Full Text of SB0056 98th General Assembly
SB0056enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Code of Civil Procedure is amended by | 5 | | changing Sections 9-121, 9-205, 9-207, 15-1202.5, 15-1501, | 6 | | 15-1506, 15-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704 and | 7 | | by adding Sections 9-207.5, 15-1224, and 15-1225 as follows: | 8 | | (735 ILCS 5/9-121) | 9 | | Sec. 9-121. Sealing of court file. | 10 | | (a) Definition. As used in this Section, "court file"
means | 11 | | the court file created when a forcible entry and detainer
| 12 | | action is filed with the court. | 13 | | (b) Discretionary sealing of court file. The court may
| 14 | | order that a court file in a forcible entry and detainer action
| 15 | | be placed under seal if the court finds that the plaintiff's
| 16 | | action is sufficiently without a basis in fact or law, which
| 17 | | may include a lack of jurisdiction, that placing the court file
| 18 | | under seal is clearly in the interests of justice, and that
| 19 | | those interests are not outweighed by the public's interest in
| 20 | | knowing about the record. | 21 | | (c) Mandatory sealing of court file. The court file | 22 | | relating to a forcible entry and detainer action brought | 23 | | against a tenant under Section 9-207.5 of this Code or as set |
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| 1 | | forth in subdivision (h)(6) of Section 15-1701 of this Code | 2 | | shall be placed under seal who would have lawful possession of | 3 | | the premises but for the foreclosure on the property shall be | 4 | | sealed pursuant to Section 15-1701 .
| 5 | | (Source: P.A. 96-1131, eff. 7-20-10.)
| 6 | | (735 ILCS 5/9-205) (from Ch. 110, par. 9-205)
| 7 | | Sec. 9-205. Notice to terminate tenancy from year to year. | 8 | | Except as
provided in Section 9-206 and Section 9-207.5 of this | 9 | | Act, in all cases of tenancy
from year to year, 60 days' | 10 | | notice, in writing, shall be sufficient to
terminate the | 11 | | tenancy at the end of the year. The notice may be given at
any | 12 | | time within 4 months preceding the last 60 days of the year.
| 13 | | (Source: P.A. 82-280.)
| 14 | | (735 ILCS 5/9-207) (from Ch. 110, par. 9-207)
| 15 | | Sec. 9-207. Notice to terminate tenancy for less than a | 16 | | year. | 17 | | (a) Except as provided in Section 9-207.5 of this Code, in | 18 | | In all
cases of tenancy from week to week, where the tenant
| 19 | | holds over without special agreement, the landlord may | 20 | | terminate the
tenancy by 7 days' notice, in writing, and may | 21 | | maintain an action
for forcible entry and detainer or | 22 | | ejectment.
| 23 | | (b) Except as provided in Section 9-207.5 of this Code, in | 24 | | In all cases of tenancy for any term less than one year, other |
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| 1 | | than
tenancy from week to week, where the tenant holds over | 2 | | without special
agreement, the landlord may terminate the | 3 | | tenancy by 30 days'
notice, in writing, and may maintain an | 4 | | action for forcible entry and
detainer or ejectment.
| 5 | | (Source: P.A. 82-280.)
| 6 | | (735 ILCS 5/9-207.5 new) | 7 | | Sec. 9-207.5. Termination of bona fide leases in | 8 | | residential real estate in foreclosure. | 9 | | (a) A mortgagee, receiver, holder of the certificate of | 10 | | sale, holder of the deed issued pursuant to that certificate, | 11 | | or, if no certificate or deed was issued, the purchaser at a | 12 | | judicial sale under Section 15-1507 of this Code, who assumes | 13 | | control of the residential real estate in foreclosure, as | 14 | | defined in Section 15-1225 of this Code, may terminate a bona | 15 | | fide lease, as defined in Section 15-1224 of this Code, only: | 16 | | (i) at the end of the term of the bona fide lease, by no less | 17 | | than 90 days' written notice or (ii) in the case of a bona fide | 18 | | lease that is for a month-to-month or week-to-week term, by no | 19 | | less than 90 days' written notice. | 20 | | (b) Notwithstanding the provisions of subsection (a) of | 21 | | this Section, an individual who assumes control of residential | 22 | | real estate in foreclosure pursuant to a judicial sale and who | 23 | | will occupy a dwelling unit of the residential real estate in | 24 | | foreclosure as his or her primary residence may terminate the | 25 | | bona fide lease for the dwelling unit subject to the 90-day |
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| 1 | | notice requirement of subsection (a) of this Section. | 2 | | (c) Nothing in this Section or Section 15-1224 of this Code | 3 | | shall abrogate the rights of a mortgagee, receiver, holder of | 4 | | the certificate of sale, holder of the deed issued pursuant to | 5 | | that certificate, or, if no certificate or deed was issued, the | 6 | | purchaser at a judicial sale, who assumes control of the | 7 | | residential real estate in foreclosure to terminate a bona fide | 8 | | lease of a dwelling unit in residential real estate in | 9 | | foreclosure under Section 9-118, 9-119, 9-120, 9-201, 9-202, | 10 | | 9-203, 9-204, 9-209, or 9-210 of this Code. | 11 | | (735 ILCS 5/15-1202.5)
| 12 | | Sec. 15-1202.5. Dwelling unit. For the purposes of Sections | 13 | | 9-207.5, 15-1224, 15-1225, 15-1506, 15-1508, 15-1508.5, | 14 | | 15-1701, 15-1703, and 15-1704 only, "dwelling unit" means a | 15 | | room or suite of rooms providing complete, independent living | 16 | | facilities for at least one person, including permanent | 17 | | provisions for sanitation, cooking, eating, sleeping, and | 18 | | other activities routinely associated with daily life.
