Full Text of SB2534 97th General Assembly
SB2534 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2534 Introduced 11/29/2011, by Sen. A. J. Wilhelmi SYNOPSIS AS INTRODUCED: |
| 735 ILCS 5/15-1200.5 new | | 735 ILCS 5/15-1504 | from Ch. 110, par. 15-1504 | 735 ILCS 5/15-1505.8 new | | 735 ILCS 5/15-1508 | from Ch. 110, par. 15-1508 | 735 ILCS 5/15-1603 | from Ch. 110, par. 15-1603 | 735 ILCS 5/15-1701 | from Ch. 110, par. 15-1701 |
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Amends the Code of Civil Procedure. Adds to the mortgage foreclosure provisions a definition of "abandoned residential property". Provides requirement and procedures for an expedited judgment and sale of abandoned residential property. Provides that the period of redemption ends for abandoned residential property on the date of the judgment confirming the judicial sale.
Makes other 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 15-1504, 15-1508, 15-1603, and 15-1701 and by | 6 | | adding Sections 15-1200.5 and 15-1505.8 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 that upon | 10 | | inspection is not occupied by any mortgagor or bona fide tenant | 11 | | as a principal residence, and with respect to which at least 2 | 12 | | of the following conditions or circumstances are shown to | 13 | | exist: | 14 | | (1) the property has had at least one uncorrected | 15 | | municipal or county building, housing, or similar code | 16 | | violation in the preceding year or has been declared unfit | 17 | | for occupancy and ordered to remain vacant and unoccupied | 18 | | by municipal or county authorities; | 19 | | (2) construction was initiated on the property and | 20 | | discontinued prior to completion and there is no valid | 21 | | municipal or county construction or building permit posted | 22 | | on the property; | 23 | | (3) gas, electric, or water utility service to the |
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| 1 | | property has been terminated; | 2 | | (4) windows or entrances to the property are boarded up | 3 | | or closed off or multiple window panes are broken and | 4 | | unrepaired; | 5 | | (5) doors to the property are smashed through, broken | 6 | | off, unhinged, or continuously unlocked; | 7 | | (6) rubbish, trash, garbage, debris, graffiti, | 8 | | neglected weeds, grass, trees, bushes, or other nuisance | 9 | | greenery, or other hazardous, noxious, or unhealthy | 10 | | substances or materials, have accumulated on the property; | 11 | | (7) the police or sheriff's office has received at | 12 | | least one report of trespassing, vandalism, or other | 13 | | illegal activity being committed on the property in the | 14 | | preceding year; | 15 | | (8) pursuant to the terms of the mortgage, the | 16 | | mortgagee has posted a pre-foreclosure notice of the | 17 | | mortgagee's intent to enter the property for purposes of | 18 | | maintaining or repairing it and, upon entering the property | 19 | | following the posting of the notice and a lack of response | 20 | | by the mortgagor, has found the property unoccupied; | 21 | | (9) the mortgagee or other interested or authorized | 22 | | party has secured or winterized the property due to the | 23 | | property being deemed vacant and unprotected or in danger | 24 | | of freezing; | 25 | | (10) any mortgagor or any mortgagor's personal | 26 | | representatives or assigns have issued an oral or written |
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| 1 | | statement expressing the clear intent of all mortgagors to | 2 | | abandon the property; | 3 | | (11) any property manager or other person conducting an | 4 | | inspection of the property has issued an oral or written | 5 | | statement indicating all mortgagors or bona fide tenants | 6 | | have moved out and vacated the property; | 7 | | (12) the property is a vacant lot; | 8 | | (13) the property is deteriorating and is either below | 9 | | or is in imminent danger of falling below minimum municipal | 10 | | or county government standards for public safety and | 11 | | sanitation; or | 12 | | (14) any other reasonable indicia of abandonment.
| 13 | | (735 ILCS 5/15-1504) (from Ch. 110, par. 15-1504)
| 14 | | Sec. 15-1504. Pleadings and service.
| 15 | | (a) Form of Complaint. A foreclosure complaint
may be in | 16 | | substantially the following form:
| 17 | | (1) Plaintiff files this complaint to foreclose the | 18 | | mortgage (or other
conveyance in the nature of a mortgage) | 19 | | (hereinafter called "mortgage")
hereinafter described and | 20 | | joins the following person as defendants: (here
insert | 21 | | names of all defendants).
| 22 | | (2) Attached as Exhibit "A" is a copy of the mortgage | 23 | | and as Exhibit "B"
is a copy of the note secured thereby.
| 24 | | (3) Information concerning mortgage:
| 25 | | (A) Nature of instrument: (here insert whether a |
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| 1 | | mortgage, trust deed or
other instrument in the nature | 2 | | of a mortgage, etc.)
| 3 | | (B) Date of mortgage:
| 4 | | (C) Name of mortgagor:
| 5 | | (D) Name of mortgagee:
| 6 | | (E) Date and place of recording:
| 7 | | (F) Identification of recording: (here insert book | 8 | | and page number or document number)
| 9 | | (G) Interest subject to the mortgage: (here insert | 10 | | whether fee simple,
estate for years, undivided | 11 | | interest, etc.)
