Illinois General Assembly - Full Text of HB5759
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Full Text of HB5759  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/16/2012, by Rep. Luis Arroyo


See Index

    Amends the Mortgage Foreclosure Article of the Code of Civil Procedure and the State Finance Act. Provides that an attorney appointed by the chief judge of the judicial circuit shall be assigned as a mediator for mandatory foreclosure mediation prior to the filing of a residential real estate foreclosure action. Provides that a mortgagor who is delinquent by more than 45 days may petition for mediation. Provides that, unless a mortgagor has filed for bankruptcy, if a mortgage is delinquent by more than 60 days and the mortgagee intends to foreclose the mortgage, the mortgagee shall file a mediation notice with the circuit clerk. Provides that, upon the filing of a petition for mediation by a mortgagee or the filing of a mediation notice by a mortgagor, the mortgagee shall freeze the mortgagor's account and any obligation to pay any installment on the mortgage loan or any additional charge, fee, or penalty is stayed until a final mortgage modification plan is reached or the mediator's written report is filed with the circuit clerk. Provides that, when filing a foreclosure complaint for residential real estate, the plaintiff shall pay to the court clerk a $100 fee for deposit into the Mandatory Foreclosure Mediation Fund, a special fund in the State treasury. Provides that specified fines shall also be deposited into the Fund. Provides that fees shall be remitted to the State Treasurer and expended for purposes related to mediation. Contains provisions regarding: mailing; qualifications and assignment of mediators; payment to mediators; mediation sessions; counselors employed by approved counseling agencies; conclusion of mediation; fines; reports; limits on mediation; final plans; compliance; liability; waiver; intent; applicability; foreclosure complaints; and other matters. Effective immediately.

LRB097 14127 AJO 66150 b






HB5759LRB097 14127 AJO 66150 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 15-1504 and by adding Sections 15-1502.7 and
615-1504.2 as follows:
7    (735 ILCS 5/15-1502.7 new)
8    Sec. 15-1502.7. Mandatory foreclosure mediation.
9    (a) As used in this Section:
10    "Approved counseling agency" means a housing counseling
11agency approved by the U.S. Department of Housing and Urban
13    "Approved counselor" or "counselor" means a counselor
14employed by an approved counseling agency.
15    "Court-appointed mediator" or "mediator" means an attorney
16who is appointed by the chief judge of the circuit in which the
17attorney will serve as a mediator pursuant to this Section.
18    "Delinquent" means past due with respect to a payment on a
19mortgage loan which is secured by a mortgage on residential
20real estate.
21    "Final mortgage modification plan" or "final plan"
22includes all documents necessary to give effect to the mortgage
23modification plan, which have been properly executed by the



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1appropriate parties, and which are in a form which, if
2appropriate, may be recorded in the recorder's office.
3    "Mandatory foreclosure mediation" means an in-person
4mediation conducted by a court-appointed mediator that must be
5attended by the mortgagee, any servicer acting for the
6mortgagee, the mortgagor, and an approved counselor.
7    "Mortgage modification plan" or "plan" means a plan
8developed through the mandatory mediation process that
9involves the good faith efforts of the mortgagor, the
10mortgagee, the servicer, if any, an approved counselor, and the
11mediator, and which when agreed to by the mortgagor and the
12mortgagee will enable the mortgagor to stay current on his or
13her existing or modified mortgage payments for the foreseeable
14future when taking into account the mortgagor's income and
15existing and foreseeable debts. A mortgage modification plan
16may include, but is not limited to: (1) a temporary suspension
17of payments; (2) a lengthened loan term; (3) a lowered or
18frozen interest rate; (4) a modification of escrow payments;
19(5) a change in the entity acting as the loan servicer; (6) a
20modification or change in the insurance coverages applicable to
21the mortgage loan or the residential real estate; (7) a
22principal write down; (8) a repayment plan to pay the existing
23loan in full; (9) deferred payments; or (10) refinancing into a
24new affordable loan, which may include adjustable rates if
25there are reasonable future adjustments that are suitable for
26the mortgagor.