| 19 | | (Source: P.A. 96-111, eff. 10-29-09; 97-575, eff. 8-26-11.) | 20 | | (735 ILCS 5/15-1224 new) | 21 | | Sec. 15-1224. Bona fide lease. | 22 | | (a) For purposes of Sections 9-207.5, 15-1225, 15-1506, | 23 | | 15-1508, and 15-1701 of this Code only, the term "bona fide | 24 | | lease" means a lease of a dwelling unit in residential real |
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| 1 | | estate in foreclosure for which: | 2 | | (1) the mortgagor or the child, spouse, or parent of | 3 | | the mortgagor is not the tenant; | 4 | | (2) the lease was the result of an arms-length | 5 | | transaction; | 6 | | (3) the lease requires the receipt of rent that is not | 7 | | substantially less than fair market rent for the property | 8 | | or the rent is reduced or subsidized pursuant to a federal, | 9 | | State, or local subsidy; and | 10 | | (4) either (i) the lease was entered into or renewed on | 11 | | or before the date of the filing of the lis pendens on the | 12 | | residential real estate in foreclosure pursuant to Section | 13 | | 2-1901 of this Code or (ii) the lease was entered into or | 14 | | renewed after the date of the filing of the lis pendens on | 15 | | the residential real estate in foreclosure and before the | 16 | | date of the judicial sale of the residential real estate in | 17 | | foreclosure, and the term of the lease is for one year or | 18 | | less. | 19 | | (b) A written lease for a term exceeding one year that is | 20 | | entered into or renewed after the date of the filing of the lis | 21 | | pendens on the residential real estate in foreclosure pursuant | 22 | | to Section 2-1901 of this Code and before the date of the | 23 | | judicial sale of the residential real estate in foreclosure | 24 | | that otherwise meets the requirements of subsection (a) of this | 25 | | Section shall be deemed to be a bona fide lease for a term of | 26 | | one year. |
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| 1 | | (c) An oral lease entered into at any time before the date | 2 | | of the judicial sale of the residential real estate in | 3 | | foreclosure that otherwise meets the requirements of | 4 | | subsection (a) of this Section shall be deemed to be a bona | 5 | | fide lease for a month-to-month term, unless the lessee proves | 6 | | by a preponderance of evidence that the oral lease is for a | 7 | | longer term. In no event shall an oral lease be deemed to be a | 8 | | bona fide lease for a term of more than one year. | 9 | | (d) A written or oral lease entered into on or after the | 10 | | date of the judicial sale of the residential real estate in | 11 | | foreclosure and before the date of the court order confirming | 12 | | the judicial sale that otherwise meets the requirements of | 13 | | subsection (a) of this Section shall be deemed to be a bona | 14 | | fide lease for a month-to-month term. | 15 | | (e) Notwithstanding paragraph (1) of subsection (a) of this | 16 | | Section, a child, spouse, or parent of the mortgagor may prove | 17 | | by a preponderance of evidence that a written or oral lease | 18 | | that otherwise meets the requirements of subsection (a) of this | 19 | | Section is a bona fide lease. | 20 | | (735 ILCS 5/15-1225 new) | 21 | | Sec. 15-1225. Residential real estate in foreclosure. For | 22 | | purposes of Sections 9-207.5, 15-1224, 15-1506, 15-1508, and | 23 | | 15-1701 of this Code only, the term "residential real estate in | 24 | | foreclosure" means any real estate, except a single tract of | 25 | | agricultural real estate consisting of more than 40 acres, |
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| 1 | | which is improved with a single family residence or residential | 2 | | condominium units or a multiple dwelling structure containing | 3 | | single family dwelling units for one or more families living | 4 | | independently of one another, for which an action to foreclose | 5 | | the real estate: (1) has commenced and is pending; (2) was | 6 | | pending when the bona fide lease was entered into or renewed; | 7 | | or (3) was commenced after the bona fide lease was entered into | 8 | | or renewed.
| 9 | | (735 ILCS 5/15-1501) (from Ch. 110, par. 15-1501)
| 10 | | Sec. 15-1501. Parties.
| 11 | | (a) Necessary Parties. For the purposes of
Section 2-405 of | 12 | | the Code of Civil Procedure, only (i) the mortgagor and (ii)
| 13 | | other
persons (but not guarantors)
who owe payment of | 14 | | indebtedness or the performance of other
obligations secured by | 15 | | the mortgage and against whom personal liability is
asserted | 16 | | shall be necessary parties defendant in
a foreclosure. The | 17 | | court may proceed to adjudicate their respective
interests, but | 18 | | any disposition of the mortgaged real estate shall be
subject | 19 | | to (i) the interests of all other persons not made a party or | 20 | | (ii)
interests in the mortgaged real estate not otherwise | 21 | | barred or
terminated in the foreclosure.
