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 |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Code of Civil Procedure is amended by | 5 | | changing Sections 15-1506, 15-1508, and 15-1603 and by adding | 6 | | Sections 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 | 9 | | residential property" means residential real estate with | 10 | | respect to which the mortgagee proves, by a preponderance of | 11 | | the evidence, that the mortgaged real estate has been | 12 | | abandoned. To determine that the property has been abandoned | 13 | | the court must find the following: | 14 | | (a) the mortgaged property is not actually occupied by a | 15 | | mortgagor 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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| 1 | | considered 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 | 18 | | appearance by the mortgagor or other bona fide occupant is made | 19 | | at or before the hearing on a motion brought to shorten the | 20 | | redemption period pursuant to paragraph (4) of subsection (b) | 21 | | of Section 15-1603, the mortgaged real estate shall not be | 22 | | deemed 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 | 25 | | foreclosure, the evidence to support the
allegations of the |
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| 1 | | complaint shall be taken in open court, except:
| 2 | | (1) where an allegation of fact in the complaint is not | 3 | | denied by a
party's verified answer or verified counterclaim, | 4 | | or where a party pursuant
to subsection (b) of Section 2-610 of | 5 | | the Code of Civil Procedure states,
or is deemed to have | 6 | | stated, in
its pleading that it has no knowledge
of such | 7 | | allegation sufficient to form a belief and attaches the | 8 | | required
affidavit, a sworn verification of the complaint or a | 9 | | separate affidavit
setting forth such fact is sufficient | 10 | | evidence thereof against such party
and no further evidence of | 11 | | such fact shall be required; and
| 12 | | (2) where all the allegations of fact in the complaint have | 13 | | been proved
by verification of the complaint or affidavit, the | 14 | | court upon motion
supported by an affidavit stating the amount | 15 | | which is due the mortgagee,
shall enter a judgment of | 16 | | foreclosure as requested in the complaint.
| 17 | | (b) Instruments. In all cases the evidence of the | 18 | | indebtedness and the
mortgage foreclosed shall be exhibited to | 19 | | the court and appropriately
marked, and copies thereof shall be | 20 | | filed with the court.
| 21 | | (c) Summary and Default Judgments. Nothing in this Section | 22 | | 15-1506
shall prevent a party from obtaining a summary or | 23 | | default judgment
authorized by Article II of the Code of Civil | 24 | | Procedure. If the mortgagee files a motion to shorten the | 25 | | redemption period pursuant to paragraph (4) of subsection (b) | 26 | | of Section 15-1603 on or before the date of filing a motion for |
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| 1 | | entry of a default judgment, the motion shall be set before the | 2 | | court within 30 days after the filing of the motion for | 3 | | default, unless the motion brought under paragraph (4) of | 4 | | subsection (b) Section 15-1603 has already been heard and | 5 | | denied by the court.
| 6 | | (d) Notice of Entry of Default. When any judgment in a | 7 | | foreclosure is
entered by default, notice of such judgment | 8 | | shall be given in accordance
with Section 2-1302 of the Code of | 9 | | Civil Procedure.
| 10 | | (e) Matters Required in Judgment. A judgment of foreclosure | 11 | | shall
include the last date for redemption and all rulings of | 12 | | the court entered
with respect to each request for relief set | 13 | | forth in the complaint. The
omission of the date for redemption | 14 | | shall not extend the time for
redemption or impair the validity | 15 | | of the judgment.