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1    "Servicer" means any entity or organization that services a
2mortgage loan by collecting and accounting for the mortgagor's
3monthly mortgage payments which may include the principal and
4interest loan payment, homeowner's insurance premium for the
5property, principal mortgage insurance premium, real estate
6taxes, and other escrow payments or charges.
7    (b) The chief judge of each circuit shall appoint a
8sufficient number of licensed attorneys as court-appointed
9mediators to meet the need for mediators for mandatory
10foreclosure mediation in the circuit. The chief judge of each
11circuit shall only appoint as a mediator an attorney licensed
12in Illinois who practices or who is employed in the circuit and
13who has experience or training as a mediator or who has
14experience in bankruptcy law, real estate law, or banking law.
15The chief judge of each circuit shall create, and update as
16appropriate, the list of mediators and supply the list to the
17circuit clerk. Each chief judge, directly or through a
18designated judge or court administrator, shall supervise and
19approve the hours spent by each mediator on each mediation and
20approve the payment to each mediator according to fee and
21charge schedules adopted by the chief judge.
22    (c) Notwithstanding any provision in this Section to the
23contrary, a mortgagor who is delinquent by more than 45 days
24may file with the circuit clerk for the county in which the
25mortgagor's residential real estate is located a petition for
26mandatory foreclosure mediation that includes substantially



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1the following information about the mortgagor's residential
2real estate:
3        (1) Mortgagor or homeowner. Name, mailing address,
4    telephone number, fax number, and email address, if
5    applicable, of each person who is a mortgagor.
6        (2) Bank or lender. Name, mailing address, contact
7    person, telephone number, fax number, and email address, if
8    applicable, of each entity that is a mortgagee.
9        (3) Servicer, if any. Name, mailing address, contact
10    person, telephone number, fax number, and email address, if
11    applicable, of each servicer that acts on behalf of a
12    mortgagee.
13        (4) Loan or account number. The name on the mortgage
14    loan account and the account number for the mortgage loan
15    serviced by the mortgagee or the servicer.
16        (5) Property description. The street address of the
17    mortgaged residential real estate. Also include, if
18    available, the legal description of the property.
19        (6) Loan document. Attach a copy of any document that
20    the mortgagor has received from the mortgagee or the
21    servicer concerning the mortgage loan (for verification of
22    some of the information requested in items (1) through
23    (5)).
24        (7) Loan delinquency. A statement by the mortgagor that
25    the mortgage loan is delinquent by 45 days or more.
26        (8) Accurate statements. The mortgagor shall swear or



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1    affirm that the information contained in the petition is
2    true and accurate to the best of the mortgagor's knowledge.
3        (9) Signature. The signature of the mortgagor (or the
4    signature of at least one mortgagor if there is more than
5    one mortgagor).
6The clerk, upon receipt of the mortgagor's petition, shall send
7by U.S. mail a copy of the mortgagor's petition to each
8mortgagee or servicer identified by the mortgagor in the
10    (d) Except for mortgages secured by residential real estate
11in which any mortgagor has filed for relief under the United
12States Bankruptcy Code, if a mortgage secured by residential
13real estate becomes delinquent by more than 60 days and the
14mortgagee has determined that it intends to file a complaint to
15foreclose the mortgage, the mortgagee shall file a mandatory
16foreclosure mediation notice with the circuit clerk for the
17county in which the residential real estate is located and the
18mortgagee shall also send by first class mail to the mortgagor
19a copy of the notice. The mandatory foreclosure mediation
20notice shall be substantially in the form described in
21subsection (e) and shall communicate that the mortgagee intends
22to file a complaint to foreclose the mortgage, but that the
23mortgagee is required to participate in good faith in mandatory
24foreclosure mediation with the mortgagor. Notwithstanding
25anything to the contrary in this Section, nothing shall
26preclude the mortgagor and mortgagee from communicating with



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1each other during the initial 60 days of delinquency or
2reaching agreement on a mortgage modification plan, or both.
3    (e) The notice required in subsection (d) shall include the
4information described in items (1) through (5) of subsection
5(c), shall state the date on which the notice was mailed, shall
6be headed in bold 14-point type "MANDATORY FORECLOSURE
7MEDIATION NOTICE", and shall state the following in 14-point



