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


Sen. John G. Mulroe

Filed: 4/25/2012





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2    AMENDMENT NO. ______. Amend Senate Bill 2534, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Code of Civil Procedure is amended by
6changing Sections 15-1504, 15-1507.1, 15-1508, 15-1603, and
715-1701 and by adding Sections 15-1200.5, 15-1200.7, and
815-1505.8 as follows:
9    (735 ILCS 5/15-1200.5 new)
10    Sec. 15-1200.5. Abandoned residential property. "Abandoned
11residential property" means residential real estate that, upon
13    (a) is either:
14        (1) not occupied by any mortgagor or lawful occupant as
15    a principal residence; or
16        (2) an incomplete structure if the real estate is zoned



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1    for residential development, where the structure is empty
2    or otherwise uninhabited and the structure or lot is in
3    need of maintenance, repair, or securing; and
4    (b) with respect to which either:
5        (1) two or more of the following conditions are shown
6    to exist:
7            (A) all lawful business or construction operations
8        have ceased for 6 months;
9            (B) it has been declared unfit for occupancy and
10        ordered to remain vacant and unoccupied under an order
11        issued by a municipal or county authority or a court of
12        competent jurisdiction;
13            (C) no construction or legal repairs have
14        commenced for 6 months;
15            (D) the doors or windows are smashed through,
16        broken, unhinged, removed, or continuously unlocked;
17            (E) law enforcement officials have received at
18        least one report of trespassers or vandalism or other
19        illegal acts being committed at the property in the
20        last 6 months; or
21            (F) gas, electrical, or water services to the
22        entire premises have been terminated; or
23        (2) there exists other evidence indicating a clear
24    intent to abandon the property.
25    (735 ILCS 5/15-1200.7 new)



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1    Sec. 15-1200.7. Abandoned residential property;
2exceptions. A property shall not be considered abandoned
3residential property if: (i) there is an unoccupied building
4which is undergoing construction, renovation, or
5rehabilitation that is proceeding diligently to completion,
6and the building is in substantial compliance with all
7applicable ordinances, codes, regulations, and laws; (ii)
8there is a building occupied on a seasonal basis, but otherwise
9secure; (iii) there is a secure building on which there are
10bona fide rental or sale signs; (iv) there is a building that
11is secure, but is the subject of a probate action, action to
12quiet title, or other ownership dispute; or (v) there is a
13building that is otherwise secure and in substantial compliance
14with all applicable ordinances, codes, regulations and laws.
15    (735 ILCS 5/15-1504)  (from Ch. 110, par. 15-1504)
16    Sec. 15-1504. Pleadings and service.
17    (a) Form of Complaint. A foreclosure complaint may be in
18substantially the following form:
19        (1) Plaintiff files this complaint to foreclose the
20    mortgage (or other conveyance in the nature of a mortgage)
21    (hereinafter called "mortgage") hereinafter described and
22    joins the following person as defendants: (here insert
23    names of all defendants).
24        (2) Attached as Exhibit "A" is a copy of the mortgage
25    and as Exhibit "B" is a copy of the note secured thereby.



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



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1            (M) Names of defendants claimed to be personally
2        liable for deficiency, if any:
3            (N) Capacity in which plaintiff brings this
4        foreclosure (here indicate whether plaintiff is the
5        legal holder of the indebtedness, a pledgee, an agent,
6        the trustee under a trust deed or otherwise, as
7        appropriate):
8            (O) Facts in support of redemption period shorter
9        than the longer of (i) 7 months from the date the
10        mortgagor or, if more than one, all the mortgagors (I)
11        have been served with summons or by publication or (II)
12        have otherwise submitted to the jurisdiction of the
13        court, or (ii) 3 months from the entry of the judgment
14        of foreclosure, if sought (here indicate whether based
15        upon the real estate not being residential,
16        abandonment, or real estate value less than 90% of
17        amount owed, etc.):
18            (P) Statement that the right of redemption has been
19        waived by all owners of redemption, if applicable:
20            (Q) Facts in support of request for attorneys' fees
21        and of costs and expenses, if applicable:
22            (R) Facts in support of a request for appointment
23        of mortgagee in possession or for appointment of
24        receiver, and identity of such receiver, if sought:
25            (S) Offer to mortgagor in accordance with Section
26        15-1402 to accept title to the real estate in



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1        satisfaction of all indebtedness and obligations
2        secured by the mortgage without judicial sale, if
3        sought:
4            (T) Name or names of defendants whose right to
5        possess the mortgaged real estate, after the
6        confirmation of a foreclosure sale, is sought to be
7        terminated and, if not elsewhere stated, the facts in
8        support thereof:
10    Plaintiff requests:
11        (i) A judgment of foreclosure and sale.
12        (ii) An order granting a shortened redemption period,
13    if sought.
14        (iii) A personal judgment for a deficiency, if sought.
15        (iv) An order granting possession, if sought.
16        (v) An order placing the mortgagee in possession or
17    appointing a receiver, if sought.
18        (vi) A judgment for attorneys' fees, costs and
19    expenses, if sought.
20    (b) Required Information. A foreclosure complaint need
21contain only such statements and requests called for by the
22form set forth in subsection (a) of Section 15-1504 as may be
23appropriate for the relief sought. Such complaint may be filed
24as a counterclaim, may be joined with other counts or may
25include in the same count additional matters or a request for



