Illinois General Assembly - Full Text of SB2534
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Full Text of SB2534  97th General Assembly




State of Illinois
2011 and 2012


Introduced 11/29/2011, by Sen. A. J. Wilhelmi


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

    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.

LRB097 14747 AJO 59760 b





SB2534LRB097 14747 AJO 59760 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, 15-1508, 15-1603, and 15-1701 and by
6adding 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
9residential property" means residential real estate that upon
10inspection is not occupied by any mortgagor or bona fide tenant
11as a principal residence, and with respect to which at least 2
12of the following conditions or circumstances are shown to
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
16substantially 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:
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
19contain only such statements and requests called for by the
20form set forth in subsection (a) of Section 15-1504 as may be
21appropriate for the relief sought. Such complaint may be filed
22as a counterclaim, may be joined with other counts or may
23include in the same count additional matters or a request for
24any additional relief permitted by Article II of the Code of
25Civil Procedure.



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1    (c) Allegations. The statements contained in a complaint in
2the form set forth in subsection (a) of Section 15-1504 are
3deemed 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
12complaint that plaintiff seeks the inclusion of attorneys' fees
13and of costs and expenses shall be deemed and construed to
14include 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
11deemed 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
22personal judgment for a deficiency in a foreclosure complaint
23if the sale of the mortgaged real estate fails to produce a
24sufficient amount to pay the amount found due, the plaintiff
25may have a personal judgment against any party in the
26foreclosure indicated as being personally liable therefor and



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1the enforcement thereof be had as provided by law.
2    (g) Request for Possession or Receiver. A request for
3possession or appointment of a receiver has the meaning as
4stated in subsection (b) of Section 15-1706.
5    (h) Answers by Parties. Any party may assert its interest
6by counterclaim and such counterclaim may at the option of that
7party stand in lieu of answer to the complaint for foreclosure
8and all counter complaints previously or thereafter filed in
9the foreclosure. Any such counterclaim shall be deemed to
10constitute a statement that the counter claimant does not have
11sufficient knowledge to form a belief as to the truth or
12falsity of the allegations of the complaint and all other
13counterclaims, except to the extent that the counterclaim
14admits 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
18abandoned residential property.
19    (a) Upon motion and notice, the mortgagee may elect to
20utilize the expedited judgment and sale procedure for abandoned
21residential property stated in this Section to obtain a
22judgment of foreclosure pursuant to Section 15-1506. The motion
23may be combined with or made part of the motion requesting a
24judgment of foreclosure. If service upon the mortgagor was
25obtained by publication, then notice of the motion to the



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1mortgagor shall be posted at the property address.
2    (b) The motion requesting an expedited judgment of
3foreclosure and sale may be filed by the mortgagee at the time
4the foreclosure complaint is filed or any time thereafter and
5shall be accompanied by an affidavit setting forth facts
6sufficient for the court to find that the mortgaged real estate
7is abandoned residential property.
8    (c) If a motion for an expedited judgment and sale is filed
9at the time the foreclosure complaint is filed, the motion
10shall 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
20after the foreclosure complaint is filed, the motion shall be
21heard no later than 15 days after the motion is filed, provided
22that 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
6shall be scheduled to be heard within the applicable time
7period set forth in subsection (c) or (d) of this Section.
8    (f) The affidavit shall be signed by and be based upon the
9information and belief of the mortgagee, an agent of the
10mortgagee, the sheriff of the county or local law enforcement
11agency of the municipality in which the property is located, or
12a building inspector or other municipal or county official for
13the municipality or county in which the property is located.
14The affidavit shall state that the property is not occupied by
15any mortgagor or bona fide tenant as a principal residence and
16there exists at least 2 of the conditions or circumstances
17listed in Section 15-1200.5, which shall be stated in the
18affidavit. Photographic or other documentary evidence that
19demonstrates supporting facts set forth in the affidavit shall
20be attached to the affidavit. An affidavit that meets 2 of the
21specified conditions or circumstances shall be prima facie
22evidence that the property which is the subject of the
23foreclosure complaint is abandoned residential property.
24    (g) The court may not find that the mortgaged real estate
25is abandoned residential property if an appearance has been
26made and an objection has been filed to the finding that the