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5The copy of the notice sent to the mortgagor, the mediator, and
6the counselor, shall also list the name, telephone number, fax
7number, mailing address, and email address of the
8court-appointed mediator and of the court-appointed counselor.
9No language, other than language substantially similar to the
10language prescribed in this subsection (e), shall be included
11in the notice.
12    (f) The mailing of the petition required by subsection (c)
13and the mailing of the notice required under subsection (e)
14means depositing or causing to be deposited into the United
15States mail an envelope with first-class postage prepaid that
16contains the document to be delivered. The envelopes, as
17applicable, shall be addressed as follows: (i) to the mortgagor
18at the common address of the residential real estate securing
19the mortgage; and (ii) to the mortgagee or the servicer to the
20address for that entity stated in the petition.
21    (g) Upon the filing of a petition for mandatory mediation
22by a mortgagee or the filing of a mandatory foreclosure
23mediation notice by a mortgagor, the mortgagee shall freeze the
24mortgagor's account. From the date of the filing of a petition
25for mandatory mediation or the filing of a mandatory
26foreclosure mediation notice, any obligation on the mortgagor



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1to pay to the mortgagee or its agent or employee any
2installment on the mortgage loan or to pay any type of
3additional charge, fee, or penalty of any type is stayed,
4without bond or further notice, until a final mortgage
5modification plan is reached or the mediator's written report
6is filed with the clerk and at that time the stay is lifted and
7the balance owed by the mortgagor as of the time of the
8freezing of the mortgagor's account shall again be due,
9however, neither the mortgagee or the servicer may assess, post
10to the account, or collect in any manner any charge, fee, or
11penalty of any type for the period between the initial filing
12and the end of the stay.
13    (h) Upon the filing of a mortgagor's petition for mandatory
14foreclosure or a mortgagee's mandatory foreclosure mediation
15notice, the circuit clerk shall randomly assign to the
16mediation involving the subject residential real estate a
17mediator from the list of court-appointed mediators received
18from the chief judge of the circuit. So as to avoid conflicts
19of interest, each court-appointed mediator shall, upon
20appointment, notify the clerk of the name of any person or
21entity that employs the attorney or that the attorney
22represents that is a mortgagor, mortgagee, or servicer on a
23mortgage on real property that is located in the circuit. The
24clerk shall not assign a matter for mediation to a mediator if
25the mediator has identified as an employer or as a client, any
26person or entity which is a mortgagor, mortgagee, or servicer



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1in the matter to be mediated. Nothing in this subsection shall
2limit a mediator from declining to mediate a matter for any
3other legitimate or ethical reason as soon as practicable; if a
4mediator declines to serve as a mediator in a mediation, the
5mediator shall promptly notify the clerk so that another
6mediator may be assigned to the mediation. The clerk shall
7also, at the time of the assignment of the mediator, assign to
8that mediation a counselor from an approved counseling agency
9from a list submitted by the chief judge from names submitted
10to the chief judge by approved counseling agencies that offer
11services in that circuit. A counselor shall decline to serve in
12the mediation if there would be a conflict of interest for the
13counselor to do so. Nothing in this subsection shall limit a
14counselor from declining to serve in a mediation for any
15legitimate or ethical reason as soon as practicable; if a
16counselor declines to serve as a counselor in a mediation, the
17counselor shall promptly notify the clerk so that another
18counselor may be assigned to the mediation.
19    (i) The court-appointed mediator must convene a mediation
20session with all participants within 45 days after the date of
21the mediator's appointment and notify the mortgagor, the
22mortgagee, any servicer, and the counselor of the location,
23date, and period of time established for the mediation. Upon
24receipt of the notice of the mediation, the counselor shall
25notify the mortgagor of the information and documents that the
26mortgagor must supply to the counselor. The mortgagor must