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1any additional relief permitted by Article II of the Code of
2Civil Procedure.
3    (c) Allegations. The statements contained in a complaint in
4the form set forth in subsection (a) of Section 15-1504 are
5deemed and construed to include allegations as follows:
6        (1) on the date indicated the obligor of the
7    indebtedness or other obligations secured by the mortgage
8    was justly indebted in the amount of the indicated original
9    indebtedness to the original mortgagee or payee of the
10    mortgage note;
11        (2) that the exhibits attached are true and correct
12    copies of the mortgage and note and are incorporated and
13    made a part of the complaint by express reference;
14        (3) that the mortgagor was at the date indicated an
15    owner of the interest in the real estate described in the
16    complaint and that as of that date made, executed and
17    delivered the mortgage as security for the note or other
18    obligations;
19        (4) that the mortgage was recorded in the county in
20    which the mortgaged real estate is located, on the date
21    indicated, in the book and page or as the document number
22    indicated;
23        (5) that defaults occurred as indicated;
24        (6) that at the time of the filing of the complaint the
25    persons named as present owners are the owners of the
26    indicated interests in and to the real estate described;



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1        (7) that the mortgage constitutes a valid, prior and
2    paramount lien upon the indicated interest in the mortgaged
3    real estate, which lien is prior and superior to the right,
4    title, interest, claim or lien of all parties and nonrecord
5    claimants whose interests in the mortgaged real estate are
6    sought to be terminated;
7        (8) that by reason of the defaults alleged, if the
8    indebtedness has not matured by its terms, the same has
9    become due by the exercise, by the plaintiff or other
10    persons having such power, of a right or power to declare
11    immediately due and payable the whole of all indebtedness
12    secured by the mortgage;
13        (9) that any and all notices of default or election to
14    declare the indebtedness due and payable or other notices
15    required to be given have been duly and properly given;
16        (10) that any and all periods of grace or other period
17    of time allowed for the performance of the covenants or
18    conditions claimed to be breached or for the curing of any
19    breaches have expired;
20        (11) that the amounts indicated in the statement in the
21    complaint are correctly stated and if such statement
22    indicates any advances made or to be made by the plaintiff
23    or owner of the mortgage indebtedness, that such advances
24    were, in fact, made or will be required to be made, and
25    under and by virtue of the mortgage the same constitute
26    additional indebtedness secured by the mortgage; and



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1        (12) that, upon confirmation of the sale, the holder of
2    the certificate of sale or deed issued pursuant to that
3    certificate or, if no certificate or deed was issued, the
4    purchaser at the sale will be entitled to full possession
5    of the mortgaged real estate against the parties named in
6    clause (T) of paragraph (3) of subsection (a) of Section
7    15-1504 or elsewhere to the same effect; the omission of
8    any party indicates that plaintiff will not seek a
9    possessory order in the order confirming sale unless the
10    request is subsequently made under subsection (h) of
11    Section 15-1701 or by separate action under Article 9 of
12    this Code.
13    (d) Request for Fees and Costs. A statement in the
14complaint that plaintiff seeks the inclusion of attorneys' fees
15and of costs and expenses shall be deemed and construed to
16include allegations that:
17        (1) plaintiff has been compelled to employ and retain
18    attorneys to prepare and file the complaint and to
19    represent and advise the plaintiff in the foreclosure of
20    the mortgage and the plaintiff will thereby become liable
21    for the usual, reasonable and customary fees of the
22    attorneys in that behalf;
23        (2) that the plaintiff has been compelled to advance or
24    will be compelled to advance, various sums of money in
25    payment of costs, fees, expenses and disbursements
26    incurred in connection with the foreclosure, including,



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1    without limiting the generality of the foregoing, filing
2    fees, stenographer's fees, witness fees, costs of
3    publication, costs of procuring and preparing documentary
4    evidence and costs of procuring abstracts of title, Torrens
5    certificates, foreclosure minutes and a title insurance
6    policy;
7        (3) that under the terms of the mortgage, all such
8    advances, costs, attorneys' fees and other fees, expenses
9    and disbursements are made a lien upon the mortgaged real
10    estate and the plaintiff is entitled to recover all such
11    advances, costs, attorneys' fees, expenses and
12    disbursements, together with interest on all advances at
13    the rate provided in the mortgage, or, if no rate is
14    provided therein, at the statutory judgment rate, from the
15    date on which such advances are made;
16        (4) that in order to protect the lien of the mortgage,
17    it may become necessary for plaintiff to pay taxes and
18    assessments which have been or may be levied upon the
19    mortgaged real estate;
20        (5) that in order to protect and preserve the mortgaged
21    real estate, it may also become necessary for the plaintiff
22    to pay liability (protecting mortgagor and mortgagee),
23    fire and other hazard insurance premiums on the mortgaged
24    real estate, make such repairs to the mortgaged real estate
25    as may reasonably be deemed necessary for the proper
26    preservation thereof, advance for costs to inspect the