| 16 | | (f) Special Matters in Judgment. Without limiting the | 17 | | general
authority and powers of the court, special matters may | 18 | | be included in the
judgment of foreclosure if sought by a party | 19 | | in the complaint or by separate
motion. Such matters may | 20 | | include, 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
| 24 | | conduct the sale other than the one customarily designated by | 25 | | the court;
| 26 | | (4) provisions for non-exclusive broker listings or |
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| 1 | | designating a duly
licensed real estate broker nominated by one | 2 | | of the parties to exclusively
list the real estate for sale;
| 3 | | (5) the fees or commissions to be paid out of the sale | 4 | | proceeds to the
listing or other duly licensed broker, if any, | 5 | | who shall have procured the accepted bid;
| 6 | | (6) the fees to be paid out of the sale proceeds to an | 7 | | auctioneer, if
any, who shall have been authorized to conduct a | 8 | | public auction sale;
| 9 | | (7) whether and in what manner and with what content signs | 10 | | shall be
posted on the real estate;
| 11 | | (8) a particular time and place at which such bids shall be | 12 | | received;
| 13 | | (9) a particular newspaper or newspapers in which notice of
| 14 | | sale shall be published;
| 15 | | (10) the format for the advertising of such sale,
including | 16 | | the size, content
and format of such advertising, and | 17 | | additional advertising of such sale;
| 18 | | (11) matters or exceptions to which title in the real | 19 | | estate may be subject
at the sale;
| 20 | | (12) a requirement that title insurance in a specified form | 21 | | be provided
to a purchaser at the sale, and who shall pay for | 22 | | such insurance;
| 23 | | (13) whether and to what extent bids with mortgage or other
| 24 | | contingencies will be allowed;
| 25 | | (14) such other matters as approved by the court to ensure | 26 | | sale of the
real estate for the most commercially favorable |
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| 1 | | price for the type of real
estate involved.
| 2 | | (g) Agreement of the Parties. If all of the parties agree | 3 | | in writing on
the minimum price and that the real estate may be | 4 | | sold to the first person
who offers in writing to purchase the | 5 | | real estate for such price, and on
such other commercially | 6 | | reasonable terms and conditions as the parties may
agree, then | 7 | | the court shall order the real estate to be sold on such terms,
| 8 | | subject to confirmation of the sale in accordance with Section | 9 | | 15-1508.
| 10 | | (h) Postponement of Proving Priority. With the approval of | 11 | | the court
prior to the entry of the judgment of foreclosure, a | 12 | | party claiming an
interest in the proceeds of the sale of the | 13 | | mortgaged real estate may defer
proving the priority of such | 14 | | interest until the hearing to confirm the sale.
| 15 | | (i) Effect of Judgment and Lien.
(1) Upon the entry of the | 16 | | judgment of foreclosure, all rights of a party
in the | 17 | | foreclosure against the mortgagor provided for in the judgment | 18 | | of foreclosure
or this Article shall be secured by a lien on | 19 | | the mortgaged
real estate, which lien shall have the same | 20 | | priority as the claim to
which the judgment relates and shall | 21 | | be terminated upon confirmation of a judicial
sale in | 22 | | accordance with this Article.
| 23 | | (2) Upon the entry of the judgment of foreclosure, the | 24 | | rights in the
real estate subject to the judgment of | 25 | | foreclosure of (i) all persons made
a party in the foreclosure | 26 | | and (ii) all nonrecord claimants given notice in
accordance |
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| 1 | | with paragraph (2) of subsection (c) of Section 15-1502, shall
| 2 | | be solely as provided for in
the judgment of foreclosure and in | 3 | | this 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 | 8 | | make a report to
the court, which report shall include a copy | 9 | | of all receipts and, if any,
certificate of sale. | 10 | | (b) Hearing. Upon motion and notice in accordance with | 11 | | court rules
applicable to motions generally, which motion shall | 12 | | not be made prior to
sale, the court shall conduct a hearing to
| 13 | | confirm the sale. Unless the court finds that (i) a notice | 14 | | required in
accordance with subsection (c) of Section 15-1507 | 15 | | was not given, (ii) the
terms of sale were unconscionable, | 16 | | (iii) the sale was conducted
fraudulently , or (iv) that justice | 17 | | was otherwise not done, the court shall