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1supply all requested information and documents to the counselor
2at least 72 hours prior to the scheduled mediation session,
3except for good cause shown. The number of mediation meetings,
4not to exceed 3 meetings, and the time and location of each
5meeting shall be set by the mediator. The mediation shall
6conclude with a final mortgage modification plan or a
7mediator's report that concludes that there is no just reason
8for the mortgagee not to initiate foreclosure proceedings.
9However, if the mediation has not concluded within 90 days
10after the date of the mediator's appointment with either a
11final mortgage modification plan or a mediator's written report
12concluding that there is no just reason for the mortgagee not
13to initiate foreclosure proceedings, then the mortgagee shall
14be assessed a fine of $25 per day for each day that passes
15until there is a final plan or the mediator issues a written
16report that concludes that there is no just reason for the
17mortgagee not to initiate foreclosure proceedings. A mortgagee
18with any daily fine due in conjunction with the mediation shall
19pay to the clerk the amount due for the prior month by the
20fifth day of each month. The clerk shall remit the fine to the
21State Treasurer as provided in this Section to be expended for
22the purposes set forth in this Act. All fines paid by a
23mortgagee to the clerk of the court as provided in this Section
24shall be disbursed within 60 days after receipt by the clerk of
25the court as follows: (i) 98% to the State Treasurer for
26deposit into the Mandatory Foreclosure Mediation Fund, and (ii)



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12% to the clerk of the court for administrative expenses
2related to implementation of this Section.
3    (j) Except in the circumstance in which a mortgagor has
4filed a petition for relief under the United States Bankruptcy
5Code, no mortgagee shall file a complaint to foreclose a
6mortgage secured by residential real estate without attaching
7the required mediator's written report.
8    (k) Notwithstanding any other provision to the contrary,
9with respect to a particular mortgage secured by residential
10real estate, the procedures and forbearances described in this
11Section apply only once per subject mortgage.
12    (l) No foreclosure action under Part 15 of Article XV of
13this Code shall be instituted on a mortgage secured by
14residential real estate before a mandatory foreclosure
15mediation has been held and the court-appointed mediator who
16presided over that mediation has issued a written report that:
17        (1) describes the mediation process as it involved the
18    mortgagee and the mortgagor;
19        (2) if applicable, describes a party's refusal to
20    attend any part of the mediation process or a party's
21    refusal to act in good faith in the mediation process;
22        (3) states that at least one mediation session was
23    conducted with all of the required participants (the
24    mortgagor, the mortgagee, the servicer (if applicable), a
25    counselor, and the mediator) present or the reason that
26    there was not at least one mediation session conducted;



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1        (4) states each date on which a mediation session was
2    held by the mediator with all of the required participants
3    present;
4        (5) determines that, while at the mediation session,
5    the mortgagor and the mortgagee each had the authority to
6    make binding decisions in any discussions of any loan
7    modification or, if a party did not have binding
8    decision-making authority, why that party did not have that
9    authority;
10        (6) whether during the mediation process the counselor
11    with an approved counseling agency prepared an assessment
12    or report providing available loan work-out options for the
13    mortgagor and mortgagee, or, if not, why that assessment or
14    report was not prepared;
15        (7) states the mortgagor's income and expense
16    information, if available from the mortgagor;
17        (8) states the mortgagor's employment status, if
18    available from the mortgagor;
19        (9) states the mortgagor's qualifications for any
20    available governmental or private work-out program;
21        (10) if applicable, states the initial positions taken
22    by the mortgagee and the mortgagor in the mediation and
23    what changes during the mediation that each party made in
24    that party's initial position;
25        (11) explains the reasons that a final mortgage
26    modification plan was not able to be agreed to by the