| 12 | | (H) Amount of original indebtedness, including | 13 | | subsequent advances made
under the mortgage:
| 14 | | (I) Both the legal description of the mortgaged | 15 | | real estate and the
common address or other information | 16 | | sufficient to identify it with reasonable certainty:
| 17 | | (J) Statement as to defaults, including, but not | 18 | | necessarily
limited to, date of default, current | 19 | | unpaid principal balance, per diem
interest accruing, | 20 | | and any further information concerning the default:
| 21 | | (K) Name of present owner of the real estate:
| 22 | | (L) Names of other persons who are joined as | 23 | | defendants and whose
interest in or lien on the | 24 | | mortgaged real estate is sought to be terminated:
| 25 | | (M) Names of defendants claimed to be personally | 26 | | liable
for deficiency, if any:
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| 1 | | (N) Capacity in which plaintiff brings this | 2 | | foreclosure (here indicate
whether plaintiff is the | 3 | | legal holder of the indebtedness, a pledgee, an
agent, | 4 | | the trustee under a trust deed or otherwise, as | 5 | | appropriate):
| 6 | | (O) Facts in support of redemption period shorter | 7 | | than
the longer of (i) 7 months from the date the | 8 | | mortgagor or, if more than
one, all the mortgagors (I) | 9 | | have been served with summons or by publication
or (II) | 10 | | have otherwise submitted to the jurisdiction of the | 11 | | court, or (ii)
3 months from the entry of the judgment | 12 | | of foreclosure, if sought (here
indicate whether based | 13 | | upon the real estate not being residential ,
| 14 | | abandonment, or real estate value less than 90%
of | 15 | | amount owed, etc.):
| 16 | | (P) Statement that the right of redemption has been | 17 | | waived by all
owners of redemption, if applicable:
| 18 | | (Q) Facts in support of request for attorneys' fees | 19 | | and of costs and
expenses, if applicable:
| 20 | | (R) Facts in support of a request for appointment | 21 | | of mortgagee in
possession or for appointment of | 22 | | receiver, and identity of such receiver, if
sought:
| 23 | | (S) Offer to mortgagor in accordance with Section | 24 | | 15-1402 to accept
title to the real estate in | 25 | | satisfaction of all indebtedness and
obligations | 26 | | secured by the mortgage without judicial sale, if |
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| 1 | | sought:
| 2 | | (T) Name or names of defendants whose right to
| 3 | | possess the mortgaged real estate, after the | 4 | | confirmation of a foreclosure
sale, is
sought to be | 5 | | terminated and, if not elsewhere stated, the facts in | 6 | | support
thereof:
| 7 | | REQUEST FOR RELIEF
| 8 | | Plaintiff requests:
| 9 | | (i) A judgment of foreclosure and sale.
| 10 | | (ii) An order granting a shortened redemption period, | 11 | | if sought.
| 12 | | (iii) A personal judgment for a deficiency, if sought.
| 13 | | (iv) An order granting possession, if sought.
| 14 | | (v) An order placing the mortgagee in possession or | 15 | | appointing a receiver,
if sought.
| 16 | | (vi) A judgment for attorneys' fees, costs and | 17 | | expenses, if sought.
| 18 | | (b) Required Information. A foreclosure complaint need | 19 | | contain only such
statements and requests called for by the | 20 | | form set forth in subsection (a) of
Section
15-1504 as may be | 21 | | appropriate for the relief sought. Such complaint may
be filed | 22 | | as a counterclaim, may be joined with other counts or may | 23 | | include
in the same count additional matters or a request for | 24 | | any additional
relief permitted by Article
II of the Code of | 25 | | Civil Procedure.
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| 1 | | (c) Allegations. The statements contained in a complaint in | 2 | | the form
set forth in subsection (a) of Section 15-1504 are | 3 | | deemed and construed to include
allegations as follows:
| 4 | | (1) on the date indicated the obligor of the | 5 | | indebtedness or other
obligations secured by the mortgage | 6 | | was justly indebted in the amount of
the indicated original | 7 | | indebtedness to the original mortgagee or payee of
the | 8 | | mortgage note;
| 9 | | (2) that the exhibits attached are true and correct | 10 | | copies of the
mortgage and note and are incorporated and | 11 | | made a part of the complaint by
express reference;
| 12 | | (3) that the mortgagor was at the date indicated an | 13 | | owner of the
interest in the real estate described in the | 14 | | complaint and that as of that
date made, executed and | 15 | | delivered the mortgage as security for the note or
other | 16 | | obligations;
| 17 | | (4) that the mortgage was recorded in the county in | 18 | | which the mortgaged
real estate is located, on the date | 19 | | indicated, in the book and page or as
the document number | 20 | | indicated;
| 21 | | (5) that defaults occurred as indicated;
| 22 | | (6) that at the time of the filing of the complaint the | 23 | | persons named as
present owners are the owners of the | 24 | | indicated interests in and to the real
estate described;
| 25 | | (7) that the mortgage constitutes a valid, prior and | 26 | | paramount lien upon
the indicated interest in the mortgaged |
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| 1 | | real estate, which lien is prior and
superior to the right, | 2 | | title, interest, claim or lien of all parties and
nonrecord | 3 | | claimants whose interests in the mortgaged real estate are
| 4 | | sought to be terminated;
| 5 | | (8) that by reason of the defaults alleged, if the | 6 | | indebtedness has not
matured by its terms, the same has | 7 | | become due by the exercise, by the
plaintiff or other | 8 | | persons having such power, of a right or power to
declare | 9 | | immediately due and payable the whole of all indebtedness | 10 | | secured
by the mortgage;
| 11 | | (9) that any and all notices of default or election to | 12 | | declare the
indebtedness due and payable or other notices | 13 | | required to be given have
been duly and properly given;
| 14 | | (10) that any and all periods of grace or other period | 15 | | of time allowed
for the performance of the covenants or | 16 | | conditions claimed to be breached
or for the curing of any | 17 | | breaches have expired;
| 18 | | (11) that the amounts indicated in the statement
in the | 19 | | complaint are correctly stated and
if such statement | 20 | | indicates any advances made or to be made by the
plaintiff | 21 | | or owner of the mortgage indebtedness, that such advances | 22 | | were,
in fact, made or will be
required to be made, and | 23 | | under and by virtue of the mortgage the same
constitute | 24 | | additional indebtedness secured by the mortgage; and
| 25 | | (12) that, upon confirmation of the sale, the holder of | 26 | | the certificate
of sale or deed issued pursuant to that |
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| 1 | | certificate or, if no certificate or
deed was issued, the | 2 | | purchaser at the sale will be entitled to full possession
| 3 | | of the mortgaged real estate against the parties
named in | 4 | | clause (T) of
paragraph (3) of subsection (a) of Section | 5 | | 15-1504 or elsewhere to the same
effect;
the omission of | 6 | | any
party indicates that plaintiff will not seek a | 7 | | possessory order in the order
confirming sale unless the | 8 | | request is subsequently made under subsection (h) of
| 9 | | Section 15-1701 or by separate action under Article 9 of | 10 | | this Code.