then enter an order | 18 | | confirming the sale. The confirmation order shall include a | 19 | | name, address, and telephone number of the holder of the | 20 | | certificate of sale or deed issued pursuant to that certificate | 21 | | or, if no certificate or deed was issued, the purchaser, whom a | 22 | | municipality or county may contact with concerns about the real | 23 | | estate. 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 | 12 | | respect to residential real estate, the notice required under | 13 | | subsection (b) of this Section shall be sent to the mortgagor | 14 | | even if the mortgagor has previously been held in default. In | 15 | | the event the mortgagor has filed an appearance, the notice | 16 | | shall be sent to the address indicated on the appearance. In | 17 | | all other cases, the notice shall be sent to the mortgagor at | 18 | | the common address of the foreclosed property. The notice shall | 19 | | be sent by first class mail. Unless the right to possession has | 20 | | been previously terminated by the court, the notice shall | 21 | | include the following language in 12-point boldface | 22 | | capitalized 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 | 2 | | county. A copy of the confirmation order required under | 3 | | subsection (b) shall be sent to the municipality in which the | 4 | | foreclosed property is located, or to the county within the | 5 | | boundary of which the foreclosed property is located if the | 6 | | foreclosed property is located in an unincorporated territory. | 7 | | A municipality or county must clearly publish on its website a | 8 | | single address to which such notice shall be sent. If a | 9 | | municipality or county does not maintain a website, then the | 10 | | municipality or county must publicly post in its main office a | 11 | | single address to which such notice shall be sent. In the event | 12 | | that a municipality or county has not complied with the | 13 | | publication requirement in this subsection (b-10), then such | 14 | | notice to the municipality or county shall be provided pursuant | 15 | | to Section 2-211 of the Code of Civil Procedure. | 16 | | (c) Failure to Give Notice. If any sale is held without | 17 | | compliance with
subsection (c) of Section 15-1507 of this | 18 | | Article, any party entitled to
the notice provided for in | 19 | | paragraph (3) of that subsection
(c) who was not so notified | 20 | | may, by motion supported by affidavit
made prior to | 21 | | confirmation of such sale, ask the court which entered the
| 22 | | judgment to set aside the sale. Any such party shall guarantee | 23 | | or secure by bond a bid equal to the successful bid at the | 24 | | prior sale, unless the party seeking to set aside the sale is | 25 | | the mortgagor, the real estate sold at the sale is residential | 26 | | real estate, and the mortgagor occupies the residential real |
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| 1 | | estate at the time the motion is filed. In that event, no | 2 | | guarantee or bond shall be required of the mortgagor. Any
| 3 | | subsequent sale is subject to the same notice requirement as | 4 | | the original sale. | 5 | | (d) Validity of Sale. Except as provided in subsection (c) | 6 | | of Section
15-1508, no sale under this Article shall be held | 7 | | invalid or be set aside
because of any defect in the notice | 8 | | thereof or in the publication of the
same, or in the | 9 | | proceedings of the officer conducting the sale, except upon
| 10 | | good cause shown in a hearing pursuant to subsection (b) of | 11 | | Section
15-1508. At any time after a sale has occurred, any | 12 | | party entitled to
notice under paragraph (3) of subsection (c) | 13 | | of Section 15-1507 may recover
from the mortgagee any damages | 14 | | caused by the mortgagee's failure to comply
with such paragraph | 15 | | (3). Any party who recovers damages in a judicial
proceeding | 16 | | brought under this subsection may also recover from the
| 17 | | mortgagee the reasonable expenses of litigation, including | 18 | | reasonable attorney's fees. | 19 | | (d-5) Making Home Affordable Program. The court that | 20 | | entered the judgment shall set aside a sale held pursuant to | 21 | | Section 15-1507, upon motion of the mortgagor at any time prior | 22 | | to the confirmation of the sale, if the mortgagor proves by a | 23 | | preponderance of the evidence that (i) the mortgagor has | 24 | | applied for assistance under the Making Home Affordable Program | 25 | | established by the United States Department of the Treasury | 26 | | pursuant to the Emergency Economic Stabilization Act of 2008, |