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1    mortgaged real estate or to appraise it, or both, and
2    advance for premiums for pre-existing private or
3    governmental mortgage insurance to the extent required
4    after a foreclosure is commenced in order to keep such
5    insurance in force; and
6        (6) that under the terms of the mortgage, any money so
7    paid or expended will become an additional indebtedness
8    secured by the mortgage and will bear interest from the
9    date such monies are advanced at the rate provided in the
10    mortgage, or, if no rate is provided, at the statutory
11    judgment rate.
12    (e) Request for Foreclosure. The request for foreclosure is
13deemed and construed to mean that the plaintiff requests that:
14        (1) an accounting may be taken under the direction of
15    the court of the amounts due and owing to the plaintiff;
16        (2) that the defendants be ordered to pay to the
17    plaintiff before expiration of any redemption period (or,
18    if no redemption period, before a short date fixed by the
19    court) whatever sums may appear to be due upon the taking
20    of such account, together with attorneys' fees and costs of
21    the proceedings (to the extent provided in the mortgage or
22    by law);
23        (3) that in default of such payment in accordance with
24    the judgment, the mortgaged real estate be sold as directed
25    by the court, to satisfy the amount due to the plaintiff as
26    set forth in the judgment, together with the interest



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1    thereon at the statutory judgment rate from the date of the
2    judgment;
3        (4) that in the event the plaintiff is a purchaser of
4    the mortgaged real estate at such sale, the plaintiff may
5    offset against the purchase price of such real estate the
6    amounts due under the judgment of foreclosure and order
7    confirming the sale;
8        (5) that in the event of such sale and the failure of
9    any person entitled thereto to redeem prior to such sale
10    pursuant to this Article, the defendants made parties to
11    the foreclosure in accordance with this Article, and all
12    nonrecord claimants given notice of the foreclosure in
13    accordance with this Article, and all persons claiming by,
14    through or under them, and each and any and all of them,
15    may be forever barred and foreclosed of any right, title,
16    interest, claim, lien, or right to redeem in and to the
17    mortgaged real estate; and
18        (6) that if no redemption is made prior to such sale, a
19    deed may be issued to the purchaser thereat according to
20    law and such purchaser be let into possession of the
21    mortgaged real estate in accordance with Part 17 of this
22    Article.
23    (f) Request for Deficiency Judgment. A request for a
24personal judgment for a deficiency in a foreclosure complaint
25if the sale of the mortgaged real estate fails to produce a
26sufficient amount to pay the amount found due, the plaintiff



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1may have a personal judgment against any party in the
2foreclosure indicated as being personally liable therefor and
3the enforcement thereof be had as provided by law.
4    (g) Request for Possession or Receiver. A request for
5possession or appointment of a receiver has the meaning as
6stated in subsection (b) of Section 15-1706.
7    (h) Answers by Parties. Any party may assert its interest
8by counterclaim and such counterclaim may at the option of that
9party stand in lieu of answer to the complaint for foreclosure
10and all counter complaints previously or thereafter filed in
11the foreclosure. Any such counterclaim shall be deemed to
12constitute a statement that the counter claimant does not have
13sufficient knowledge to form a belief as to the truth or
14falsity of the allegations of the complaint and all other
15counterclaims, except to the extent that the counterclaim
16admits or specifically denies such allegations.
17(Source: P.A. 91-357, eff. 7-29-99.)
18    (735 ILCS 5/15-1505.8 new)
19    Sec. 15-1505.8. Expedited judgment and sale procedure for
20abandoned residential property.
21    (a) Upon motion and notice, the mortgagee may elect to
22utilize the expedited judgment and sale procedure for abandoned
23residential property stated in this Section to obtain a
24judgment of foreclosure pursuant to Section 15-1506. The motion
25to expedite the judgment and sale may be combined with or made



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1part of the motion requesting a judgment of foreclosure. The
2notice of the motion to expedite the judgment and sale shall be
3posted at the property address and sent by first-class mail to
4the last known address of the mortgagor.
5    (b) The motion requesting an expedited judgment of
6foreclosure and sale may be filed by the mortgagee at the time
7the foreclosure complaint is filed or any time thereafter and
8shall be accompanied by an affidavit setting forth facts
9sufficient for the court to find that the mortgaged real estate
10is abandoned residential property.
11    (c) If a motion for an expedited judgment and sale is filed
12at the time the foreclosure complaint is filed or before the
13period to answer the foreclosure complaint has expired, the
14motion shall be heard by the court no earlier than before the
15period to answer the foreclosure complaint has expired and no
16later than 15 days after the period to answer the foreclosure
17complaint has expired.
18    (d) If a motion for an expedited judgment and sale is filed
19after the period to answer the foreclosure complaint has
20expired, the motion shall be heard no later than 15 days after
21the motion is filed.
22    (e) The hearing shall be given priority by the court and
23shall be scheduled to be heard within the applicable time
24period set forth in subsection (c) or (d) of this Section.
25    (f) The affidavit required under subsection (b) shall be
26signed and verified by the mortgagee and shall state that, upon



