (4) of subsection (b) of Section
1215-1603 and the parties whose interests have been terminated
13have not appeared at the hearing to confirm the sale, the
14purchaser shall be awarded possession of the mortgaged real
15estate immediately.
16    An order of possession authorizing the removal of a person
17from possession of the mortgaged real estate shall be entered
18and enforced only against those persons personally named as
19individuals in the complaint or the petition under subsection
20(h) of Section 15-1701 and in the order of possession and shall
21not be entered and enforced against any person who is only
22generically described as an unknown owner or nonrecord claimant
23or by another generic designation in the complaint.
24    Notwithstanding the preceding paragraph, the failure to
25personally name, include, or seek an award of possession of the
26mortgaged real estate against a person in the confirmation

 

 

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1order shall not abrogate any right that the purchaser may have
2to possession of the mortgaged real estate and to maintain a
3proceeding against that person for possession under Article 9
4of this Code or subsection (h) of Section 15-1701; and
5possession against a person who (1) has not been personally
6named as a party to the foreclosure and (2) has not been
7provided an opportunity to be heard in the foreclosure
8proceeding may be sought only by maintaining a proceeding under
9Article 9 of this Code or subsection (h) of Section 15-1701.
10(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09;
1196-856, eff. 3-1-10; 96-1245, eff. 7-23-10; revised 9-16-10.)
 
12    (735 ILCS 5/15-1508.8 new)
13    Sec. 15-1508.8. Activities relating to abandoned
14residential property.
15    (a) A mortgagee or its agent may enter an abandoned
16residential property that is the subject of a foreclosure
17complaint for the purpose of maintaining or securing the
18property without an order for possession under the Illinois
19Mortgage Foreclosure Law, provided that entry is not barred by
20an automatic stay issued by a bankruptcy court. A mortgagee and
21its agents shall not be held liable for any claim of
22negligence, civil trespass, or criminal trespass based upon
23entering the abandoned residential property or maintaining or
24securing the abandoned residential property, provided that the
25person authorizing or engaging in the entry or activity has (1)

 

 

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1made a good faith effort to identify any owner and bona fide
2occupant of the property and (2) made a good faith effort to
3contact any owner and bona fide occupant in a manner reasonably
4calculated to give the owner and bona fide occupant notice that
5the entry or activity is imminent.
6    (b) A mortgagee shall be responsible for repairs or other
7maintenance to the abandoned residential property if it
8purchases the property at the foreclosure sale held pursuant to
9Section 15-1507 and the sale is confirmed by the court pursuant
10to Section 15-1508.
11    (c) Upon confirmation of the sale held pursuant to Section
1215-1507, any personal property remaining in or upon the
13abandoned residential property shall be deemed to have been
14abandoned by the owner of such personal property and may be
15disposed of or donated by the holder of the certificate of sale
16or, if none, by the purchaser at the sale. In the event of
17donation of any such personal property, the holder of the
18certificate of sale or, if none, the purchaser at the sale may
19transfer such donated property with a bill of sale. No
20mortgagee or its successors or assigns, holder of a certificate
21of sale, or purchaser at the sale, shall be liable for any such
22disposal or donation of personal property.
 
23    (735 ILCS 5/15-1603)  (from Ch. 110, par. 15-1603)
24    Sec. 15-1603. Redemption.
25    (a) Owner of Redemption. Except as provided in subsection

 

 

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1(b) of Section 15-1402, only an owner of redemption may redeem
2from the foreclosure, and such owner of redemption may redeem
3only during the redemption period specified in subsection (b)
4of Section 15-1603 and only if the right of redemption has not
5been validly waived.
6    (b) Redemption Period.
7        (1) In the foreclosure of a mortgage of real estate
8    which is residential real estate at the time the
9    foreclosure is commenced, the redemption period shall end
10    on the later of (i) the date 7 months from the date the
11    mortgagor or, if more than one, all the mortgagors (A) have
12    been served with summons or by publication or (B) have
13    otherwise submitted to the jurisdiction of the court, or
14    (ii) the date 3 months from the date of entry of a judgment
15    of foreclosure.
16        (2) In all other foreclosures, the redemption period
17    shall end on the later of (i) the date 6 months from the
18    date the mortgagor or, if more than one, all the mortgagors
19    (A) have been served with summons or by publication or (B)
20    have otherwise submitted to the jurisdiction of the court,
21    or (ii) the date 3 months from the date of entry of a
22    judgment of foreclosure.
23        (3) Notwithstanding paragraphs (1) and (2), the
24    redemption period shall end at the later of the expiration
25    of any reinstatement period provided for in Section 15-1602
26    or the date 60 days after the date the judgment of

 

 

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1    foreclosure is entered, if the court finds that (i) the
2    value of the mortgaged real estate as of the date of the
3    judgment is less than 90% of the amount specified pursuant
4    to subsection (d) of Section 15-1603 and (ii) the mortgagee
5    waives any and all rights to a personal judgment for a
6    deficiency against the mortgagor and against all other
7    persons liable for the indebtedness or other obligations
8    secured by the mortgage.
9        (4) Notwithstanding paragraphs (1) and (2), the
10    redemption period shall end on the date 30 days after the
11    date the judgment of foreclosure is entered if, upon motion
12    and notice in accordance with court rules applicable to
13    motions generally, the court finds that the mortgaged real
14    estate is abandoned residential property has been
15    abandoned. In cases where the redemption period is
16    shortened on account of abandonment, the reinstatement
17    period shall not extend beyond the redemption period as
18    shortened.
19    (c) Extension of Redemption Period.
20        (1) Once expired, the right of redemption provided for
21    in Sections 15-1603 or 15-1604 shall not be revived. The
22    period within which the right of redemption provided for in
23    Sections 15-1603 or 15-1604 may be exercised runs
24    independently of any action by any person to enforce the
25    judgment of foreclosure or effect a sale pursuant thereto.
26    Neither the initiation of any legal proceeding nor the