| 22 | | (b) Permissible Parties. Any party may join as a party any | 23 | | other
person, although such person is not a necessary party, | 24 | | including, without
limitation, the following:
| 25 | | (1) All persons having a possessory interest in the |
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| 1 | | mortgaged real estate;
| 2 | | (2) A mortgagor's spouse who has waived the right of | 3 | | homestead;
| 4 | | (3) A trustee holding an interest in the mortgaged real | 5 | | estate or a
beneficiary of such trust;
| 6 | | (4) The owner or holder of a note secured by a trust | 7 | | deed;
| 8 | | (5) Guarantors, provided that in a foreclosure any such | 9 | | guarantor also
may be joined as a party in a separate count | 10 | | in an action on such guarantor's guaranty;
| 11 | | (6) The State of Illinois or any political subdivision | 12 | | thereof, where a
foreclosure involves real estate upon | 13 | | which the State or such subdivision
has an interest or | 14 | | claim for lien, in which case "An Act in relation to
| 15 | | immunity for the State of Illinois", approved December 10,
| 16 | | 1971, as amended, shall not be effective;
| 17 | | (7) The United States of America or any agency or | 18 | | department thereof
where a foreclosure involves real | 19 | | estate upon which the United States of
America or such | 20 | | agency or department has an interest or a claim for lien;
| 21 | | (8) Any assignee of leases or rents relating to the | 22 | | mortgaged real estate;
| 23 | | (9) Any person who may have a lien under the Mechanic's | 24 | | Lien Act; and
| 25 | | (10) Any other mortgagee or claimant.
| 26 | | (c) Unknown Owners. Any unknown owner may be made a party |
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| 1 | | in accordance
with Section 2-413 of the Code of Civil | 2 | | Procedure.
| 3 | | (d) Right to Become Party. Any person who has or claims an | 4 | | interest in
real estate which is the subject of a foreclosure | 5 | | or an interest in any
debt secured by the mortgage shall have | 6 | | an unconditional
right to appear and become a party in such | 7 | | foreclosure in accordance with
subsection (e) of Section | 8 | | 15-1501, provided, that neither such
appearance by a lessee
| 9 | | whose interest in the real estate is subordinate to the | 10 | | interest being
foreclosed, nor the act of making such lessee a | 11 | | party,
shall result in the termination of the lessee's lease | 12 | | unless the
termination of the lease or lessee's interest in the | 13 | | mortgaged real estate is
specifically
ordered by the court in | 14 | | the judgment of foreclosure.
| 15 | | (e) Time of Intervention.
| 16 | | (1) Of Right. A person not a party, other
than a | 17 | | nonrecord claimant given notice in accordance with | 18 | | paragraph (2) of
subsection (c) of Section 15-1502,
who has | 19 | | or claims an interest in the mortgaged real estate may | 20 | | appear and
become a party at any time prior to the entry of | 21 | | judgment of foreclosure.
A nonrecord claimant given such | 22 | | notice may appear and become a party at any
time prior to | 23 | | the earlier of (i) the entry of a judgment of
foreclosure | 24 | | or (ii) 30 days after such notice is given.
| 25 | | (2) In Court's Discretion. After the right to intervene | 26 | | expires and prior
to the sale in accordance with the |
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| 1 | | judgment, the court may permit a person
who has or claims | 2 | | an interest in the mortgaged real estate to appear and
| 3 | | become a party on such terms as the court may deem just.
| 4 | | (3) Later Right. After the sale of the mortgaged real | 5 | | estate in
accordance with a judgment of foreclosure and | 6 | | prior to the entry of an
order confirming the sale, a | 7 | | person who has or claims an interest in the
mortgaged real | 8 | | estate, may appear and become a party, on such terms as the
| 9 | | court may deem
just, for the sole purpose of claiming an | 10 | | interest in the proceeds of sale.
Any such party shall be | 11 | | deemed a party from the commencement of the
foreclosure, | 12 | | and the interest of such party in the real estate shall be
| 13 | | subject to all orders and judgments entered in the | 14 | | foreclosure.
| 15 | | (4) Termination of Interest. Except as provided in | 16 | | Section 15-1501(d),
the interest of any person who is | 17 | | allowed to appear and become a party
shall be terminated, | 18 | | and the interest of such party in the real estate
shall | 19 | | attach to the proceeds of sale.
| 20 | | (f) Separate Actions. Any mortgagee or claimant, other than | 21 | | the
mortgagee who commences a foreclosure, whose interest in | 22 | | the mortgaged real
estate is recorded prior to the filing of a | 23 | | notice of foreclosure in
accordance with this Article but who | 24 | | is not made a party to such
foreclosure, shall not be barred | 25 | | from filing a separate foreclosure (i) as
an intervening | 26 | | defendant or counterclaimant in accordance with subsections
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| 1 | | (d) and (e) of Section
15-1501 if a judgment of foreclosure has | 2 | | not been entered
in the original foreclosure or (ii) in a new | 3 | | foreclosure subsequent to the
entry of a judgment of | 4 | | foreclosure in the original foreclosure.
| 5 | | (g) Service on the State of Illinois. When making the State | 6 | | of
Illinois a party to a foreclosure, summons may be served by | 7 | | sending, by
registered or certified mail, a copy of the summons | 8 | | and the complaint to
the Attorney General. The complaint shall | 9 | | set forth with particularity the
nature of the interest or lien | 10 | | of the State of Illinois. If such interest
or lien appears in a | 11 | | recorded instrument, the complaint must state the
document | 12 | | number of the instrument and the office wherein it was | 13 | | recorded.