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1information and belief of the mortgagee after inspection by the
2mortgagee, the property is not occupied by any mortgagor or
3lawful occupant as a principal residence, or the structure is
4empty or otherwise uninhabited and the structure or lot is in
5need of maintenance, repair, or securing, and the property is
6abandoned residential property. The affidavit shall set forth
7the conditions or circumstances listed in Section 15-1200.5
8that support the request for a finding that the property is
9abandoned residential property. Photographic or other
10documentary evidence in support of the conditions or
11circumstances shall be attached to the affidavit.
12    (g) Subject to subsection (h), at the hearing on the motion
13requesting an expedited judgment and sale, if the court finds
14that the property which is the subject of the foreclosure
15complaint is abandoned residential property, the court shall
16grant the motion and immediately proceed to a trial of the
17foreclosure. A judgment of foreclosure under this Section shall
18include the matters identified in Section 15-1506.
19    (h) The court may not grant the motion requesting an
20expedited judgment and sale if: (i) the mortgagor appears in
21the action in any manner before or at the hearing and objects
22to a finding of abandonment; (ii) a person other than the
23mortgagor appears at the hearing and presents evidence
24establishing to the satisfaction of the court that the
25mortgagor is working with, or making an attempt to work with,
26the mortgagee to modify the mortgage; or (iii) a person other



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1than the mortgagor appears at the hearing and presents evidence
2establishing to the satisfaction of the court that the
3mortgagor or a lawful occupant has not abandoned the property.
4    (i) The court shall vacate an order issued pursuant to
5subsection (g) of this Section if the mortgagor appears in the
6action at any time prior to the court issuing an order
7confirming the sale pursuant to subsection (b-3) of Section
815-1508 and presents evidence establishing to the satisfaction
9of the court that the mortgagor has not abandoned the property.
10    (j) The reinstatement period and redemption period for the
11abandoned residential property shall end in accordance with
12paragraph (4) of subsection (b) of Section 15-1603, and the
13property shall be sold at the earliest practicable time at a
14sale as provided in this Article.
15    (k) A mortgagee or its agent may enter an abandoned
16residential property at any time for the purpose of maintaining
17or securing the property, provided that entry is not barred by
18an automatic stay issued by a bankruptcy court. A mortgagee and
19its agents shall not be held liable for any claim of
20negligence, civil trespass, or criminal trespass based upon
21entering the abandoned residential property or maintaining or
22securing the abandoned residential property.
23    (l) Upon confirmation of the sale held pursuant to Section
2415-1507, any personal property remaining in or upon the
25abandoned residential property shall be deemed to have been
26abandoned by the owner of such personal property and may be



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1disposed of or donated by the holder of the certificate of sale
2(or, if none, by the purchaser at the sale). In the event of
3donation of any such personal property, the holder of the
4certificate of sale (or, if none, the purchaser at the sale)
5may transfer such donated property with a bill of sale. No
6mortgagee or its successors or assigns, holder of a certificate
7of sale, or purchaser at the sale shall be liable for any such
8disposal or donation of personal property.
9    (735 ILCS 5/15-1507.1)
10    (Section scheduled to be repealed on March 2, 2016)
11    Sec. 15-1507.1. Judicial sale fee for Abandoned
12Residential Property Municipality Relief Fund.
13    (a) Upon and at the sale of residential real estate under
14Section 15-1507, the purchaser shall pay to the person
15conducting the sale pursuant to Section 15-1507 a fee for
16deposit into the Abandoned Residential Property Municipality
17Relief Fund, a special fund created in the State treasury. The
18fee shall be calculated at the rate of $1 for each $1,000 or
19fraction thereof of the amount paid by the purchaser to the
20person conducting the sale, as reflected in the receipt of sale
21issued to the purchaser, provided that in no event shall the
22fee exceed $300. No fee shall be paid by the mortgagee
23acquiring the residential real estate pursuant to its credit
24bid at the sale or by any mortgagee, judgment creditor, or
25other lienor acquiring the residential real estate whose rights



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1in and to the residential real estate arose prior to the sale.
2Upon confirmation of the sale under Section 15-1508, the person
3conducting the sale shall remit the fee to the clerk of the
4court in which the foreclosure case is pending. The clerk shall
5remit the fee to the State Treasurer as provided in this
6Section, to be expended for the purposes set forth in Section
77.31 of the Illinois Housing Development Act.
8    (b) All fees paid by purchasers as provided in this Section
9shall be disbursed within 60 days after receipt by the clerk of
10the court as follows: (i) 98% to the State Treasurer for
11deposit into the Abandoned Residential Property Municipality
12Relief Fund, and (ii) 2% to the clerk of the court for
13administrative expenses related to implementation of this
15    (c) Not later than March 1 of each year, the clerk of the
16court shall submit to the Illinois Housing Development
17Authority a report of the funds collected and remitted during
18the preceding year pursuant to this Section.
19    (d) Subsections (a) and (b) of this Section shall become
20inoperative on January 1, 2016. This Section is repealed on
21March 2, 2016.
22(Source: P.A. 96-1419, eff. 10-1-10.)
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 by first-class mail to the
5last known address of the mortgagor, which motion shall be made
6prior to the sale and heard by the court at the earliest
7practicable time after conclusion of the sale, the court shall
8enter an order confirming the sale of the abandoned residential
9property, unless the court finds that a reason set forth in
10items (i) through (iv) of subsection (b) of this Section exists
11for not approving the sale. The confirmation order also may
12address the matters identified in items (1) through (3) of
13subsection (b) of this Section. Notwithstanding anything to the
14contrary in this Section, the order confirming the sale of the
15abandoned residential property shall award to the purchaser
16possession of the property as of the date of the entry of the
17order confirming the sale, and the notice required under
18subsection (b-5) of this Section shall not be required.
19    (b-5) Notice with respect to residential real estate. With
20respect to residential real estate, the notice required under
21subsection (b) of this Section shall be sent to the mortgagor
22even if the mortgagor has previously been held in default. In
23the event the mortgagor has filed an appearance, the notice
24shall be sent to the address indicated on the appearance. In
25all other cases, the notice shall be sent to the mortgagor at
26the common address of the foreclosed property. The notice shall