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1property is abandoned residential property or if the owner
2provides evidence that the owner is working with, or making an
3attempt to work with, the mortgagee to modify the mortgage.
4    (h) At the hearing on the motion requesting an expedited
5judgment and sale, and upon a finding by the court that the
6mortgaged real estate is abandoned residential property, the
7court shall immediately proceed to enter a judgment of
8foreclosure as requested in the complaint. The judgment of
9foreclosure shall include the matters identified in Section
11    (i) The reinstatement period and redemption period for the
12abandoned residential property shall end in accordance with
13paragraph (b)(4) of Section 15-1603 and the property shall be
14sold at the earliest practicable time at a sale as provided in
15this Article.
16    (j) A mortgagee or its agent may enter an abandoned
17residential property that is the subject of a foreclosure
18complaint for the purpose of maintaining or securing the
19property, provided that entry is not barred by an automatic
20stay issued by a bankruptcy court. A mortgagee and its agents
21shall not be held liable for any claim of negligence, civil
22trespass, or criminal trespass based upon entering the
23abandoned residential property or maintaining or securing the
24abandoned residential property.
25    (k) The mortgagee shall be responsible for repairs or other
26maintenance to the abandoned residential property if it



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1purchases the property at the foreclosure sale held pursuant to
2Section 15-1507 and the sale is confirmed by the court pursuant
3to Section 15-1508.
4    (l) Upon confirmation of the sale held pursuant to Section
515-1507, any personal property remaining in or upon the
6abandoned residential property shall be deemed to have been
7abandoned by the owner of such personal property and may be
8disposed 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
10donation of any such personal property, the holder of the
11certificate of sale (or, if none, the purchaser at the sale)
12may transfer such donated property with a bill of sale. No
13mortgagee or its successors or assigns, holder of a certificate
14of sale, or purchaser at the sale shall be liable for any such
15disposal or donation of personal property.
16    (m) No mortgagee shall be held liable for seeking a
17judicial determination of abandonment, if the mortgagee, upon
18information and belief at the time the motion requesting an
19expedited judgment of foreclosure and sale is filed with the
20court, makes a good faith assertion in its affidavit that
21evidence exists supporting the fact the mortgaged real estate
22is 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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1make a report to the court, which report shall include a copy
2of all receipts and, if any, certificate of sale.
3    (b) Hearing. Upon motion and notice in accordance with
4court rules applicable to motions generally, which motion shall
5not be made prior to sale, the court shall conduct a hearing to
6confirm the sale. Unless the court finds that (i) a notice
7required in accordance with subsection (c) of Section 15-1507
8was not given, (ii) the terms of sale were unconscionable,
9(iii) the sale was conducted fraudulently, or (iv) justice was
10otherwise not done, the court shall then enter an order
11confirming the sale. The confirmation order shall include a
12name, address, and telephone number of the holder of the
13certificate of sale or deed issued pursuant to that certificate
14or, if no certificate or deed was issued, the purchaser, whom a
15municipality or county may contact with concerns about the real
16estate. 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
4property. Upon motion and notice, which motion shall be made
5prior to the sale and heard by the court upon conclusion of the
6sale, the court shall enter an order confirming the sale of the
7abandoned residential property, unless the court finds that a
8reason set forth in items (i) through (iv) of subsection (b) of
9this Section exists for not approving the sale. The
10confirmation order also may address the matters identified in
11items (1) through (3) of subsection (b) of this Section.
12Notwithstanding anything to the contrary in subsection (h) of
13this Section, the order confirming the sale of the abandoned
14residential property shall award to the purchaser possession of
15the property as of the date of the entry of the order
16confirming the sale.
17    (b-5) Notice with respect to residential real estate. With
18respect to residential real estate, the notice required under
19subsection (b) of this Section shall be sent to the mortgagor
20even if the mortgagor has previously been held in default. In
21the event the mortgagor has filed an appearance, the notice
22shall be sent to the address indicated on the appearance. In
23all other cases, the notice shall be sent to the mortgagor at
24the common address of the foreclosed property. The notice shall
25be sent by first class mail. Unless the right to possession has
26been previously terminated by the court, the notice shall



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1include the following language in 12-point boldface
2capitalized type:
7    (b-10) Notice of confirmation order sent to municipality or
8county. A copy of the confirmation order required under
9subsection (b) shall be sent to the municipality in which the
10foreclosed property is located, or to the county within the
11boundary of which the foreclosed property is located if the
12foreclosed property is located in an unincorporated territory.
13A municipality or county must clearly publish on its website a
14single address to which such notice shall be sent. If a
15municipality or county does not maintain a website, then the
16municipality or county must publicly post in its main office a
17single address to which such notice shall be sent. In the event
18that a municipality or county has not complied with the
19publication requirement in this subsection (b-10), then such
20notice to the municipality or county shall be provided pursuant
21to Section 2-211 of the Code of Civil Procedure.
22    (c) Failure to Give Notice. If any sale is held without
23compliance with subsection (c) of Section 15-1507 of this
24Article, any party entitled to the notice provided for in
25paragraph (3) of that subsection (c) who was not so notified
26may, by motion supported by affidavit made prior to