| 14 | | (h) Special Representatives. The court is not required to | 15 | | appoint a special representative for a deceased mortgagor for | 16 | | the purpose of defending the action, if there is a living | 17 | | person that holds a 100% interest in the property that is the | 18 | | subject of the action, by virtue of being the deceased | 19 | | mortgagor's surviving joint tenant or surviving tenant by the | 20 | | entirety. In no event may a deficiency judgment be sought or | 21 | | entered in the foreclosure case pursuant to subsection (e) of | 22 | | Section 15-1508 against a deceased mortgagor. | 23 | | (Source: P.A. 88-265.)
| 24 | | (735 ILCS 5/15-1506) (from Ch. 110, par. 15-1506)
| 25 | | Sec. 15-1506. Judgment. |
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| 1 | | (a) Evidence. In the trial of a foreclosure, the evidence | 2 | | to support the
allegations of the complaint shall be taken in | 3 | | open court, except:
| 4 | | (1) where an allegation of fact in the complaint is not | 5 | | denied by a
party's verified answer or verified | 6 | | counterclaim, or where a party pursuant
to subsection (b) | 7 | | of Section 2-610 of the Code of Civil Procedure states,
or | 8 | | is deemed to have stated, in
its pleading that it has no | 9 | | knowledge
of such allegation sufficient to form a belief | 10 | | and attaches the required
affidavit, a sworn verification | 11 | | of the complaint or a separate affidavit
setting forth such | 12 | | fact is sufficient evidence thereof against such party
and | 13 | | no further evidence of such fact shall be required; and
| 14 | | (2) where all the allegations of fact in the complaint | 15 | | have been proved
by verification of the complaint or | 16 | | affidavit, the court upon motion
supported by an affidavit | 17 | | stating the amount which is due the mortgagee,
shall enter | 18 | | a judgment of foreclosure as requested in the complaint.
| 19 | | (b) Instruments. In all cases the evidence of the | 20 | | indebtedness and the
mortgage foreclosed shall be exhibited to | 21 | | the court and appropriately
marked, and copies thereof shall be | 22 | | filed with the court.
| 23 | | (c) Summary and Default Judgments. Nothing in this Section | 24 | | 15-1506
shall prevent a party from obtaining a summary or | 25 | | default judgment
authorized by Article II of the Code of Civil | 26 | | Procedure.
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| 1 | | (d) Notice of Entry of Default. When any judgment in a | 2 | | foreclosure is
entered by default, notice of such judgment | 3 | | shall be given in accordance
with Section 2-1302 of the Code of | 4 | | Civil Procedure.
| 5 | | (e) Matters Required in Judgment. A judgment of foreclosure | 6 | | shall
include the last date for redemption and all rulings of | 7 | | the court entered
with respect to each request for relief set | 8 | | forth in the complaint. The
omission of the date for redemption | 9 | | shall not extend the time for
redemption or impair the validity | 10 | | of the judgment.
| 11 | | (f) Special Matters in Judgment. Without limiting the | 12 | | general
authority and powers of the court, special matters may | 13 | | be included in the
judgment of foreclosure if sought by a party | 14 | | in the complaint or by separate
motion. Such matters may | 15 | | include, without limitation:
| 16 | | (1) a manner of sale other than public auction;
| 17 | | (2) a sale by sealed bid;
| 18 | | (3) an official or other person who shall be the | 19 | | officer to
conduct the sale other than the one customarily | 20 | | designated by the court;
| 21 | | (4) provisions for non-exclusive broker listings or | 22 | | designating a duly
licensed real estate broker nominated by | 23 | | one of the parties to exclusively
list the real estate for | 24 | | sale;
| 25 | | (5) the fees or commissions to be paid out of the sale | 26 | | proceeds to the
listing or other duly licensed broker, if |
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| 1 | | any, who shall have procured the accepted bid;
| 2 | | (6) the fees to be paid out of the sale proceeds to an | 3 | | auctioneer, if
any, who shall have been authorized to | 4 | | conduct a public auction sale;
| 5 | | (7) whether and in what manner and with what content | 6 | | signs shall be
posted on the real estate;
| 7 | | (8) a particular time and place at which such bids | 8 | | shall be received;
| 9 | | (9) a particular newspaper or newspapers in which | 10 | | notice of
sale shall be published;
| 11 | | (10) the format for the advertising of such sale,
| 12 | | including the size, content
and format of such advertising, | 13 | | and additional advertising of such sale;
| 14 | | (11) matters or exceptions to which title in the real | 15 | | estate may be subject
at the sale;
| 16 | | (12) a requirement that title insurance in a specified | 17 | | form be provided
to a purchaser at the sale, and who shall | 18 | | pay for such insurance;
| 19 | | (13) whether and to what extent bids with mortgage or | 20 | | other
contingencies will be allowed;
| 21 | | (14) such other matters as approved by the court to | 22 | | ensure sale of the
real estate for the most commercially | 23 | | favorable price for the type of real
estate involved.
| 24 | | (g) Agreement of the Parties. If all of the parties agree | 25 | | in writing on
the minimum price and that the real estate may be | 26 | | sold to the first person
who offers in writing to purchase the |
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| 1 | | real estate for such price, and on
such other commercially | 2 | | reasonable terms and conditions as the parties may
agree, then | 3 | | the court shall order the real estate to be sold on such terms,
| 4 | | subject to confirmation of the sale in accordance with Section | 5 | | 15-1508.
| 6 | | (h) Postponement of Proving Priority. With the approval of | 7 | | the court
prior to the entry of the judgment of foreclosure, a | 8 | | party claiming an
interest in the proceeds of the sale of the | 9 | | mortgaged real estate may defer
proving the priority of such | 10 | | interest until the hearing to confirm the sale.