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1be sent by first class mail. Unless the right to possession has
2been previously terminated by the court, the notice shall
3include the following language in 12-point boldface
4capitalized type:
9    (b-10) Notice of confirmation order sent to municipality or
10county. A copy of the confirmation order required under
11subsection (b) shall be sent to the municipality in which the
12foreclosed property is located, or to the county within the
13boundary of which the foreclosed property is located if the
14foreclosed property is located in an unincorporated territory.
15A municipality or county must clearly publish on its website a
16single address to which such notice shall be sent. If a
17municipality or county does not maintain a website, then the
18municipality or county must publicly post in its main office a
19single address to which such notice shall be sent. In the event
20that a municipality or county has not complied with the
21publication requirement in this subsection (b-10), then such
22notice to the municipality or county shall be provided pursuant
23to Section 2-211 of the Code of Civil Procedure.
24    (c) Failure to Give Notice. If any sale is held without
25compliance with subsection (c) of Section 15-1507 of this
26Article, any party entitled to the notice provided for in



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1paragraph (3) of that subsection (c) who was not so notified
2may, by motion supported by affidavit made prior to
3confirmation of such sale, ask the court which entered the
4judgment to set aside the sale. Any such party shall guarantee
5or secure by bond a bid equal to the successful bid at the
6prior sale, unless the party seeking to set aside the sale is
7the mortgagor, the real estate sold at the sale is residential
8real estate, and the mortgagor occupies the residential real
9estate at the time the motion is filed. In that event, no
10guarantee or bond shall be required of the mortgagor. Any
11subsequent sale is subject to the same notice requirement as
12the original sale.
13    (d) Validity of Sale. Except as provided in subsection (c)
14of Section 15-1508, no sale under this Article shall be held
15invalid or be set aside because of any defect in the notice
16thereof or in the publication of the same, or in the
17proceedings of the officer conducting the sale, except upon
18good cause shown in a hearing pursuant to subsection (b) of
19Section 15-1508. At any time after a sale has occurred, any
20party entitled to notice under paragraph (3) of subsection (c)
21of Section 15-1507 may recover from the mortgagee any damages
22caused by the mortgagee's failure to comply with such paragraph
23(3). Any party who recovers damages in a judicial proceeding
24brought under this subsection may also recover from the
25mortgagee the reasonable expenses of litigation, including
26reasonable attorney's fees.



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1    (d-5) Making Home Affordable Program. The court that
2entered the judgment shall set aside a sale held pursuant to
3Section 15-1507, upon motion of the mortgagor at any time prior
4to the confirmation of the sale, if the mortgagor proves by a
5preponderance of the evidence that (i) the mortgagor has
6applied for assistance under the Making Home Affordable Program
7established by the United States Department of the Treasury
8pursuant to the Emergency Economic Stabilization Act of 2008,
9as amended by the American Recovery and Reinvestment Act of
102009, and (ii) the mortgaged real estate was sold in material
11violation of the program's requirements for proceeding to a
12judicial sale. The provisions of this subsection (d-5), except
13for this sentence, shall become inoperative on January 1, 2013
14for all actions filed under this Article after December 31,
152012, in which the mortgagor did not apply for assistance under
16the Making Home Affordable Program on or before December 31,
18    (e) Deficiency Judgment. In any order confirming a sale
19pursuant to the judgment of foreclosure, the court shall also
20enter a personal judgment for deficiency against any party (i)
21if otherwise authorized and (ii) to the extent requested in the
22complaint and proven upon presentation of the report of sale in
23accordance with Section 15-1508. Except as otherwise provided
24in this Article, a judgment may be entered for any balance of
25money that may be found due to the plaintiff, over and above
26the proceeds of the sale or sales, and enforcement may be had



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



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1personally name, include, or seek an award of possession of the
2mortgaged real estate against a person in the confirmation
3order shall not abrogate any right that the purchaser may have
4to possession of the mortgaged real estate and to maintain a
5proceeding against that person for possession under Article 9
6of this Code or subsection (h) of Section 15-1701; and
7possession against a person who (1) has not been personally
8named as a party to the foreclosure and (2) has not been
9provided an opportunity to be heard in the foreclosure
10proceeding may be sought only by maintaining a proceeding under
11Article 9 of this Code or subsection (h) of Section 15-1701.
12    (h) With respect to mortgaged real estate containing 5 or
13more dwelling units, the order confirming the sale shall also
14provide that (i) the mortgagor shall transfer to the purchaser
15the security deposits, if any, that the mortgagor received to
16secure payment of rent or to compensate for damage to the
17mortgaged real estate from any current occupant of a dwelling
18unit of the mortgaged real estate, as well as any statutory
19interest that has not been paid to the occupant, and (ii) the
20mortgagor shall provide an accounting of the security deposits
21that are transferred, including the name and address of each
22occupant for whom the mortgagor holds the deposit and the
23amount of the deposit and any statutory interest.
24(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
2596-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.