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| 1 | | as amended by the American Recovery and Reinvestment Act of | 2 | | 2009, and (ii) the mortgaged real estate was sold in material | 3 | | violation of the program's requirements for proceeding to a | 4 | | judicial sale. The provisions of this subsection (d-5), except | 5 | | for this sentence, shall become inoperative on January 1, 2013 | 6 | | for all actions filed under this Article after December 31, | 7 | | 2012, in which the mortgagor did not apply for assistance under | 8 | | the Making Home Affordable Program on or before December 31, | 9 | | 2012. | 10 | | (e) Deficiency Judgment. In any order confirming a sale | 11 | | pursuant to the
judgment of foreclosure, the court shall also | 12 | | enter a personal judgment
for deficiency against any party (i) | 13 | | if otherwise authorized and (ii) to
the extent requested in the | 14 | | complaint and proven upon presentation of the
report of sale in | 15 | | accordance with Section 15-1508. Except as otherwise provided
| 16 | | in this Article, a judgment may be entered for any balance of | 17 | | money that
may be found due to the plaintiff, over and above | 18 | | the proceeds of the sale
or sales, and enforcement may be had | 19 | | for the collection of such balance,
the same as when the | 20 | | judgment is solely for the payment of money. Such
judgment may | 21 | | be entered, or enforcement had,
only in cases where personal | 22 | | service has been had upon the
persons personally liable for the | 23 | | mortgage indebtedness, unless they have
entered their | 24 | | appearance in the foreclosure action. | 25 | | (f) Satisfaction. Upon confirmation of the sale, the
| 26 | | judgment stands satisfied to the extent of the sale price less |
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| 1 | | expenses and
costs. If the order confirming the sale includes a | 2 | | deficiency judgment, the
judgment shall become a lien in the | 3 | | manner of any other
judgment for the payment of money. | 4 | | (g) The order confirming the sale shall include, | 5 | | notwithstanding any
previous orders awarding possession during | 6 | | the pendency of the foreclosure, an
award to the purchaser of | 7 | | possession of the mortgaged real estate, as of the
date 30 days | 8 | | after the entry of the order, against the
parties to the | 9 | | foreclosure whose interests have been terminated. If the court | 10 | | has determined that the property is abandoned residential | 11 | | property pursuant to paragraph (4) of subsection (b) of Section | 12 | | 15-1603 and the parties whose interests have been terminated | 13 | | have not appeared at the hearing to confirm the sale, the | 14 | | purchaser shall be awarded possession of the mortgaged real | 15 | | estate immediately. | 16 | | An order of possession authorizing the removal of a person | 17 | | from possession
of the mortgaged real estate shall be entered | 18 | | and enforced only against those
persons personally
named as | 19 | | individuals in the complaint or the petition under subsection | 20 | | (h)
of Section 15-1701 and in the order of possession and shall
| 21 | | not be entered and enforced against any person who is only | 22 | | generically
described as an
unknown owner or nonrecord claimant | 23 | | or by another generic designation in the
complaint. | 24 | | Notwithstanding the preceding paragraph, the failure to | 25 | | personally
name,
include, or seek an award of
possession of the | 26 | | mortgaged real estate against a person in the
confirmation |
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| 1 | | order shall not abrogate any right that the purchaser may have | 2 | | to
possession of the mortgaged real estate and to maintain a | 3 | | proceeding against
that person for
possession under Article 9 | 4 | | of this Code or subsection (h) of Section 15-1701;
and | 5 | | possession against a person
who (1) has not been personally | 6 | | named as a party to the
foreclosure and (2) has not been | 7 | | provided an opportunity to be heard in the
foreclosure | 8 | | proceeding may be sought only by maintaining a
proceeding under | 9 | | Article 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; | 11 | | 96-856, 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 | 14 | | residential property. | 15 | | (a) A mortgagee or its agent may enter an abandoned | 16 | | residential property that is the subject of a foreclosure | 17 | | complaint for the purpose of maintaining or securing the | 18 | | property without an order for possession under the Illinois | 19 | | Mortgage Foreclosure Law, provided that entry is not barred by | 20 | | an automatic stay issued by a bankruptcy court. A mortgagee and | 21 | | its agents shall not be held liable for any claim of | 22 | | negligence, civil trespass, or criminal trespass based upon | 23 | | entering the abandoned residential property or maintaining or | 24 | | securing the abandoned residential property, provided that the | 25 | | person authorizing or engaging in the entry or activity has (1) |