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1    mortgagee and the mortgagor;
2        (12) states whether, in the mediator's opinion, the
3    mortgagor and the mortgagee each participated in good faith
4    in the mediation; and
5        (13) determines, in light of all of the relevant
6    circumstances pertaining to the mortgagor, that in the
7    mediator's opinion the mortgagee acted in good faith and
8    that there is no just reason for the mortgagee not to file
9    foreclosure as to the mortgaged real estate.
10    (m) If mandatory foreclosure mediation results in an
11agreement between the mortgagee and the mortgagor for a final
12plan, then no legal action under Part 15 of Article XV of this
13Code shall be instituted for as long as the final plan is
14complied with by the mortgagor.
15    (n) After the mediation concludes, any modifications to the
16final plan must be in writing and signed by the mortgagee and
17the mortgagor.
18    (o) If the mortgagor fails to comply with the final plan,
19then nothing in this Section shall be construed to impair the
20legal rights of the mortgagee to enforce the contract.
21    (p) A counselor employed by a housing counseling agency or
22the housing counseling agency that in good faith provides
23counseling shall not be liable to a mortgagee or mortgagor for
24civil damages, except for willful or wanton misconduct on the
25part of the counselor in providing the counseling.
26    (q) There shall be no waiver of any provision of this



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2    (r) It is the General Assembly's intent that compliance
3with this Section shall not prejudice a mortgagee in ratings of
4its bad debt collection or calculation standards or policies.
5    (s) This Section shall not apply, or shall cease to apply,
6to residential real estate that is not occupied as a principal
7residence by the mortgagor.
8    (735 ILCS 5/15-1504)  (from Ch. 110, par. 15-1504)
9    Sec. 15-1504. Pleadings and service.
10    (a) Form of Complaint. A foreclosure complaint may be in
11substantially the following form:
12        (1) Plaintiff files this complaint to foreclose the
13    mortgage (or other conveyance in the nature of a mortgage)
14    (hereinafter called "mortgage") hereinafter described and
15    joins the following person as defendants: (here insert
16    names of all defendants).
17        (2) Attached as Exhibit "A" is a copy of the mortgage
18    and as Exhibit "B" is a copy of the note secured thereby.
19        (3) Information concerning mortgage:
20            (A) Nature of instrument: (here insert whether a
21        mortgage, trust deed or other instrument in the nature
22        of a mortgage, etc.)
23            (B) Date of mortgage:
24            (C) Name of mortgagor:
25            (D) Name of mortgagee:



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1            (E) Date and place of recording:
2            (F) Identification of recording: (here insert book
3        and page number or document number)
4            (G) Interest subject to the mortgage: (here insert
5        whether fee simple, estate for years, undivided
6        interest, etc.)
7            (H) Amount of original indebtedness, including
8        subsequent advances made under the mortgage:
9            (I) Both the legal description of the mortgaged
10        real estate and the common address or other information
11        sufficient to identify it with reasonable certainty:
12            (J) Statement as to defaults, including, but not
13        necessarily limited to, date of default, current
14        unpaid principal balance, per diem interest accruing,
15        and any further information concerning the default:
16            (K) Name of present owner of the real estate:
17            (L) Names of other persons who are joined as
18        defendants and whose interest in or lien on the
19        mortgaged real estate is sought to be terminated:
20            (M) Names of defendants claimed to be personally
21        liable for deficiency, if any:
22            (N) Capacity in which plaintiff brings this
23        foreclosure (here indicate whether plaintiff is the
24        legal holder of the indebtedness, a pledgee, an agent,
25        the trustee under a trust deed or otherwise, as
26        appropriate):



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1            (O) Facts in support of redemption period shorter
2        than the longer of (i) 7 months from the date the
3        mortgagor or, if more than one, all the mortgagors (I)
4        have been served with summons or by publication or (II)
5        have otherwise submitted to the jurisdiction of the
6        court, or (ii) 3 months from the entry of the judgment
7        of foreclosure, if sought (here indicate whether based
8        upon the real estate not being residential,
9        abandonment, or real estate value less than 90% of
10        amount owed, etc.):
11            (P) Statement that the right of redemption has been
12        waived by all owners of redemption, if applicable:
13            (Q) Facts in support of request for attorneys' fees
14        and of costs and expenses, if applicable:
15            (R) Facts in support of a request for appointment
16        of mortgagee in possession or for appointment of
17        receiver, and identity of such receiver, if sought:
18            (S) Offer to mortgagor in accordance with Section
19        15-1402 to accept title to the real estate in
20        satisfaction of all indebtedness and obligations
21        secured by the mortgage without judicial sale, if
22        sought:
23            (T) Name or names of defendants whose right to
24        possess the mortgaged real estate, after the
25        confirmation of a foreclosure sale, is sought to be
26        terminated and, if not elsewhere stated, the facts in