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1    (735 ILCS 5/15-1603)  (from Ch. 110, par. 15-1603)
2    Sec. 15-1603. Redemption.
3    (a) Owner of Redemption. Except as provided in subsection
4(b) of Section 15-1402, only an owner of redemption may redeem
5from the foreclosure, and such owner of redemption may redeem
6only during the redemption period specified in subsection (b)
7of Section 15-1603 and only if the right of redemption has not
8been validly waived.
9    (b) Redemption Period.
10        (1) In the foreclosure of a mortgage of real estate
11    which is residential real estate at the time the
12    foreclosure is commenced, the redemption period shall end
13    on the later of (i) the date 7 months from the date the
14    mortgagor or, if more than one, all the mortgagors (A) have
15    been served with summons or by publication or (B) have
16    otherwise submitted to the jurisdiction of the court, or
17    (ii) the date 3 months from the date of entry of a judgment
18    of foreclosure.
19        (2) In all other foreclosures, the redemption period
20    shall end on the later of (i) the date 6 months from the
21    date the mortgagor or, if more than one, all the mortgagors
22    (A) have been served with summons or by publication or (B)
23    have otherwise submitted to the jurisdiction of the court,
24    or (ii) the date 3 months from the date of entry of a
25    judgment of foreclosure.



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1        (3) Notwithstanding paragraphs (1) and (2), the
2    redemption period shall end at the later of the expiration
3    of any reinstatement period provided for in Section 15-1602
4    or the date 60 days after the date the judgment of
5    foreclosure is entered, if the court finds that (i) the
6    value of the mortgaged real estate as of the date of the
7    judgment is less than 90% of the amount specified pursuant
8    to subsection (d) of Section 15-1603 and (ii) the mortgagee
9    waives any and all rights to a personal judgment for a
10    deficiency against the mortgagor and against all other
11    persons liable for the indebtedness or other obligations
12    secured by the mortgage.
13        (4) Notwithstanding paragraphs (1) and (2), the
14    redemption period shall end on the date 30 days after the
15    date the judgment of foreclosure is entered if the court
16    has found finds that the mortgaged real estate is abandoned
17    residential property, the redemption period shall end on
18    the date of and immediately prior to the judicial sale
19    conducted under Section 15-1507 has been abandoned. In
20    cases where the redemption period is shortened on account
21    of abandonment, the reinstatement period shall not extend
22    beyond the date the judgment of foreclosure is entered
23    redemption period as shortened.
24    (c) Extension of Redemption Period.
25        (1) Once expired, the right of redemption provided for
26    in Sections 15-1603 or 15-1604 shall not be revived. The



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1    period within which the right of redemption provided for in
2    Sections 15-1603 or 15-1604 may be exercised runs
3    independently of any action by any person to enforce the
4    judgment of foreclosure or effect a sale pursuant thereto.
5    Neither the initiation of any legal proceeding nor the
6    order of any court staying the enforcement of a judgment of
7    foreclosure or the sale pursuant to a judgment or the
8    confirmation of the sale, shall have the effect of tolling
9    the running of the redemption period.
10        (2) If a court has the authority to stay, and does
11    stay, the running of the redemption period, or if the
12    redemption period is extended by any statute of the United
13    States, the redemption period shall be extended until the
14    expiration of the same number of days after the expiration
15    of the stay order as the number of days remaining in the
16    redemption period at the time the stay order became
17    effective, or, if later, until the expiration of 30 days
18    after the stay order terminates. If the stay order
19    terminates more than 30 days prior to the expiration of the
20    redemption period, the redemption period shall not be
21    extended.
22    (d) Amount Required to Redeem. The amount required to
23redeem shall be the sum of:
24        (1) The amount specified in the judgment of
25    foreclosure, which shall consist of (i) all principal and
26    accrued interest secured by the mortgage and due as of the