| 11 | | (i) Effect of Judgment and Lien.
| 12 | | (1) Upon the entry of the judgment of foreclosure, all | 13 | | rights of a party
in the foreclosure against the mortgagor | 14 | | provided for in the judgment of foreclosure
or this Article | 15 | | shall be secured by a lien on the mortgaged
real estate, | 16 | | which lien shall have the same priority as the claim to
| 17 | | which the judgment relates and shall be terminated upon | 18 | | confirmation of a judicial
sale in accordance with this | 19 | | Article.
| 20 | | (2) Upon the entry of the judgment of foreclosure, the | 21 | | rights in the
real estate subject to the judgment of | 22 | | foreclosure of (i) all persons made
a party in the | 23 | | foreclosure and (ii) all nonrecord claimants given notice | 24 | | in
accordance with paragraph (2) of subsection (c) of | 25 | | Section 15-1502, shall
be solely as provided for in
the | 26 | | judgment of foreclosure and in this Article.
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| 1 | | (3) Entry of a judgment of foreclosure does not | 2 | | terminate or otherwise affect a bona fide lease of a | 3 | | dwelling unit in residential real estate in foreclosure, | 4 | | whether or not the lessee has been made a party in the | 5 | | foreclosure. | 6 | | (Source: P.A. 85-907.)
| 7 | | (735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508) | 8 | | (Text of Section before amendment by P.A. 97-1164 ) | 9 | | Sec. 15-1508. Report of Sale and Confirmation of Sale. | 10 | | (a) Report. The person conducting the sale shall promptly | 11 | | make a report to
the court, which report shall include a copy | 12 | | of all receipts and, if any,
certificate of sale. | 13 | | (b) Hearing. Upon motion and notice in accordance with | 14 | | court rules
applicable to motions generally, which motion shall | 15 | | not be made prior to
sale, the court shall conduct a hearing to
| 16 | | confirm the sale. Unless the court finds that (i) a notice | 17 | | required in
accordance with subsection (c) of Section 15-1507 | 18 | | was not given, (ii) the
terms of sale were unconscionable, | 19 | | (iii) the sale was conducted
fraudulently, or (iv) justice was | 20 | | otherwise not done, the court shall
then enter an order | 21 | | confirming the sale. The confirmation order shall include a | 22 | | name, address, and telephone number of the holder of the | 23 | | certificate of sale or deed issued pursuant to that certificate | 24 | | or, if no certificate or deed was issued, the purchaser, whom a | 25 | | municipality or county may contact with concerns about the real |
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| 1 | | estate. The confirmation order may
also: | 2 | | (1) approve the mortgagee's fees and costs arising | 3 | | between the entry of
the judgment of foreclosure and the | 4 | | confirmation hearing, those costs and
fees to be allowable | 5 | | to the same extent as provided in the note and mortgage
and | 6 | | in Section 15-1504; | 7 | | (2) provide for a personal judgment against any party | 8 | | for a deficiency;
and | 9 | | (3) determine the priority of the judgments of parties | 10 | | who deferred proving
the priority pursuant to subsection | 11 | | (h) of Section 15-1506, but
the court shall not
defer | 12 | | confirming the sale pending the determination of such | 13 | | priority. | 14 | | (b-5) Notice with respect to residential real estate. With | 15 | | respect to residential real estate, the notice required under | 16 | | subsection (b) of this Section shall be sent to the mortgagor | 17 | | even if the mortgagor has previously been held in default. In | 18 | | the event the mortgagor has filed an appearance, the notice | 19 | | shall be sent to the address indicated on the appearance. In | 20 | | all other cases, the notice shall be sent to the mortgagor at | 21 | | the common address of the foreclosed property. The notice shall | 22 | | be sent by first class mail. Unless the right to possession has | 23 | | been previously terminated by the court, the notice shall | 24 | | include the following language in 12-point boldface | 25 | | capitalized type: | 26 | | IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO |
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| 1 | | REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | 2 | | POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | 3 | | ILLINOIS MORTGAGE FORECLOSURE LAW. | 4 | | (b-10) Notice of confirmation order sent to municipality or | 5 | | county. A copy of the confirmation order required under | 6 | | subsection (b) shall be sent to the municipality in which the | 7 | | foreclosed property is located, or to the county within the | 8 | | boundary of which the foreclosed property is located if the | 9 | | foreclosed property is located in an unincorporated territory. | 10 | | A municipality or county must clearly publish on its website a | 11 | | single address to which such notice shall be sent. If a | 12 | | municipality or county does not maintain a website, then the | 13 | | municipality or county must publicly post in its main office a | 14 | | single address to which such notice shall be sent. In the event | 15 | | that a municipality or county has not complied with the | 16 | | publication requirement in this subsection (b-10), then such | 17 | | notice to the municipality or county shall be provided pursuant | 18 | | to Section 2-211 of the Code of Civil Procedure. | 19 | | (c) Failure to Give Notice. If any sale is held without | 20 | | compliance with
subsection (c) of Section 15-1507 of this | 21 | | Article, any party entitled to
the notice provided for in | 22 | | paragraph (3) of that subsection
(c) who was not so notified | 23 | | may, by motion supported by affidavit
made prior to | 24 | | confirmation of such sale, ask the court which entered the
| 25 | | judgment to set aside the sale. Any such party shall guarantee | 26 | | or secure by bond a bid equal to the successful bid at the |