| 11 | | (d) Request for Fees and Costs. A statement in the | 12 | | complaint that
plaintiff seeks the inclusion of attorneys' fees | 13 | | and of costs and expenses
shall be deemed and construed to | 14 | | include allegations that:
| 15 | | (1) plaintiff has been compelled to employ and retain | 16 | | attorneys to
prepare and file the complaint and to | 17 | | represent and advise the plaintiff in
the foreclosure of | 18 | | the mortgage and the plaintiff will thereby become
liable | 19 | | for the usual, reasonable and customary fees of the | 20 | | attorneys in
that behalf;
| 21 | | (2) that the plaintiff has been compelled to advance or | 22 | | will be
compelled to advance, various sums of money in | 23 | | payment of costs, fees,
expenses and disbursements | 24 | | incurred in connection with the foreclosure,
including, | 25 | | without limiting the generality of the foregoing, filing | 26 | | fees,
stenographer's fees, witness fees, costs of |
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| 1 | | publication, costs of procuring
and preparing documentary | 2 | | evidence and costs of procuring
abstracts of title, Torrens | 3 | | certificates, foreclosure minutes and a title
insurance | 4 | | policy;
| 5 | | (3) that under the terms of the mortgage, all such | 6 | | advances, costs,
attorneys' fees and other fees, expenses | 7 | | and disbursements are made a lien
upon the mortgaged real | 8 | | estate and the plaintiff is entitled to recover all
such | 9 | | advances, costs, attorneys' fees, expenses and | 10 | | disbursements, together
with interest on all advances at | 11 | | the rate provided in the mortgage, or, if
no rate is | 12 | | provided therein, at the statutory judgment rate, from the
| 13 | | date on which such advances are made;
| 14 | | (4) that in order to protect the lien of the mortgage, | 15 | | it may become
necessary for plaintiff to pay taxes and | 16 | | assessments which have been or may
be levied upon the | 17 | | mortgaged real estate;
| 18 | | (5) that in order to protect and preserve the mortgaged | 19 | | real estate, it
may also become necessary for the plaintiff | 20 | | to pay liability (protecting
mortgagor and mortgagee), | 21 | | fire and other hazard
insurance premiums on the mortgaged | 22 | | real estate, make such repairs
to the mortgaged real
estate | 23 | | as may reasonably be deemed necessary for the proper | 24 | | preservation
thereof, advance for costs to inspect the | 25 | | mortgaged real estate or to
appraise it, or both, and | 26 | | advance for premiums for pre-existing private or
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| 1 | | governmental mortgage insurance to the extent required | 2 | | after a foreclosure
is commenced in order to keep such | 3 | | insurance in force; and
| 4 | | (6) that under the terms of the mortgage, any money so | 5 | | paid or expended
will become an additional indebtedness | 6 | | secured by the mortgage and will bear
interest from the | 7 | | date such monies are advanced at the rate provided in the
| 8 | | mortgage, or, if no rate is provided, at the
statutory | 9 | | judgment rate.
| 10 | | (e) Request for Foreclosure. The request for foreclosure is | 11 | | deemed and
construed to mean that the plaintiff requests that:
| 12 | | (1) an accounting may be taken under the direction of | 13 | | the court of the
amounts due and owing to the plaintiff;
| 14 | | (2) that the defendants be ordered to pay to the | 15 | | plaintiff before
expiration of any redemption period (or, | 16 | | if no redemption period, before a
short date fixed by the | 17 | | court) whatever sums may appear to be due upon the taking
| 18 | | of such account,
together with attorneys' fees and costs of | 19 | | the proceedings (to the extent
provided in the mortgage or | 20 | | by law);
| 21 | | (3) that in default of such payment in accordance with | 22 | | the judgment, the
mortgaged real estate be sold as directed | 23 | | by the court, to satisfy the
amount due to the plaintiff as | 24 | | set forth in the judgment, together with the
interest | 25 | | thereon at the statutory judgment rate from the date of the | 26 | | judgment;
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| 1 | | (4) that in the event the plaintiff is a purchaser of | 2 | | the mortgaged real
estate at such sale, the plaintiff may | 3 | | offset against the purchase price of
such real estate the | 4 | | amounts due under the judgment of foreclosure and
order | 5 | | confirming the sale;
| 6 | | (5) that in the event of such sale and the failure of | 7 | | any person entitled
thereto to redeem prior to such sale | 8 | | pursuant to this Article, the
defendants made parties to | 9 | | the foreclosure in accordance with this Article,
and all | 10 | | nonrecord claimants given notice of the foreclosure in | 11 | | accordance
with this Article, and all persons claiming by, | 12 | | through or under them, and
each and any and all of them, | 13 | | may be forever barred and foreclosed of any
right, title, | 14 | | interest, claim, lien, or right to redeem in and to the
| 15 | | mortgaged real estate; and
| 16 | | (6) that if no redemption is made prior to such sale, a | 17 | | deed may be
issued to the purchaser thereat according to | 18 | | law and such purchaser be let
into possession of the | 19 | | mortgaged real estate in accordance with Part 17 of this | 20 | | Article.
| 21 | | (f) Request for Deficiency Judgment. A request for a | 22 | | personal judgment
for a deficiency in a foreclosure complaint | 23 | | if the sale of the mortgaged
real estate fails to produce a | 24 | | sufficient amount to pay the amount found
due, the plaintiff | 25 | | may have a personal judgment against any party in the
| 26 | | foreclosure indicated as being personally liable therefor and |
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| 1 | | the enforcement
thereof be had as provided by law.
| 2 | | (g) Request for Possession or Receiver. A request for | 3 | | possession or appointment
of a receiver has the meaning as | 4 | | stated in subsection (b) of Section 15-1706.