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1        support thereof:
2        (4) (Applies only to a complaint for foreclosure of
3    residential real estate.) Attached as Exhibit C is the
4    mandatory foreclosure mediation report from the
5    court-appointed mediator concerning the mandatory
6    mediation which was conducted pursuant to Section
7    15-1502.7 and which, in conjunction with the other matters
8    required by subsection (l) of Section 15-1502.7: explains
9    the reasons that a loan modification was not able to be
10    agreed to by the plaintiff and the defendant mortgagor;
11    concludes that, in the mediator's opinion, the mortgagee
12    participated in good faith in the mediation; and determines
13    that, in light of all of the relevant circumstances
14    pertaining to the mortgagor, in the mediator's opinion,
15    there is no just reason for the plaintiff not to file
16    foreclosure as to the mortgaged real estate.
18    Plaintiff requests:
19        (i) A judgment of foreclosure and sale.
20        (ii) An order granting a shortened redemption period,
21    if sought.
22        (iii) A personal judgment for a deficiency, if sought.
23        (iv) An order granting possession, if sought.
24        (v) An order placing the mortgagee in possession or
25    appointing a receiver, if sought.



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1        (vi) A judgment for attorneys' fees, costs and
2    expenses, if sought.
3    (b) Required Information. A foreclosure complaint need
4contain only such statements and requests called for by the
5form set forth in subsection (a) of Section 15-1504 as may be
6appropriate for the relief sought. Such complaint may be filed
7as a counterclaim, may be joined with other counts or may
8include in the same count additional matters or a request for
9any additional relief permitted by Article II of the Code of
10Civil Procedure.
11    (c) Allegations. The statements contained in a complaint in
12the form set forth in subsection (a) of Section 15-1504 are
13deemed and construed to include allegations as follows:
14        (1) on the date indicated the obligor of the
15    indebtedness or other obligations secured by the mortgage
16    was justly indebted in the amount of the indicated original
17    indebtedness to the original mortgagee or payee of the
18    mortgage note;
19        (2) that the exhibits attached are true and correct
20    copies of the mortgage and note and are incorporated and
21    made a part of the complaint by express reference;
22        (3) that the mortgagor was at the date indicated an
23    owner of the interest in the real estate described in the
24    complaint and that as of that date made, executed and
25    delivered the mortgage as security for the note or other
26    obligations;



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1        (4) that the mortgage was recorded in the county in
2    which the mortgaged real estate is located, on the date
3    indicated, in the book and page or as the document number
4    indicated;
5        (5) that defaults occurred as indicated;
6        (6) that at the time of the filing of the complaint the
7    persons named as present owners are the owners of the
8    indicated interests in and to the real estate described;
9        (7) that the mortgage constitutes a valid, prior and
10    paramount lien upon the indicated interest in the mortgaged
11    real estate, which lien is prior and superior to the right,
12    title, interest, claim or lien of all parties and nonrecord
13    claimants whose interests in the mortgaged real estate are
14    sought to be terminated;
15        (8) that by reason of the defaults alleged, if the
16    indebtedness has not matured by its terms, the same has
17    become due by the exercise, by the plaintiff or other
18    persons having such power, of a right or power to declare
19    immediately due and payable the whole of all indebtedness
20    secured by the mortgage;
21        (9) that any and all notices of default or election to
22    declare the indebtedness due and payable or other notices
23    required to be given have been duly and properly given;
24        (10) that any and all periods of grace or other period
25    of time allowed for the performance of the covenants or
26    conditions claimed to be breached or for the curing of any