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| 1 | | prior sale, unless the party seeking to set aside the sale is | 2 | | the mortgagor, the real estate sold at the sale is residential | 3 | | real estate, and the mortgagor occupies the residential real | 4 | | estate at the time the motion is filed. In that event, no | 5 | | guarantee or bond shall be required of the mortgagor. Any
| 6 | | subsequent sale is subject to the same notice requirement as | 7 | | the original sale. | 8 | | (d) Validity of Sale. Except as provided in subsection (c) | 9 | | of Section
15-1508, no sale under this Article shall be held | 10 | | invalid or be set aside
because of any defect in the notice | 11 | | thereof or in the publication of the
same, or in the | 12 | | proceedings of the officer conducting the sale, except upon
| 13 | | good cause shown in a hearing pursuant to subsection (b) of | 14 | | Section
15-1508. At any time after a sale has occurred, any | 15 | | party entitled to
notice under paragraph (3) of subsection (c) | 16 | | of Section 15-1507 may recover
from the mortgagee any damages | 17 | | caused by the mortgagee's failure to comply
with such paragraph | 18 | | (3). Any party who recovers damages in a judicial
proceeding | 19 | | brought under this subsection may also recover from the
| 20 | | mortgagee the reasonable expenses of litigation, including | 21 | | reasonable attorney's fees. | 22 | | (d-5) Making Home Affordable Program. The court that | 23 | | entered the judgment shall set aside a sale held pursuant to | 24 | | Section 15-1507, upon motion of the mortgagor at any time prior | 25 | | to the confirmation of the sale, if the mortgagor proves by a | 26 | | preponderance of the evidence that (i) the mortgagor has |
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| 1 | | applied for assistance under the Making Home Affordable Program | 2 | | established by the United States Department of the Treasury | 3 | | pursuant to the Emergency Economic Stabilization Act of 2008, | 4 | | as amended by the American Recovery and Reinvestment Act of | 5 | | 2009, and (ii) the mortgaged real estate was sold in material | 6 | | violation of the program's requirements for proceeding to a | 7 | | judicial sale. The provisions of this subsection (d-5), except | 8 | | for this sentence, shall become inoperative on January 1, 2014 | 9 | | for all actions filed under this Article after December 31, | 10 | | 2013, in which the mortgagor did not apply for assistance under | 11 | | the Making Home Affordable Program on or before December 31, | 12 | | 2013. | 13 | | (e) Deficiency Judgment. In any order confirming a sale | 14 | | pursuant to the
judgment of foreclosure, the court shall also | 15 | | enter a personal judgment
for deficiency against any party (i) | 16 | | if otherwise authorized and (ii) to
the extent requested in the | 17 | | complaint and proven upon presentation of the
report of sale in | 18 | | accordance with Section 15-1508. Except as otherwise provided
| 19 | | in this Article, a judgment may be entered for any balance of | 20 | | money that
may be found due to the plaintiff, over and above | 21 | | the proceeds of the sale
or sales, and enforcement may be had | 22 | | for the collection of such balance,
the same as when the | 23 | | judgment is solely for the payment of money. Such
judgment may | 24 | | be entered, or enforcement had,
only in cases where personal | 25 | | service has been had upon the
persons personally liable for the | 26 | | mortgage indebtedness, unless they have
entered their |
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| 1 | | appearance in the foreclosure action. | 2 | | (f) Satisfaction. Upon confirmation of the sale, the
| 3 | | judgment stands satisfied to the extent of the sale price less | 4 | | expenses and
costs. If the order confirming the sale includes a | 5 | | deficiency judgment, the
judgment shall become a lien in the | 6 | | manner of any other
judgment for the payment of money. | 7 | | (g) The order confirming the sale shall include, | 8 | | notwithstanding any
previous orders awarding possession during | 9 | | the pendency of the foreclosure, an
award to the purchaser of | 10 | | possession of the mortgaged real estate, as of the
date 30 days | 11 | | after the entry of the order, against the
parties to the | 12 | | foreclosure whose interests have been terminated. | 13 | | An order of possession authorizing the removal of a person | 14 | | from possession
of the mortgaged real estate shall be entered | 15 | | and enforced only against those
persons personally
named as | 16 | | individuals in the complaint or the petition under subsection | 17 | | (h)
of Section 15-1701 . No order of possession issued under | 18 | | this Section shall be entered against a lessee with a bona fide | 19 | | lease of a dwelling unit in residential real estate in | 20 | | foreclosure, whether or not the lessee has been made a party in | 21 | | the foreclosure. An and in the order of possession and shall
| 22 | | not be entered and enforced against any person who is only | 23 | | generically
described as an
unknown owner or nonrecord claimant | 24 | | or by another generic designation in the
complaint. | 25 | | Notwithstanding the preceding paragraph, the failure to | 26 | | personally
name,
include, or seek an award of
possession of the |
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| 1 | | mortgaged real estate against a person in the
confirmation | 2 | | order shall not abrogate any right that the purchaser may have | 3 | | to
possession of the mortgaged real estate and to maintain a | 4 | | proceeding against
that person for
possession under Article IX | 5 | | 9 of this Code or , if applicable, under subsection (h) of | 6 | | Section 15-1701;
and possession against a person
who (1) has | 7 | | not been personally named as a party to the
foreclosure and (2) | 8 | | has not been provided an opportunity to be heard in the
| 9 | | foreclosure proceeding may be sought only by maintaining a
| 10 | | proceeding under Article IX 9 of this