| 5 | | (h) Answers by Parties. Any party
may assert its interest | 6 | | by counterclaim and such counterclaim may at the
option of that | 7 | | party stand in lieu of answer to the complaint for
foreclosure | 8 | | and all counter complaints previously or thereafter filed
in | 9 | | the foreclosure. Any such counterclaim shall be deemed to | 10 | | constitute a
statement that the counter claimant does not have | 11 | | sufficient knowledge to
form a belief as to the truth or | 12 | | falsity of the
allegations of the complaint and all other | 13 | | counterclaims, except
to the extent that the counterclaim | 14 | | admits or specifically denies such
allegations.
| 15 | | (Source: P.A. 91-357, eff. 7-29-99.)
| 16 | | (735 ILCS 5/15-1505.8 new) | 17 | | Sec. 15-1505.8. Expedited judgment and sale procedure for | 18 | | abandoned residential property. | 19 | | (a) Upon motion and notice, the mortgagee may elect to | 20 | | utilize the expedited judgment and sale procedure for abandoned | 21 | | residential property stated in this Section to obtain a | 22 | | judgment of foreclosure pursuant to Section 15-1506. The motion | 23 | | may be combined with or made part of the motion requesting a | 24 | | judgment of foreclosure. If service upon the mortgagor was | 25 | | obtained by publication, then notice of the motion to the |
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| 1 | | mortgagor shall be posted at the property address. | 2 | | (b) The motion requesting an expedited judgment of | 3 | | foreclosure and sale may be filed by the mortgagee at the time | 4 | | the foreclosure complaint is filed or any time thereafter and | 5 | | shall be accompanied by an affidavit setting forth facts | 6 | | sufficient for the court to find that the mortgaged real estate | 7 | | is abandoned residential property. | 8 | | (c) If a motion for an expedited judgment and sale is filed | 9 | | at the time the foreclosure complaint is filed, the motion | 10 | | shall be heard by the court no later than: | 11 | | (1) 45 days after the date of service of the summons on | 12 | | the mortgagor or, if there is more than one mortgagor, no | 13 | | later than 45 days after the date of service on the last | 14 | | served mortgagor; or | 15 | | (2) 45 days after the date of first publication, if | 16 | | service of process is by publication; or | 17 | | (3) 45 days after the mortgagors have otherwise | 18 | | submitted to the jurisdiction of the court. | 19 | | (d) If a motion for an expedited judgment and sale is filed | 20 | | after the foreclosure complaint is filed, the motion shall be | 21 | | heard no later than 15 days after the motion is filed, provided | 22 | | that at least: | 23 | | (1) 30 days have transpired since service of the | 24 | | summons on the mortgagor or, if there is more than one | 25 | | mortgagor, 30 days have transpired since service on all | 26 | | mortgagors; or |
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| 1 | | (2) 30 days have transpired since the date of first | 2 | | publication, if service of process is by publication; or | 3 | | (3) 30 days have transpired since all mortgagors have | 4 | | otherwise submitted to the jurisdiction of the court. | 5 | | (e) The hearing shall be given priority by the court and | 6 | | shall be scheduled to be heard within the applicable time | 7 | | period set forth in subsection (c) or (d) of this Section. | 8 | | (f) The affidavit shall be signed by and be based upon the | 9 | | information and belief of the mortgagee, an agent of the | 10 | | mortgagee, the sheriff of the county or local law enforcement | 11 | | agency of the municipality in which the property is located, or | 12 | | a building inspector or other municipal or county official for | 13 | | the municipality or county in which the property is located. | 14 | | The affidavit shall state that the property is not occupied by | 15 | | any mortgagor or bona fide tenant as a principal residence and | 16 | | there exists at least 2 of the conditions or circumstances | 17 | | listed in Section 15-1200.5, which shall be stated in the | 18 | | affidavit. Photographic or other documentary evidence that | 19 | | demonstrates supporting facts set forth in the affidavit shall | 20 | | be attached to the affidavit. An affidavit that meets 2 of the | 21 | | specified conditions or circumstances shall be prima facie | 22 | | evidence that the property which is the subject of the | 23 | | foreclosure complaint is abandoned residential property. | 24 | | (g) The court may not find that the mortgaged real estate | 25 | | is abandoned residential property if an appearance has been | 26 | | made and an objection has been filed to the finding that the |
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| 1 | | property is abandoned residential property or if the owner | 2 | | provides evidence that the owner is working with, or making an | 3 | | attempt to work with, the mortgagee to modify the mortgage. | 4 | | (h) At the hearing on the motion requesting an expedited | 5 | | judgment and sale, and upon a finding by the court that the | 6 | | mortgaged real estate is abandoned residential property, the | 7 | | court shall immediately proceed to enter a judgment of | 8 | | foreclosure as requested in the complaint. The judgment of | 9 | | foreclosure shall include the matters identified in Section | 10 | | 15-1506. | 11 | | (i) The reinstatement period and redemption period for the | 12 | | abandoned residential property shall end in accordance with | 13 | | paragraph (b)(4) of Section 15-1603 and the property shall be | 14 | | sold at the earliest practicable time at a sale as provided in | 15 | | this Article. | 16 | | (j) A mortgagee or its agent may enter an abandoned | 17 | | residential property that is the subject of a foreclosure | 18 | | complaint for the purpose of maintaining or securing the | 19 | | property, provided that entry is not barred by an automatic | 20 | | stay issued by a bankruptcy court. A mortgagee and its agents | 21 | | shall not be held liable for any claim of negligence, civil | 22 | | trespass, or criminal trespass based upon entering the | 23 | | abandoned residential property or maintaining or securing the | 24 | | abandoned residential property. | 25 | | (k) The mortgagee shall be responsible for repairs or other | 26 | | maintenance to the abandoned residential property if it |