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



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1Section 15-1507, upon motion of the mortgagor at any time prior
2to the confirmation of the sale, if the mortgagor proves by a
3preponderance of the evidence that (i) the mortgagor has
4applied for assistance under the Making Home Affordable Program
5established by the United States Department of the Treasury
6pursuant to the Emergency Economic Stabilization Act of 2008,
7as amended by the American Recovery and Reinvestment Act of
82009, and (ii) the mortgaged real estate was sold in material
9violation of the program's requirements for proceeding to a
10judicial sale. The provisions of this subsection (d-5), except
11for this sentence, shall become inoperative on January 1, 2013
12for all actions filed under this Article after December 31,
132012, in which the mortgagor did not apply for assistance under
14the Making Home Affordable Program on or before December 31,
16    (e) Deficiency Judgment. In any order confirming a sale
17pursuant to the judgment of foreclosure, the court shall also
18enter a personal judgment for deficiency against any party (i)
19if otherwise authorized and (ii) to the extent requested in the
20complaint and proven upon presentation of the report of sale in
21accordance with Section 15-1508. Except as otherwise provided
22in this Article, a judgment may be entered for any balance of
23money that may be found due to the plaintiff, over and above
24the proceeds of the sale or sales, and enforcement may be had
25for the collection of such balance, the same as when the
26judgment is solely for the payment of money. Such judgment may



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1be entered, or enforcement had, only in cases where personal
2service has been had upon the persons personally liable for the
3mortgage indebtedness, unless they have entered their
4appearance in the foreclosure action.
5    (f) Satisfaction. Upon confirmation of the sale, the
6judgment stands satisfied to the extent of the sale price less
7expenses and costs. If the order confirming the sale includes a
8deficiency judgment, the judgment shall become a lien in the
9manner of any other judgment for the payment of money.
10    (g) The order confirming the sale shall include,
11notwithstanding any previous orders awarding possession during
12the pendency of the foreclosure, an award to the purchaser of
13possession of the mortgaged real estate, as of the date 30 days
14after the entry of the order, against the parties to the
15foreclosure whose interests have been terminated.
16    An order of possession authorizing the removal of a person
17from possession of the mortgaged real estate shall be entered
18and enforced only against those persons personally named as
19individuals in the complaint or the petition under subsection
20(h) of Section 15-1701 and in the order of possession and shall
21not be entered and enforced against any person who is only
22generically described as an unknown owner or nonrecord claimant
23or by another generic designation in the complaint.
24    Notwithstanding the preceding paragraph, the failure to
25personally name, include, or seek an award of possession of the
26mortgaged real estate against a person in the confirmation



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1order shall not abrogate any right that the purchaser may have
2to possession of the mortgaged real estate and to maintain a
3proceeding against that person for possession under Article 9
4of this Code or subsection (h) of Section 15-1701; and
5possession against a person who (1) has not been personally
6named as a party to the foreclosure and (2) has not been
7provided an opportunity to be heard in the foreclosure
8proceeding may be sought only by maintaining a proceeding under
9Article 9 of this Code or subsection (h) of Section 15-1701.
10    (h) With respect to mortgaged real estate containing 5 or
11more dwelling units, the order confirming the sale shall also
12provide that (i) the mortgagor shall transfer to the purchaser
13the security deposits, if any, that the mortgagor received to
14secure payment of rent or to compensate for damage to the
15mortgaged real estate from any current occupant of a dwelling
16unit of the mortgaged real estate, as well as any statutory
17interest that has not been paid to the occupant, and (ii) the
18mortgagor shall provide an accounting of the security deposits
19that are transferred, including the name and address of each
20occupant for whom the mortgagor holds the deposit and the
21amount of the deposit and any statutory interest.
22(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
2396-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
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
4from the foreclosure, and such owner of redemption may redeem
5only during the redemption period specified in subsection (b)
6of Section 15-1603 and only if the right of redemption has not
7been 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
18redeem shall be the sum of:
19        (1) The amount specified in the judgment of
20    foreclosure, which shall consist of (i) all principal and
21    accrued interest secured by the mortgage and due as of the
22    date of the judgment, (ii) all costs allowed by law, (iii)
23    costs and expenses approved by the court, (iv) to the
24    extent provided for in the mortgage and approved by the
25    court, additional costs, expenses and reasonable
26    attorneys' fees incurred by the mortgagee, (v) all amounts