Code or , if applicable, | 11 | | under subsection (h) of Section 15-1701. | 12 | | (h) With respect to mortgaged real estate containing 5 or | 13 | | more dwelling units, the order confirming the sale shall also | 14 | | provide that (i) the mortgagor shall transfer to the purchaser | 15 | | the security deposits, if any, that the mortgagor received to | 16 | | secure payment of rent or to compensate for damage to the | 17 | | mortgaged real estate from any current occupant of a dwelling | 18 | | unit of the mortgaged real estate, as well as any statutory | 19 | | interest that has not been paid to the occupant, and (ii) the | 20 | | mortgagor shall provide an accounting of the security deposits | 21 | | that are transferred, including the name and address of each | 22 | | occupant for whom the mortgagor holds the deposit and the | 23 | | amount of the deposit and any statutory interest. | 24 | | (Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10; | 25 | | 96-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff. | 26 | | 8-26-11; 97-1159, eff. 1-29-13.) |
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| 1 | | (Text of Section after amendment by P.A. 97-1164 ) | 2 | | Sec. 15-1508. Report of Sale and Confirmation of Sale. | 3 | | (a) Report. The person conducting the sale shall promptly | 4 | | make a report to
the court, which report shall include a copy | 5 | | of all receipts and, if any,
certificate of sale. | 6 | | (b) Hearing. Upon motion and notice in accordance with | 7 | | court rules
applicable to motions generally, which motion shall | 8 | | not be made prior to
sale, the court shall conduct a hearing to
| 9 | | confirm the sale. Unless the court finds that (i) a notice | 10 | | required in
accordance with subsection (c) of Section 15-1507 | 11 | | was not given, (ii) the
terms of sale were unconscionable, | 12 | | (iii) the sale was conducted
fraudulently, or (iv) justice was | 13 | | otherwise not done, the court shall
then enter an order | 14 | | confirming the sale. The confirmation order shall include a | 15 | | name, address, and telephone number of the holder of the | 16 | | certificate of sale or deed issued pursuant to that certificate | 17 | | or, if no certificate or deed was issued, the purchaser, whom a | 18 | | municipality or county may contact with concerns about the real | 19 | | estate. The confirmation order may
also: | 20 | | (1) approve the mortgagee's fees and costs arising | 21 | | between the entry of
the judgment of foreclosure and the | 22 | | confirmation hearing, those costs and
fees to be allowable | 23 | | to the same extent as provided in the note and mortgage
and | 24 | | in Section 15-1504; | 25 | | (2) provide for a personal judgment against any party |
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| 1 | | for a deficiency;
and | 2 | | (3) determine the priority of the judgments of parties | 3 | | who deferred proving
the priority pursuant to subsection | 4 | | (h) of Section 15-1506, but
the court shall not
defer | 5 | | confirming the sale pending the determination of such | 6 | | priority. | 7 | | (b-3) Hearing to confirm sale of abandoned residential | 8 | | property. Upon motion and notice by first-class mail to the | 9 | | last known address of the mortgagor, which motion shall be made | 10 | | prior to the sale and heard by the court at the earliest | 11 | | practicable time after conclusion of the sale, and upon the | 12 | | posting at the property address of the notice required by | 13 | | paragraph (2) of subsection (l) of Section 15-1505.8, the court | 14 | | shall enter an order confirming the sale of the abandoned | 15 | | residential property, unless the court finds that a reason set | 16 | | forth in items (i) through (iv) of subsection (b) of this | 17 | | Section exists for not approving the sale, or an order is | 18 | | entered pursuant to subsection (h) of Section 15-1505.8. The | 19 | | confirmation order also may address the matters identified in | 20 | | items (1) through (3) of subsection (b) of this Section. The | 21 | | notice required under subsection (b-5) of this Section shall | 22 | | not be required. | 23 | | (b-5) Notice with respect to residential real estate. With | 24 | | respect to residential real estate, the notice required under | 25 | | subsection (b) of this Section shall be sent to the mortgagor | 26 | | even if the mortgagor has previously been held in default. In |
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| 1 | | the event the mortgagor has filed an appearance, the notice | 2 | | shall be sent to the address indicated on the appearance. In | 3 | | all other cases, the notice shall be sent to the mortgagor at | 4 | | the common address of the foreclosed property. The notice shall | 5 | | be sent by first class mail. Unless the right to possession has | 6 | | been previously terminated by the court, the notice shall | 7 | | include the following language in 12-point boldface | 8 | | capitalized type: | 9 | | IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO | 10 | | REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | 11 | | POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | 12 | | ILLINOIS MORTGAGE FORECLOSURE LAW. | 13 | | (b-10) Notice of confirmation order sent to municipality or | 14 | | county. A copy of the confirmation order required under | 15 | | subsection (b) shall be sent to the municipality in which the | 16 | | foreclosed property is located, or to the county within the | 17 | | boundary of which the foreclosed property is located if the | 18 | | foreclosed property is located in an unincorporated territory. | 19 | | A municipality or county must clearly publish on its website a | 20 | | single address to which a copy of the order shall be sent. If a | 21 | | municipality or county does not maintain a website, then the | 22 | | municipality or county must publicly post in its main office a | 23 | | single address to which a copy of the order shall be sent. In | 24 | | the event that a municipality or county has not complied with | 25 | | the publication requirement in this subsection (b-10), then a | 26 | | copy of the order shall be sent by first class mail, postage |