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| 1 | | purchases the property at the foreclosure sale held pursuant to | 2 | | Section 15-1507 and the sale is confirmed by the court pursuant | 3 | | to Section 15-1508. | 4 | | (l) Upon confirmation of the sale held pursuant to Section | 5 | | 15-1507, any personal property remaining in or upon the | 6 | | abandoned residential property shall be deemed to have been | 7 | | abandoned by the owner of such personal property and may be | 8 | | disposed of or donated by the holder of the certificate of sale | 9 | | (or, if none, by the purchaser at the sale). In the event of | 10 | | donation of any such personal property, the holder of the | 11 | | certificate of sale (or, if none, the purchaser at the sale) | 12 | | may transfer such donated property with a bill of sale. No | 13 | | mortgagee or its successors or assigns, holder of a certificate | 14 | | of sale, or purchaser at the sale shall be liable for any such | 15 | | disposal or donation of personal property. | 16 | | (m) No mortgagee shall be held liable for seeking a | 17 | | judicial determination of abandonment, if the mortgagee, upon | 18 | | information and belief at the time the motion requesting an | 19 | | expedited judgment of foreclosure and sale is filed with the | 20 | | court, makes a good faith assertion in its affidavit that | 21 | | evidence exists supporting the fact the mortgaged real estate | 22 | | is abandoned residential property. | 23 | | (735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508) | 24 | | Sec. 15-1508. Report of Sale and Confirmation of Sale. | 25 | | (a) Report. The person conducting the sale shall promptly |
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| 1 | | make a report to
the court, which report shall include a copy | 2 | | of all receipts and, if any,
certificate of sale. | 3 | | (b) Hearing. Upon motion and notice in accordance with | 4 | | court rules
applicable to motions generally, which motion shall | 5 | | not be made prior to
sale, the court shall conduct a hearing to
| 6 | | confirm the sale. Unless the court finds that (i) a notice | 7 | | required in
accordance with subsection (c) of Section 15-1507 | 8 | | was not given, (ii) the
terms of sale were unconscionable, | 9 | | (iii) the sale was conducted
fraudulently, or (iv) justice was | 10 | | otherwise not done, the court shall
then enter an order | 11 | | confirming the sale. The confirmation order shall include a | 12 | | name, address, and telephone number of the holder of the | 13 | | certificate of sale or deed issued pursuant to that certificate | 14 | | or, if no certificate or deed was issued, the purchaser, whom a | 15 | | municipality or county may contact with concerns about the real | 16 | | estate. The confirmation order may
also: | 17 | | (1) approve the mortgagee's fees and costs arising | 18 | | between the entry of
the judgment of foreclosure and the | 19 | | confirmation hearing, those costs and
fees to be allowable | 20 | | to the same extent as provided in the note and mortgage
and | 21 | | in Section 15-1504; | 22 | | (2) provide for a personal judgment against any party | 23 | | for a deficiency;
and | 24 | | (3) determine the priority of the judgments of parties | 25 | | who deferred proving
the priority pursuant to subsection | 26 | | (h) of Section 15-1506, but
the court shall not
defer |
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| 1 | | confirming the sale pending the determination of such | 2 | | priority. | 3 | | (b-3) Hearing to confirm sale of abandoned residential | 4 | | property. Upon motion and notice, which motion shall be made | 5 | | prior to the sale and heard by the court upon conclusion of the | 6 | | sale, the court shall enter an order confirming the sale of the | 7 | | abandoned residential property, unless the court finds that a | 8 | | reason set forth in items (i) through (iv) of subsection (b) of | 9 | | this Section exists for not approving the sale. The | 10 | | confirmation order also may address the matters identified in | 11 | | items (1) through (3) of subsection (b) of this Section. | 12 | | Notwithstanding anything to the contrary in subsection (h) of | 13 | | this Section, the order confirming the sale of the abandoned | 14 | | residential property shall award to the purchaser possession of | 15 | | the property as of the date of the entry of the order | 16 | | confirming the sale. | 17 | | (b-5) Notice with respect to residential real estate. With | 18 | | respect to residential real estate, the notice required under | 19 | | subsection (b) of this Section shall be sent to the mortgagor | 20 | | even if the mortgagor has previously been held in default. In | 21 | | the event the mortgagor has filed an appearance, the notice | 22 | | shall be sent to the address indicated on the appearance. In | 23 | | all other cases, the notice shall be sent to the mortgagor at | 24 | | the common address of the foreclosed property. The notice shall | 25 | | be sent by first class mail. Unless the right to possession has | 26 | | been previously terminated by the court, the notice shall |
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| 1 | | include the following language in 12-point boldface | 2 | | capitalized type: | 3 | | IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO | 4 | | REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | 5 | | POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | 6 | | ILLINOIS MORTGAGE FORECLOSURE LAW. | 7 | | (b-10) Notice of confirmation order sent to municipality or | 8 | | county. A copy of the confirmation order required under | 9 | | subsection (b) shall be sent to the municipality in which the | 10 | | foreclosed property is located, or to the county within the | 11 | | boundary of which the foreclosed property is located if the | 12 | | foreclosed property is located in an unincorporated territory. | 13 | | A municipality or county must clearly publish on its website a | 14 | | single address to which such notice shall be sent. If a | 15 | | municipality or county does not maintain a website, then the | 16 | | municipality or county must publicly post in its main office a | 17 | | single address to which such notice shall be sent. In the event | 18 | | that a municipality or county has not complied with the | 19 | | publication requirement in this subsection (b-10), then such | 20 | | notice to the municipality or county shall be provided pursuant | 21 | | to Section 2-211 of the Code of Civil Procedure. | 22 | | (c) Failure to Give Notice. If any sale is held without | 23 | | compliance with
subsection (c) of Section 15-1507 of this | 24 | | Article, any party entitled to
the notice provided for in | 25 | | paragraph (3) of that subsection
(c) who was not so notified | 26 | | may, by motion supported by affidavit
made prior to |
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| 1 | | confirmation of such sale, ask the court which entered the