 

 

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1    order of any court staying the enforcement of a judgment of
2    foreclosure or the sale pursuant to a judgment or the
3    confirmation of the sale, shall have the effect of tolling
4    the running of the redemption period.
5        (2) If a court has the authority to stay, and does
6    stay, the running of the redemption period, or if the
7    redemption period is extended by any statute of the United
8    States, the redemption period shall be extended until the
9    expiration of the same number of days after the expiration
10    of the stay order as the number of days remaining in the
11    redemption period at the time the stay order became
12    effective, or, if later, until the expiration of 30 days
13    after the stay order terminates. If the stay order
14    terminates more than 30 days prior to the expiration of the
15    redemption period, the redemption period shall not be
16    extended.
17    (d) Amount Required to Redeem. The amount required to
18redeem shall be the sum of:
19        (1) The amount specified in the judgment of
20    foreclosure, which shall consist of (i) all principal and
21    accrued interest secured by the mortgage and due as of the
22    date of the judgment, (ii) all costs allowed by law, (iii)
23    costs and expenses approved by the court, (iv) to the
24    extent provided for in the mortgage and approved by the
25    court, additional costs, expenses and reasonable
26    attorneys' fees incurred by the mortgagee, (v) all amounts

 

 

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1    paid pursuant to Section 15-1505 and (vi) per diem interest
2    from the date of judgment to the date of redemption
3    calculated at the mortgage rate of interest applicable as
4    if no default had occurred; and
5        (2) The amount of other expenses authorized by the
6    court which the mortgagee reasonably incurs between the
7    date of judgment and the date of redemption, which shall be
8    the amount certified by the mortgagee in accordance with
9    subsection (e) of Section 15-1603.
10    (e) Notice of Intent to Redeem. An owner of redemption who
11intends to redeem shall give written notice of such intent to
12redeem to the mortgagee's attorney of record specifying the
13date designated for redemption and the current address of the
14owner of redemption for purposes of receiving notice. Such
15owner of redemption shall file with the clerk of the court a
16certification of the giving of such notice. The notice of
17intent to redeem must be received by the mortgagee's attorney
18at least 15 days (other than Saturday, Sunday or court holiday)
19prior to the date designated for redemption. The mortgagee
20shall thereupon file with the clerk of the court and shall give
21written notice to the owner of redemption at least three days
22(other than Saturday, Sunday or court holiday) before the date
23designated for redemption a certification, accompanied by
24copies of paid receipts or appropriate affidavits, of any
25expenses authorized in paragraph (2) of subsection (d) of
26Section 15-1603. If the mortgagee fails to serve such

 

 

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1certification within the time specified herein, then the owner
2of redemption intending to redeem may redeem on the date
3designated for redemption in the notice of intent to redeem,
4and the mortgagee shall not be entitled to payment of any
5expenses authorized in paragraph (2) of subsection (d) of
6Section 15-1603.
7    (f) Procedure for Redemption.
8        (1) An owner of redemption may redeem the real estate
9    from the foreclosure by paying the amount specified in
10    subsection (d) of Section 15-1603 to the mortgagee or the
11    mortgagee's attorney of record on or before the date
12    designated for redemption pursuant to subsection (e) of
13    Section 15-1603.
14        (2) If the mortgagee refuses to accept payment or if
15    the owner of redemption redeeming from the foreclosure
16    objects to the reasonableness of the additional expenses
17    authorized in paragraph (2) of subsection (d) of Section
18    15-1603 and certified in accordance with subsection (e) of
19    Section 15-1603, the owner of redemption shall pay the
20    certified amount to the clerk of the court on or before the
21    date designated for redemption, together with a written
22    statement specifying the expenses to which objection is
23    made. In such case the clerk shall pay to the mortgagee the
24    amount tendered minus the amount to which the objection
25    pertains.
26        (3) Upon payment to the clerk, whether or not the owner

 

 

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1    of redemption files an objection at the time of payment,
2    the clerk shall give a receipt of payment to the person
3    redeeming from the foreclosure, and shall file a copy of
4    that receipt in the foreclosure record. Upon receipt of the
5    amounts specified to be paid to the mortgagee pursuant to
6    this Section, the mortgagee shall promptly furnish the
7    mortgagor with a release of the mortgage or satisfaction of
8    the judgment, as appropriate, and the evidence of all
9    indebtedness secured by the mortgage shall be cancelled.
10    (g) Procedure Upon Objection. If an objection is filed by
11an owner of redemption in accordance with paragraph (2) of
12subsection (f) of Section 15-1603, the clerk shall hold the
13amount to which the objection pertains until the court orders
14distribution of those funds. The court shall hold a hearing
15promptly to determine the distribution of any funds held by the
16clerk pursuant to such objection. Each party shall pay its own
17costs and expenses in connection with any objection, including
18attorneys' fees, subject to Section 2-611 of the Code of Civil
19Procedure.
20    (h) Failure to Redeem. Unless the real estate being
21foreclosed is redeemed from the foreclosure, it shall be sold
22as provided in this Article.
23(Source: P.A. 86-974.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.