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



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



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1    statement specifying the expenses to which objection is
2    made. In such case the clerk shall pay to the mortgagee the
3    amount tendered minus the amount to which the objection
4    pertains.
5        (3) Upon payment to the clerk, whether or not the owner
6    of redemption files an objection at the time of payment,
7    the clerk shall give a receipt of payment to the person
8    redeeming from the foreclosure, and shall file a copy of
9    that receipt in the foreclosure record. Upon receipt of the
10    amounts specified to be paid to the mortgagee pursuant to
11    this Section, the mortgagee shall promptly furnish the
12    mortgagor with a release of the mortgage or satisfaction of
13    the judgment, as appropriate, and the evidence of all
14    indebtedness secured by the mortgage shall be cancelled.
15    (g) Procedure Upon Objection. If an objection is filed by
16an owner of redemption in accordance with paragraph (2) of
17subsection (f) of Section 15-1603, the clerk shall hold the
18amount to which the objection pertains until the court orders
19distribution of those funds. The court shall hold a hearing
20promptly to determine the distribution of any funds held by the
21clerk pursuant to such objection. Each party shall pay its own
22costs and expenses in connection with any objection, including
23attorneys' fees, subject to Section 2-611 of the Code of Civil
25    (h) Failure to Redeem. Unless the real estate being
26foreclosed is redeemed from the foreclosure, it shall be sold



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1as provided in this Article.
2(Source: P.A. 86-974.)
3    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
4    Sec. 15-1701. Right to possession.
5    (a) General. The provisions of this Article shall govern
6the right to possession of the mortgaged real estate during
7foreclosure. Possession under this Article includes physical
8possession of the mortgaged real estate to the same extent to
9which the mortgagor, absent the foreclosure, would have been
10entitled to physical possession. For the purposes of Part 17,
11real estate is residential real estate only if it is
12residential real estate at the time the foreclosure is
14    (a-5) Abandoned residential property. Notwithstanding
15anything to the contrary in this Section, the holder of the
16certificate of sale or deed issued pursuant to that certificate
17or, if no certificate or deed was issued, the purchaser, of the
18abandoned residential property shall be entitled to possession
19of the property as of the date the order confirming the sale of
20the abandoned residential property is entered.
21    (b) Pre-Judgment. Prior to the entry of a judgment of
23        (1) In the case of residential real estate, the
24    mortgagor shall be entitled to possession of the real
25    estate except if (i) the mortgagee shall object and show



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1    good cause, (ii) the mortgagee is so authorized by the
2    terms of the mortgage or other written instrument, and
3    (iii) the court is satisfied that there is a reasonable
4    probability that the mortgagee will prevail on a final
5    hearing of the cause, the court shall upon request place
6    the mortgagee in possession. If the residential real estate
7    consists of more than one dwelling unit, then for the
8    purpose of this Part residential real estate shall mean
9    only that dwelling unit or units occupied by persons
10    described in clauses (i), (ii) and (iii) of Section
11    15-1219.
12        (2) In all other cases, if (i) the mortgagee is so
13    authorized by the terms of the mortgage or other written
14    instrument, and (ii) the court is satisfied that there is a
15    reasonable probability that the mortgagee will prevail on a
16    final hearing of the cause, the mortgagee shall upon
17    request be placed in possession of the real estate, except
18    that if the mortgagor shall object and show good cause, the
19    court shall allow the mortgagor to remain in possession.
20    (c) Judgment Through 30 Days After Sale Confirmation. After
21the entry of a judgment of foreclosure and through the 30th day
22after a foreclosure sale is confirmed:
23        (1) Subsection (b) of Section 15-1701 shall be
24    applicable, regardless of the provisions of the mortgage or
25    other instrument, except that after a sale pursuant to the
26    judgment the holder of the certificate of sale (or, if



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1    none, the purchaser at the sale) shall have the mortgagee's
2    right to be placed in possession, with all rights and
3    duties of a mortgagee in possession under this Article.
4        (2) Notwithstanding paragraph (1) of subsection (b)
5    and paragraph (1) of subsection (c) of Section 15-1701,
6    upon request of the mortgagee, a mortgagor of residential
7    real estate shall not be allowed to remain in possession
8    between the expiration of the redemption period and through
9    the 30th day after sale confirmation unless (i) the
10    mortgagor pays to the mortgagee or such holder or
11    purchaser, whichever is applicable, monthly the lesser of
12    the interest due under the mortgage calculated at the
13    mortgage rate of interest applicable as if no default had
14    occurred or the fair rental value of the real estate, or
15    (ii) the mortgagor otherwise shows good cause. Any amounts
16    paid by the mortgagor pursuant to this subsection shall be
17    credited against the amounts due from the mortgagor.
18    (d) After 30 Days After Sale Confirmation. The holder of
19the certificate of sale or deed issued pursuant to that
20certificate or, if no certificate or deed was issued, the
21purchaser, except to the extent the holder or purchaser may
22consent otherwise, shall be entitled to possession of the
23mortgaged real estate, as of the date 30 days after the order
24confirming the sale is entered, against those parties to the
25foreclosure whose interests the court has ordered terminated,
26without further notice to any party, further order of the