| 2 | | judgment to set aside the sale. Any such party shall guarantee | 3 | | or secure by bond a bid equal to the successful bid at the | 4 | | prior sale, unless the party seeking to set aside the sale is | 5 | | the mortgagor, the real estate sold at the sale is residential | 6 | | real estate, and the mortgagor occupies the residential real | 7 | | estate at the time the motion is filed. In that event, no | 8 | | guarantee or bond shall be required of the mortgagor. Any
| 9 | | subsequent sale is subject to the same notice requirement as | 10 | | the original sale. | 11 | | (d) Validity of Sale. Except as provided in subsection (c) | 12 | | of Section
15-1508, no sale under this Article shall be held | 13 | | invalid or be set aside
because of any defect in the notice | 14 | | thereof or in the publication of the
same, or in the | 15 | | proceedings of the officer conducting the sale, except upon
| 16 | | good cause shown in a hearing pursuant to subsection (b) of | 17 | | Section
15-1508. At any time after a sale has occurred, any | 18 | | party entitled to
notice under paragraph (3) of subsection (c) | 19 | | of Section 15-1507 may recover
from the mortgagee any damages | 20 | | caused by the mortgagee's failure to comply
with such paragraph | 21 | | (3). Any party who recovers damages in a judicial
proceeding | 22 | | brought under this subsection may also recover from the
| 23 | | mortgagee the reasonable expenses of litigation, including | 24 | | reasonable attorney's fees. | 25 | | (d-5) Making Home Affordable Program. The court that | 26 | | entered the judgment shall set aside a sale held pursuant to |
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| 1 | | Section 15-1507, upon motion of the mortgagor at any time prior | 2 | | to the confirmation of the sale, if the mortgagor proves by a | 3 | | preponderance of the evidence that (i) the mortgagor has | 4 | | applied for assistance under the Making Home Affordable Program | 5 | | established by the United States Department of the Treasury | 6 | | pursuant to the Emergency Economic Stabilization Act of 2008, | 7 | | as amended by the American Recovery and Reinvestment Act of | 8 | | 2009, and (ii) the mortgaged real estate was sold in material | 9 | | violation of the program's requirements for proceeding to a | 10 | | judicial sale. The provisions of this subsection (d-5), except | 11 | | for this sentence, shall become inoperative on January 1, 2013 | 12 | | for all actions filed under this Article after December 31, | 13 | | 2012, in which the mortgagor did not apply for assistance under | 14 | | the Making Home Affordable Program on or before December 31, | 15 | | 2012. | 16 | | (e) Deficiency Judgment. In any order confirming a sale | 17 | | pursuant to the
judgment of foreclosure, the court shall also | 18 | | enter a personal judgment
for deficiency against any party (i) | 19 | | if otherwise authorized and (ii) to
the extent requested in the | 20 | | complaint and proven upon presentation of the
report of sale in | 21 | | accordance with Section 15-1508. Except as otherwise provided
| 22 | | in this Article, a judgment may be entered for any balance of | 23 | | money that
may be found due to the plaintiff, over and above | 24 | | the proceeds of the sale
or sales, and enforcement may be had | 25 | | for the collection of such balance,
the same as when the | 26 | | judgment is solely for the payment of money. Such
judgment may |
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| 1 | | be entered, or enforcement had,
only in cases where personal | 2 | | service has been had upon the
persons personally liable for the | 3 | | mortgage indebtedness, unless they have
entered their | 4 | | appearance in the foreclosure action. | 5 | | (f) Satisfaction. Upon confirmation of the sale, the
| 6 | | judgment stands satisfied to the extent of the sale price less | 7 | | expenses and
costs. If the order confirming the sale includes a | 8 | | deficiency judgment, the
judgment shall become a lien in the | 9 | | manner of any other
judgment for the payment of money. | 10 | | (g) The order confirming the sale shall include, | 11 | | notwithstanding any
previous orders awarding possession during | 12 | | the pendency of the foreclosure, an
award to the purchaser of | 13 | | possession of the mortgaged real estate, as of the
date 30 days | 14 | | after the entry of the order, against the
parties to the | 15 | | foreclosure whose interests have been terminated. | 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 | | (h) With respect to mortgaged real estate containing 5 or | 11 | | more dwelling units, the order confirming the sale shall also | 12 | | provide that (i) the mortgagor shall transfer to the purchaser | 13 | | the security deposits, if any, that the mortgagor received to | 14 | | secure payment of rent or to compensate for damage to the | 15 | | mortgaged real estate from any current occupant of a dwelling | 16 | | unit of the mortgaged real estate, as well as any statutory | 17 | | interest that has not been paid to the occupant, and (ii) the | 18 | | mortgagor shall provide an accounting of the security deposits | 19 | | that are transferred, including the name and address of each | 20 | | occupant for whom the mortgagor holds the deposit and the | 21 | | amount of the deposit and any statutory interest. | 22 | | (Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10; | 23 | | 96-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff. | 24 | | 8-26-11.)
| 25 | | (735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
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| 1 | | Sec. 15-1603. Redemption.
| 2 | | (a) Owner of Redemption. Except as
provided in subsection | 3 | | (b) of Section 15-1402, only an owner of redemption
may redeem | 4 | | from the foreclosure, and such owner of redemption may redeem
| 5 | | only during the redemption period specified in subsection (b) | 6 | | of Section
15-1603 and only if the right of redemption has not | 7 | | been validly waived.
| 8 | | (b) Redemption Period.
| 9 | | (1) In the foreclosure of a mortgage of
real estate | 10 | | which is residential real estate at the time the | 11 | | foreclosure
is commenced, the redemption period shall end | 12 | | on the later of
(i) the date 7 months from the date the | 13 | | mortgagor or, if more than one, all
the mortgagors (A) have | 14 | | been served with summons or by publication or (B)
have | 15 | | otherwise submitted to the jurisdiction of the court, or | 16 | | (ii) the date
3 months from the date of entry of a judgment | 17 | | of foreclosure.
| 18 | | (2) In all other foreclosures, the redemption period | 19 | | shall end on the later of
(i) the date 6 months from the | 20 | | date the mortgagor or, if more than one,
all the mortgagors | 21 | | (A) have been served with summons or by publication or
(B) | 22 | | have otherwise submitted to the jurisdiction of the court, | 23 | | or (ii) the
date 3 months from the date of entry of a | 24 | | judgment of foreclosure.