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| 1 | | made a good faith effort to identify any owner and bona fide | 2 | | occupant of the property and (2) made a good faith effort to | 3 | | contact any owner and bona fide occupant in a manner reasonably | 4 | | calculated to give the owner and bona fide occupant notice that | 5 | | the entry or activity is imminent. | 6 | | (b) A mortgagee shall be responsible for repairs or other | 7 | | maintenance to the abandoned residential property if it | 8 | | purchases the property at the foreclosure sale held pursuant to | 9 | | Section 15-1507 and the sale is confirmed by the court pursuant | 10 | | to Section 15-1508. | 11 | | (c) Upon confirmation of the sale held pursuant to Section | 12 | | 15-1507, any personal property remaining in or upon the | 13 | | abandoned residential property shall be deemed to have been | 14 | | abandoned by the owner of such personal property and may be | 15 | | disposed of or donated by the holder of the certificate of sale | 16 | | or, if none, by the purchaser at the sale. In the event of | 17 | | donation of any such personal property, the holder of the | 18 | | certificate of sale or, if none, the purchaser at the sale may | 19 | | transfer such donated property with a bill of sale. No | 20 | | mortgagee or its successors or assigns, holder of a certificate | 21 | | of sale, or purchaser at the sale, shall be liable for any such | 22 | | disposal 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 | 2 | | from the foreclosure, and such owner of redemption may redeem
| 3 | | only during the redemption period specified in subsection (b) | 4 | | of Section
15-1603 and only if the right of redemption has not | 5 | | been 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 | 18 | | redeem 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 | 11 | | intends to
redeem shall give written notice of such intent to | 12 | | redeem to the
mortgagee's attorney of record specifying the | 13 | | date designated for
redemption and the current address of the | 14 | | owner of redemption for purposes
of receiving notice. Such | 15 | | owner of redemption shall file with the clerk of
the court a | 16 | | certification of the giving of such notice. The notice of
| 17 | | intent to redeem must be received by the mortgagee's attorney | 18 | | at least 15
days (other than Saturday, Sunday or court holiday) | 19 | | prior to the date
designated for redemption. The mortgagee | 20 | | shall thereupon file with the
clerk of the court and shall give | 21 | | written notice to the owner of redemption
at least three days | 22 | | (other than Saturday, Sunday or court holiday) before
the date | 23 | | designated for redemption a certification,
accompanied by | 24 | | copies of paid receipts or appropriate affidavits, of
any | 25 | | expenses authorized in paragraph (2) of subsection (d) of | 26 | | Section
15-1603. If the mortgagee fails
to serve such |
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| 1 | | certification within the time specified herein, then the owner
| 2 | | of redemption intending to redeem may redeem on the date | 3 | | designated for
redemption in the notice of intent to redeem, | 4 | | and the mortgagee shall not
be entitled to payment of any | 5 | | expenses authorized in paragraph (2) of
subsection (d) of | 6 | | Section 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 | 11 | | an owner of
redemption in accordance with paragraph (2) of | 12 | | subsection (f) of Section
15-1603, the clerk shall hold the | 13 | | amount to which the objection pertains
until the court orders | 14 | | distribution of those funds. The court shall hold a
hearing | 15 | | promptly to determine the distribution of any funds held by the
| 16 | | clerk pursuant to such objection. Each party shall pay its own | 17 | | costs and
expenses in connection with any objection, including | 18 | | attorneys' fees,
subject to Section 2-611 of the Code of Civil | 19 | | Procedure.
| 20 | | (h) Failure to Redeem. Unless the real estate being | 21 | | foreclosed is redeemed
from the foreclosure, it shall be sold | 22 | | as provided in this Article.
| 23 | | (Source: P.A. 86-974.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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