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1    breaches have expired;
2        (11) that the amounts indicated in the statement in the
3    complaint are correctly stated and if such statement
4    indicates any advances made or to be made by the plaintiff
5    or owner of the mortgage indebtedness, that such advances
6    were, in fact, made or will be required to be made, and
7    under and by virtue of the mortgage the same constitute
8    additional indebtedness secured by the mortgage; and
9        (12) that, upon confirmation of the sale, the holder of
10    the certificate of sale or deed issued pursuant to that
11    certificate or, if no certificate or deed was issued, the
12    purchaser at the sale will be entitled to full possession
13    of the mortgaged real estate against the parties named in
14    clause (T) of paragraph (3) of subsection (a) of Section
15    15-1504 or elsewhere to the same effect; the omission of
16    any party indicates that plaintiff will not seek a
17    possessory order in the order confirming sale unless the
18    request is subsequently made under subsection (h) of
19    Section 15-1701 or by separate action under Article 9 of
20    this Code.
21    (d) Request for Fees and Costs. A statement in the
22complaint that plaintiff seeks the inclusion of attorneys' fees
23and of costs and expenses shall be deemed and construed to
24include allegations that:
25        (1) plaintiff has been compelled to employ and retain
26    attorneys to prepare and file the complaint and to



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1    represent and advise the plaintiff in the foreclosure of
2    the mortgage and the plaintiff will thereby become liable
3    for the usual, reasonable and customary fees of the
4    attorneys in that behalf;
5        (2) that the plaintiff has been compelled to advance or
6    will be compelled to advance, various sums of money in
7    payment of costs, fees, expenses and disbursements
8    incurred in connection with the foreclosure, including,
9    without limiting the generality of the foregoing, filing
10    fees, stenographer's fees, witness fees, costs of
11    publication, costs of procuring and preparing documentary
12    evidence and costs of procuring abstracts of title, Torrens
13    certificates, foreclosure minutes and a title insurance
14    policy;
15        (3) that under the terms of the mortgage, all such
16    advances, costs, attorneys' fees and other fees, expenses
17    and disbursements are made a lien upon the mortgaged real
18    estate and the plaintiff is entitled to recover all such
19    advances, costs, attorneys' fees, expenses and
20    disbursements, together with interest on all advances at
21    the rate provided in the mortgage, or, if no rate is
22    provided therein, at the statutory judgment rate, from the
23    date on which such advances are made;
24        (4) that in order to protect the lien of the mortgage,
25    it may become necessary for plaintiff to pay taxes and
26    assessments which have been or may be levied upon the



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1    mortgaged real estate;
2        (5) that in order to protect and preserve the mortgaged
3    real estate, it may also become necessary for the plaintiff
4    to pay liability (protecting mortgagor and mortgagee),
5    fire and other hazard insurance premiums on the mortgaged
6    real estate, make such repairs to the mortgaged real estate
7    as may reasonably be deemed necessary for the proper
8    preservation thereof, advance for costs to inspect the
9    mortgaged real estate or to appraise it, or both, and
10    advance for premiums for pre-existing private or
11    governmental mortgage insurance to the extent required
12    after a foreclosure is commenced in order to keep such
13    insurance in force; and
14        (6) that under the terms of the mortgage, any money so
15    paid or expended will become an additional indebtedness
16    secured by the mortgage and will bear interest from the
17    date such monies are advanced at the rate provided in the
18    mortgage, or, if no rate is provided, at the statutory
19    judgment rate.
20    (e) Request for Foreclosure. The request for foreclosure is
21deemed and construed to mean that the plaintiff requests that:
22        (1) an accounting may be taken under the direction of
23    the court of the amounts due and owing to the plaintiff;
24        (2) that the defendants be ordered to pay to the
25    plaintiff before expiration of any redemption period (or,
26    if no redemption period, before a short date fixed by the