| 25 | | (3) Notwithstanding paragraphs (1) and (2),
the | 26 | | redemption period shall end at the later
of the expiration |
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| 1 | | of any reinstatement period provided for in Section
15-1602 | 2 | | or the date 60 days after the date the judgment of | 3 | | foreclosure is
entered, if the court finds that (i) the | 4 | | value of
the mortgaged real estate as of the date of the | 5 | | judgment is less than 90%
of the amount specified pursuant | 6 | | to subsection (d) of Section 15-1603 and
(ii) the mortgagee | 7 | | waives any and all rights to a personal judgment for a
| 8 | | deficiency against the mortgagor and against all other | 9 | | persons liable for
the indebtedness or other obligations | 10 | | secured by the mortgage.
| 11 | | (4) Notwithstanding paragraphs (1) and (2),
the | 12 | | redemption period shall end on the date 30
days after the | 13 | | date the judgment of foreclosure is entered if
the court | 14 | | finds that the mortgaged real estate is abandoned | 15 | | residential property has
been abandoned . In cases where the | 16 | | redemption period is shortened on
account of abandonment, | 17 | | the reinstatement period shall not extend beyond
the date | 18 | | the judgment is entered redemption period as 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 | | (735 ILCS 5/15-1701) (from Ch. 110, par. 15-1701)
| 25 | | Sec. 15-1701. Right to possession.
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| 1 | | (a) General. The provisions of
this Article shall govern | 2 | | the right to possession of the mortgaged real
estate during | 3 | | foreclosure. Possession under this Article includes physical
| 4 | | possession of the mortgaged real estate to the same extent to | 5 | | which the
mortgagor, absent the foreclosure, would have been | 6 | | entitled to physical
possession. For the purposes of Part 17, | 7 | | real estate is residential real estate
only if it is | 8 | | residential real estate at the time the foreclosure is | 9 | | commenced.
| 10 | | (a-5) Abandoned residential property. Notwithstanding | 11 | | anything to the contrary in this Section, the holder of the | 12 | | certificate of sale or deed issued pursuant to that certificate | 13 | | or, if no certificate or deed was issued, the purchaser, of | 14 | | abandoned residential property shall be entitled to possession | 15 | | of the property as of the date the order confirming the sale of | 16 | | the abandoned residential property is entered. | 17 | | (b) Pre-Judgment. Prior to the entry of a judgment of | 18 | | foreclosure:
| 19 | | (1) In the case of residential real estate, the | 20 | | mortgagor shall be
entitled to possession of the real | 21 | | estate except if (i) the mortgagee shall
object and show | 22 | | good cause, (ii) the mortgagee is so authorized by the | 23 | | terms of
the mortgage or other written instrument, and | 24 | | (iii) the court is satisfied that
there is a reasonable | 25 | | probability that the mortgagee will prevail on a final
| 26 | | hearing of the cause, the court shall upon request place |
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| 1 | | the mortgagee in
possession. If the residential real estate | 2 | | consists of more than one dwelling
unit, then for the | 3 | | purpose of this Part residential real estate shall mean | 4 | | only
that dwelling unit or units occupied by persons | 5 | | described in clauses (i), (ii)
and (iii) of Section | 6 | | 15-1219.
| 7 | | (2) In all other cases, if (i) the mortgagee is so | 8 | | authorized by the
terms of the mortgage or other written | 9 | | instrument, and (ii) the court is
satisfied that there is a | 10 | | reasonable probability that the mortgagee will
prevail on a | 11 | | final hearing of the cause, the mortgagee shall
upon | 12 | | request be placed in possession of the real estate, except | 13 | | that if the
mortgagor shall object and show good cause, the | 14 | | court shall allow the
mortgagor to remain in possession.
| 15 | | (c) Judgment Through 30 Days After Sale Confirmation. After | 16 | | the entry
of a judgment of foreclosure and through the 30th day | 17 | | after a foreclosure
sale is confirmed:
| 18 | | (1) Subsection (b) of Section 15-1701 shall be | 19 | | applicable, regardless of
the provisions of the mortgage or | 20 | | other instrument, except that after a
sale pursuant to the | 21 | | judgment the holder of the certificate of sale
(or, if | 22 | | none, the purchaser at the sale) shall have the mortgagee's | 23 | | right to be
placed in possession, with all rights and | 24 | | duties of a mortgagee in possession
under this Article.
| 25 | | (2) Notwithstanding paragraph (1) of subsection (b) | 26 | | and paragraph (1) of
subsection (c) of Section 15-1701, |
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| 1 | | upon request of the mortgagee, a mortgagor
of residential | 2 | | real estate shall not be allowed to remain in possession | 3 | | between
the expiration of the redemption period and through | 4 | | the 30th day after sale
confirmation unless (i) the | 5 | | mortgagor pays to the mortgagee or such holder or
| 6 | | purchaser, whichever is applicable, monthly the lesser of | 7 | | the interest due
under the mortgage calculated at the | 8 | | mortgage rate of interest applicable as if
no default had | 9 | | occurred or the fair rental value of the real estate, or | 10 | | (ii)
the mortgagor otherwise shows good cause. Any amounts | 11 | | paid by the mortgagor
pursuant to this subsection shall be | 12 | | credited against the amounts due from the
mortgagor.
| 13 | | (d) After 30 Days After Sale Confirmation. The holder of
| 14 | | the certificate of sale or deed issued pursuant to that | 15 | | certificate or, if
no certificate or deed was issued, the | 16 | | purchaser, except to the extent the
holder or purchaser may | 17 | | consent otherwise, shall be entitled to possession of
the | 18 | | mortgaged real estate, as of the date 30 days after the order | 19 | | confirming
the sale is entered, against those parties to the | 20 | | foreclosure whose interests
the court has ordered terminated, | 21 | | without further notice to any party, further
order of the | 22 | | court, or resort to proceedings under any other statute other | 23 | | than
this Article.
This right to possession shall be limited by | 24 | | the provisions
governing entering and enforcing orders of | 25 | | possession under subsection (g) of
Section
15-1508.