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



SB2534- 29 -LRB097 14747 AJO 59760 b

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



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1    of redemption files an objection at the time of payment,
2    the clerk shall give a receipt of payment to the person
3    redeeming from the foreclosure, and shall file a copy of
4    that receipt in the foreclosure record. Upon receipt of the
5    amounts specified to be paid to the mortgagee pursuant to
6    this Section, the mortgagee shall promptly furnish the
7    mortgagor with a release of the mortgage or satisfaction of
8    the judgment, as appropriate, and the evidence of all
9    indebtedness secured by the mortgage shall be cancelled.
10    (g) Procedure Upon Objection. If an objection is filed by
11an owner of redemption in accordance with paragraph (2) of
12subsection (f) of Section 15-1603, the clerk shall hold the
13amount to which the objection pertains until the court orders
14distribution of those funds. The court shall hold a hearing
15promptly to determine the distribution of any funds held by the
16clerk pursuant to such objection. Each party shall pay its own
17costs and expenses in connection with any objection, including
18attorneys' fees, subject to Section 2-611 of the Code of Civil
20    (h) Failure to Redeem. Unless the real estate being
21foreclosed is redeemed from the foreclosure, it shall be sold
22as provided in this Article.
23(Source: P.A. 86-974.)
24    (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
2the right to possession of the mortgaged real estate during
3foreclosure. Possession under this Article includes physical
4possession of the mortgaged real estate to the same extent to
5which the mortgagor, absent the foreclosure, would have been
6entitled to physical possession. For the purposes of Part 17,
7real estate is residential real estate only if it is
8residential real estate at the time the foreclosure is
10    (a-5) Abandoned residential property. Notwithstanding
11anything to the contrary in this Section, the holder of the
12certificate of sale or deed issued pursuant to that certificate
13or, if no certificate or deed was issued, the purchaser, of
14abandoned residential property shall be entitled to possession
15of the property as of the date the order confirming the sale of
16the abandoned residential property is entered.
17    (b) Pre-Judgment. Prior to the entry of a judgment of
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
16the entry of a judgment of foreclosure and through the 30th day
17after 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
14the certificate of sale or deed issued pursuant to that
15certificate or, if no certificate or deed was issued, the
16purchaser, except to the extent the holder or purchaser may
17consent otherwise, shall be entitled to possession of the
18mortgaged real estate, as of the date 30 days after the order
19confirming the sale is entered, against those parties to the
20foreclosure whose interests the court has ordered terminated,
21without further notice to any party, further order of the
22court, or resort to proceedings under any other statute other
23than this Article. This right to possession shall be limited by
24the provisions governing entering and enforcing orders of
25possession under subsection (g) of Section 15-1508. If the
26holder or purchaser determines that there are occupants of the



SB2534- 34 -LRB097 14747 AJO 59760 b

1mortgaged real estate who have not been made parties to the
2foreclosure and had their interests terminated therein, the
3holder or purchaser may bring a proceeding under subsection (h)
4of this Section or under Article 9 of this Code to terminate
5the rights of possession of any such occupants. The holder or
6purchaser shall not be entitled to proceed against any such
7occupant under Article 9 of this Code until after 30 days after
8the order confirming the sale is entered.
9    (e) Termination of Leases. A lease of all or any part of
10the mortgaged real estate shall not be terminated automatically
11solely by virtue of the entry into possession by (i) a
12mortgagee or receiver prior to the entry of an order confirming
13the sale, (ii) the holder of the certificate of sale, (iii) the
14holder of the deed issued pursuant to that certificate, or (iv)
15if no certificate or deed was issued, the purchaser at the
17    (f) Other Statutes; Instruments. The provisions of this
18Article providing for possession of mortgaged real estate shall
19supersede any other inconsistent statutory provisions. In
20particular, and without limitation, whenever a receiver is
21sought to be appointed in any action in which a foreclosure is
22also pending, a receiver shall be appointed only in accordance
23with this Article. Except as may be authorized by this Article,
24no mortgage or other instrument may modify or supersede the
25provisions of this Article.
26    (g) Certain Leases. Leases of the mortgaged real estate



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1entered into by a mortgagee in possession or a receiver and
2approved by the court in a foreclosure shall be binding on all
3parties, including the mortgagor after redemption, the
4purchaser at a sale pursuant to a judgment of foreclosure and
5any person acquiring an interest in the mortgaged real estate
6after entry of a judgment of foreclosure in accordance with
7Sections 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



SB2534- 36 -LRB097 14747 AJO 59760 b

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



SB2534- 37 -LRB097 14747 AJO 59760 b

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



SB2534- 38 -LRB097 14747 AJO 59760 b

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,
7eff. 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
9becoming law.