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1    court) whatever sums may appear to be due upon the taking
2    of such account, together with attorneys' fees and costs of
3    the proceedings (to the extent provided in the mortgage or
4    by law);
5        (3) that in default of such payment in accordance with
6    the judgment, the mortgaged real estate be sold as directed
7    by the court, to satisfy the amount due to the plaintiff as
8    set forth in the judgment, together with the interest
9    thereon at the statutory judgment rate from the date of the
10    judgment;
11        (4) that in the event the plaintiff is a purchaser of
12    the mortgaged real estate at such sale, the plaintiff may
13    offset against the purchase price of such real estate the
14    amounts due under the judgment of foreclosure and order
15    confirming the sale;
16        (5) that in the event of such sale and the failure of
17    any person entitled thereto to redeem prior to such sale
18    pursuant to this Article, the defendants made parties to
19    the foreclosure in accordance with this Article, and all
20    nonrecord claimants given notice of the foreclosure in
21    accordance with this Article, and all persons claiming by,
22    through or under them, and each and any and all of them,
23    may be forever barred and foreclosed of any right, title,
24    interest, claim, lien, or right to redeem in and to the
25    mortgaged real estate; and
26        (6) that if no redemption is made prior to such sale, a



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1    deed may be issued to the purchaser thereat according to
2    law and such purchaser be let into possession of the
3    mortgaged real estate in accordance with Part 17 of this
4    Article.
5    (f) Request for Deficiency Judgment. A request for a
6personal judgment for a deficiency in a foreclosure complaint
7if the sale of the mortgaged real estate fails to produce a
8sufficient amount to pay the amount found due, the plaintiff
9may have a personal judgment against any party in the
10foreclosure indicated as being personally liable therefor and
11the enforcement thereof be had as provided by law.
12    (g) Request for Possession or Receiver. A request for
13possession or appointment of a receiver has the meaning as
14stated in subsection (b) of Section 15-1706.
15    (h) Answers by Parties. Any party may assert its interest
16by counterclaim and such counterclaim may at the option of that
17party stand in lieu of answer to the complaint for foreclosure
18and all counter complaints previously or thereafter filed in
19the foreclosure. Any such counterclaim shall be deemed to
20constitute a statement that the counter claimant does not have
21sufficient knowledge to form a belief as to the truth or
22falsity of the allegations of the complaint and all other
23counterclaims, except to the extent that the counterclaim
24admits or specifically denies such allegations.
25(Source: P.A. 91-357, eff. 7-29-99.)



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1    (735 ILCS 5/15-1504.2 new)
2    Sec. 15-1504.2. Filing fee for Mandatory Foreclosure
3Mediation Fund.
4    (a) With respect to residential real estate, at the time of
5the filing of a foreclosure complaint, the plaintiff shall pay
6to the clerk of the court in which the foreclosure complaint is
7filed a fee of $100 for deposit into the Mandatory Foreclosure
8Mediation Fund, a special fund created in the State treasury.
9The clerk shall remit the fee to the State Treasurer as
10provided in this Section. Moneys in the Fund shall be expended
11for mandatory foreclosure mediation under Section 15-1502.7
12and for expenses related to administration of mandatory
13foreclosure mediation. The clerk shall report monthly to the
14Administrative Office of the Illinois Courts, on forms
15prescribed by the Administrative Office of the Illinois Courts,
16the mandatory foreclosure mediation filing fees received and
17the fines paid pursuant to subsection (i) of Section 15-1502.7.
18All fees paid by plaintiffs to the clerk of the court as
19provided in this Section shall be disbursed within 60 days
20after receipt by the clerk of the court as follows: (i) 98% to
21the State Treasurer for deposit into the Mandatory Foreclosure
22Mediation Fund, and (ii) 2% to the clerk of the court for
23administrative expenses related to implementation of this
24Section and Section 15-1502.7.
25    (b) Not later than March 1 of each year, the Administrative
26Office of the Illinois Courts shall submit to the General



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1Assembly a report of the funds collected and remitted pursuant
2to this Section during the preceding year.
3    Section 10. The State Finance Act is amended by adding
4Section 5.811 as follows:
5    (30 ILCS 105/5.811 new)
6    Sec. 5.811. The Mandatory Foreclosure Mediation Fund.
7    Section 99. Effective date. This Act takes effect upon
8becoming law.



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2 Statutes amended in order of appearance
3    735 ILCS 5/15-1502.7 new
4    735 ILCS 5/15-1504from Ch. 110, par. 15-1504
5    735 ILCS 5/15-1504.2 new
6    30 ILCS 105/5.811 new