If the | 26 | | holder or purchaser determines that there are occupants
of the |
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| 1 | | mortgaged real estate who have not been made parties to the | 2 | | foreclosure
and had their interests terminated therein, the | 3 | | holder or purchaser may bring a
proceeding under subsection (h) | 4 | | of this Section or under Article 9 of this Code
to terminate | 5 | | the rights of possession of any such occupants. The holder or
| 6 | | purchaser shall not be entitled to proceed against any such | 7 | | occupant under
Article 9 of this Code until after 30 days after | 8 | | the order confirming the sale
is entered.
| 9 | | (e) Termination of Leases. A lease of all or any part of | 10 | | the mortgaged
real estate shall not be terminated automatically | 11 | | solely by virtue of the entry
into possession by (i) a | 12 | | mortgagee or receiver prior to the entry of an order
confirming | 13 | | the sale, (ii) the holder of the certificate of sale, (iii) the
| 14 | | holder of the deed issued pursuant to that certificate, or (iv) | 15 | | if no
certificate or deed was issued, the purchaser at the | 16 | | sale.
| 17 | | (f) Other Statutes; Instruments. The provisions of this | 18 | | Article
providing for possession of mortgaged real estate shall | 19 | | supersede any other
inconsistent statutory provisions. In | 20 | | particular, and without limitation,
whenever a receiver is | 21 | | sought to be appointed in any action in which a
foreclosure is | 22 | | also pending, a receiver shall be appointed only in
accordance | 23 | | with this Article. Except as may be authorized by this Article,
| 24 | | no mortgage or other instrument may modify or supersede the | 25 | | provisions of this
Article.
| 26 | | (g) Certain Leases. Leases of the mortgaged real estate |
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| 1 | | entered into by
a mortgagee in possession or a receiver and | 2 | | approved by the court in a
foreclosure shall be binding on all | 3 | | parties, including the mortgagor after
redemption, the | 4 | | purchaser at a sale pursuant to a judgment of foreclosure
and | 5 | | any person acquiring an interest in the mortgaged real estate | 6 | | after
entry of a judgment of foreclosure in accordance with | 7 | | Sections 15-1402 and
15-1403.
| 8 | | (h) Proceedings Against Certain Occupants.
| 9 | | (1) The mortgagee-in-possession of the mortgaged real | 10 | | estate under Section
15-1703, a receiver appointed under | 11 | | Section 15-1704, a holder of the
certificate of sale or | 12 | | deed, or the purchaser may, at any time during the
pendency | 13 | | of the foreclosure and up to 90 days after the date of the | 14 | | order
confirming the sale,
file a supplemental petition for | 15 | | possession against a person not personally
named as a party
| 16 | | to the foreclosure. The supplemental petition for | 17 | | possession shall name each such
occupant against whom | 18 | | possession is sought and state the facts upon which the
| 19 | | claim for relief is premised.
| 20 | | (2) The petitioner shall serve upon each named occupant | 21 | | the petition,
a notice of hearing on the petition, and, if | 22 | | any, a copy of the certificate of
sale or deed. The | 23 | | proceeding for the termination of such occupant's | 24 | | possessory
interest, including service of the notice of the | 25 | | hearing and the petition,
shall in all respects comport | 26 | | with the requirements of Article 9 of this Code,
except as |
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| 1 | | otherwise specified in this Section. The hearing shall be | 2 | | no less
than 21 days from the date of service of the | 3 | | notice.
| 4 | | (3) The supplemental petition shall be heard as part of | 5 | | the foreclosure
proceeding and without the payment of | 6 | | additional filing fees. An order for
possession obtained | 7 | | under this Section shall name each occupant whose interest
| 8 | | has been terminated, shall recite that it is only effective | 9 | | as to the occupant
so named and those holding under them, | 10 | | and shall be enforceable for no more
than 120 days after | 11 | | its entry, except that the 120-day period may be extended | 12 | | to
the extent and in the manner provided in Section 9-117 | 13 | | of Article 9 and except as provided in item (4) of this | 14 | | subsection (h). | 15 | | (4) In a case of foreclosure where the occupant is | 16 | | current on his or her rent, or where timely written notice | 17 | | of to whom and where the rent is to be paid has not been | 18 | | provided to the occupant, or where the occupant has made | 19 | | good-faith efforts to make rental payments in order to keep | 20 | | current, any order of possession must allow the occupant to | 21 | | retain possession of the property covered in his or her | 22 | | rental agreement (i) for 120 days following the notice of | 23 | | the hearing on the supplemental petition that has been | 24 | | properly served upon the occupant, or (ii) through the | 25 | | duration of his or her lease, whichever is shorter, | 26 | | provided that if the duration of his or her lease is less |
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| 1 | | than 30 days from the date of the order, the order shall | 2 | | allow the occupant to retain possession for 30 days from | 3 | | the date of the order. A mortgagee in possession, receiver, | 4 | | holder of a certificate of sale or deed, or purchaser at | 5 | | the judicial sale, who asserts that the occupant is not | 6 | | current in rent, shall file an affidavit to that effect in | 7 | | the supplemental petition proceeding. If the occupant has | 8 | | been given timely written notice of to whom and where the | 9 | | rent is to be paid, this item (4) shall only apply if the | 10 | | occupant continues to pay his or her rent in full during | 11 | | the 120-day period or has made good-faith efforts to pay | 12 | | the rent in full during that period.
No | 13 | | mortgagee-in-possession, receiver or holder of a | 14 | | certificate of sale or deed, or purchaser who fails to file | 15 | | a supplemental petition under this subsection during the | 16 | | pendency of a mortgage foreclosure shall file a forcible | 17 | | entry and detainer action against an occupant of the | 18 | | mortgaged real estate until 90 days after a notice of | 19 | | intent to file such action has been properly served upon | 20 | | the occupant. | 21 | | (5) The court records relating to a supplemental | 22 | | petition for possession filed under this subsection (h) | 23 | | against an occupant who is entitled to notice under item | 24 | | (4) of this subsection (h), or relating to a forcible entry | 25 | | and detainer action brought against an occupant who would | 26 | | have lawful possession of the premises but for the |
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| 1 | | foreclosure of a mortgage on the property, shall be ordered | 2 | | sealed and shall not be disclosed to any person, other than | 3 | | a law enforcement officer or any other representative of a | 4 | | governmental entity, except upon further order of the | 5 | | court.
| 6 | | (Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60, | 7 | | eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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