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1court, or resort to proceedings under any other statute other
2than this Article. This right to possession shall be limited by
3the provisions governing entering and enforcing orders of
4possession under subsection (g) of Section 15-1508. If the
5holder or purchaser determines that there are occupants of the
6mortgaged real estate who have not been made parties to the
7foreclosure and had their interests terminated therein, the
8holder or purchaser may bring a proceeding under subsection (h)
9of this Section or under Article 9 of this Code to terminate
10the rights of possession of any such occupants. The holder or
11purchaser shall not be entitled to proceed against any such
12occupant under Article 9 of this Code until after 30 days after
13the order confirming the sale is entered.
14    (e) Termination of Leases. A lease of all or any part of
15the mortgaged real estate shall not be terminated automatically
16solely by virtue of the entry into possession by (i) a
17mortgagee or receiver prior to the entry of an order confirming
18the sale, (ii) the holder of the certificate of sale, (iii) the
19holder of the deed issued pursuant to that certificate, or (iv)
20if no certificate or deed was issued, the purchaser at the
22    (f) Other Statutes; Instruments. The provisions of this
23Article providing for possession of mortgaged real estate shall
24supersede any other inconsistent statutory provisions. In
25particular, and without limitation, whenever a receiver is
26sought to be appointed in any action in which a foreclosure is



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1also pending, a receiver shall be appointed only in accordance
2with this Article. Except as may be authorized by this Article,
3no mortgage or other instrument may modify or supersede the
4provisions of this Article.
5    (g) Certain Leases. Leases of the mortgaged real estate
6entered into by a mortgagee in possession or a receiver and
7approved by the court in a foreclosure shall be binding on all
8parties, including the mortgagor after redemption, the
9purchaser at a sale pursuant to a judgment of foreclosure and
10any person acquiring an interest in the mortgaged real estate
11after entry of a judgment of foreclosure in accordance with
12Sections 15-1402 and 15-1403.
13    (h) Proceedings Against Certain Occupants.
14        (1) The mortgagee-in-possession of the mortgaged real
15    estate under Section 15-1703, a receiver appointed under
16    Section 15-1704, a holder of the certificate of sale or
17    deed, or the purchaser may, at any time during the pendency
18    of the foreclosure and up to 90 days after the date of the
19    order confirming the sale, file a supplemental petition for
20    possession against a person not personally named as a party
21    to the foreclosure. The supplemental petition for
22    possession shall name each such occupant against whom
23    possession is sought and state the facts upon which the
24    claim for relief is premised.
25        (2) The petitioner shall serve upon each named occupant
26    the petition, a notice of hearing on the petition, and, if



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1    any, a copy of the certificate of sale or deed. The
2    proceeding for the termination of such occupant's
3    possessory interest, including service of the notice of the
4    hearing and the petition, shall in all respects comport
5    with the requirements of Article 9 of this Code, except as
6    otherwise specified in this Section. The hearing shall be
7    no less than 21 days from the date of service of the
8    notice.
9        (3) The supplemental petition shall be heard as part of
10    the foreclosure proceeding and without the payment of
11    additional filing fees. An order for possession obtained
12    under this Section shall name each occupant whose interest
13    has been terminated, shall recite that it is only effective
14    as to the occupant so named and those holding under them,
15    and shall be enforceable for no more than 120 days after
16    its entry, except that the 120-day period may be extended
17    to the extent and in the manner provided in Section 9-117
18    of Article 9 and except as provided in item (4) of this
19    subsection (h).
20        (4) In a case of foreclosure where the occupant is
21    current on his or her rent, or where timely written notice
22    of to whom and where the rent is to be paid has not been
23    provided to the occupant, or where the occupant has made
24    good-faith efforts to make rental payments in order to keep
25    current, any order of possession must allow the occupant to
26    retain possession of the property covered in his or her



09700SB2534sam003- 38 -LRB097 14747 AJO 68884 a

1    rental agreement (i) for 120 days following the notice of
2    the hearing on the supplemental petition that has been
3    properly served upon the occupant, or (ii) through the
4    duration of his or her lease, whichever is shorter,
5    provided that if the duration of his or her lease is less
6    than 30 days from the date of the order, the order shall
7    allow the occupant to retain possession for 30 days from
8    the date of the order. A mortgagee in possession, receiver,
9    holder of a certificate of sale or deed, or purchaser at
10    the judicial sale, who asserts that the occupant is not
11    current in rent, shall file an affidavit to that effect in
12    the supplemental petition proceeding. If the occupant has
13    been given timely written notice of to whom and where the
14    rent is to be paid, this item (4) shall only apply if the
15    occupant continues to pay his or her rent in full during
16    the 120-day period or has made good-faith efforts to pay
17    the rent in full during that period. No
18    mortgagee-in-possession, receiver or holder of a
19    certificate of sale or deed, or purchaser who fails to file
20    a supplemental petition under this subsection during the
21    pendency of a mortgage foreclosure shall file a forcible
22    entry and detainer action against an occupant of the
23    mortgaged real estate until 90 days after a notice of
24    intent to file such action has been properly served upon
25    the occupant.
26        (5) The court records relating to a supplemental



09700SB2534sam003- 39 -LRB097 14747 AJO 68884 a

1    petition for possession filed under this subsection (h)
2    against an occupant who is entitled to notice under item
3    (4) of this subsection (h), or relating to a forcible entry
4    and detainer action brought against an occupant who would
5    have lawful possession of the premises but for the
6    foreclosure of a mortgage on the property, shall be ordered
7    sealed and shall not be disclosed to any person, other than
8    a law enforcement officer or any other representative of a
9    governmental entity, except upon further order of the
10    court.
11(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60,
12eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".