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| 1 | | prepaid, to the chairperson of the county board or county clerk | 2 | | in the case of a county, to the mayor or city clerk in the case | 3 | | of a city, to the president of the board of trustees or village | 4 | | clerk in the case of a village, or to the president or town | 5 | | clerk in the case of a town. | 6 | | (b-15) Notice of confirmation order sent to known insurers. | 7 | | With respect to residential real estate, the party filing the | 8 | | complaint shall send a copy of the confirmation order required | 9 | | under subsection (b) by first class mail, postage prepaid, to | 10 | | the last known property insurer of the foreclosed property. | 11 | | Failure to send or receive a copy of the order shall not impair | 12 | | or abrogate in any way the rights of the mortgagee or purchaser | 13 | | or affect the status of the foreclosure proceedings. | 14 | | (c) Failure to Give Notice. If any sale is held without | 15 | | compliance with
subsection (c) of Section 15-1507 of this | 16 | | Article, any party entitled to
the notice provided for in | 17 | | paragraph (3) of that subsection
(c) who was not so notified | 18 | | may, by motion supported by affidavit
made prior to | 19 | | confirmation of such sale, ask the court which entered the
| 20 | | judgment to set aside the sale. Any such party shall guarantee | 21 | | or secure by bond a bid equal to the successful bid at the | 22 | | prior sale, unless the party seeking to set aside the sale is | 23 | | the mortgagor, the real estate sold at the sale is residential | 24 | | real estate, and the mortgagor occupies the residential real | 25 | | estate at the time the motion is filed. In that event, no | 26 | | guarantee or bond shall be required of the mortgagor. Any
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| 1 | | subsequent sale is subject to the same notice requirement as | 2 | | the original sale. | 3 | | (d) Validity of Sale. Except as provided in subsection (c) | 4 | | of Section
15-1508, no sale under this Article shall be held | 5 | | invalid or be set aside
because of any defect in the notice | 6 | | thereof or in the publication of the
same, or in the | 7 | | proceedings of the officer conducting the sale, except upon
| 8 | | good cause shown in a hearing pursuant to subsection (b) of | 9 | | Section
15-1508. At any time after a sale has occurred, any | 10 | | party entitled to
notice under paragraph (3) of subsection (c) | 11 | | of Section 15-1507 may recover
from the mortgagee any damages | 12 | | caused by the mortgagee's failure to comply
with such paragraph | 13 | | (3). Any party who recovers damages in a judicial
proceeding | 14 | | brought under this subsection may also recover from the
| 15 | | mortgagee the reasonable expenses of litigation, including | 16 | | reasonable attorney's fees. | 17 | | (d-5) Making Home Affordable Program. The court that | 18 | | entered the judgment shall set aside a sale held pursuant to | 19 | | Section 15-1507, upon motion of the mortgagor at any time prior | 20 | | to the confirmation of the sale, if the mortgagor proves by a | 21 | | preponderance of the evidence that (i) the mortgagor has | 22 | | applied for assistance under the Making Home Affordable Program | 23 | | established by the United States Department of the Treasury | 24 | | pursuant to the Emergency Economic Stabilization Act of 2008, | 25 | | as amended by the American Recovery and Reinvestment Act of | 26 | | 2009, and (ii) the mortgaged real estate was sold in material |
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| 1 | | violation of the program's requirements for proceeding to a | 2 | | judicial sale. The provisions of this subsection (d-5), except | 3 | | for this sentence, shall become inoperative on January 1, 2014 | 4 | | for all actions filed under this Article after December 31, | 5 | | 2013, in which the mortgagor did not apply for assistance under | 6 | | the Making Home Affordable Program on or before December 31, | 7 | | 2013. | 8 | | (e) Deficiency Judgment. In any order confirming a sale | 9 | | pursuant to the
judgment of foreclosure, the court shall also | 10 | | enter a personal judgment
for deficiency against any party (i) | 11 | | if otherwise authorized and (ii) to
the extent requested in the | 12 | | complaint and proven upon presentation of the
report of sale in | 13 | | accordance with Section 15-1508. Except as otherwise provided
| 14 | | in this Article, a judgment may be entered for any balance of | 15 | | money that
may be found due to the plaintiff, over and above | 16 | | the proceeds of the sale
or sales, and enforcement may be had | 17 | | for the collection of such balance,
the same as when the | 18 | | judgment is solely for the payment of money. Such
judgment may | 19 | | be entered, or enforcement had,
only in cases where personal | 20 | | service has been had upon the
persons personally liable for the | 21 | | mortgage indebtedness, unless they have
entered their | 22 | | appearance in the foreclosure action. | 23 | | (f) Satisfaction. Upon confirmation of the sale, the
| 24 | | judgment stands satisfied to the extent of the sale price less | 25 | | expenses and
costs. If the order confirming the sale includes a | 26 | | deficiency judgment, the
judgment shall become a lien in the |
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| 1 | | manner of any other
judgment for the payment of money. | 2 | | (g) The order confirming the sale shall include, | 3 | | notwithstanding any
previous orders awarding possession during | 4 | | the pendency of the foreclosure, an
award to the purchaser of | 5 | | possession of the mortgaged real estate, as of the
date 30 days | 6 | | after the entry of the order, against the
parties to the | 7 | | foreclosure whose interests have been terminated. | 8 | | An order of possession authorizing the removal of a person | 9 | | from possession
of the mortgaged real estate shall be entered | 10 | | and enforced only against those
persons personally
named as | 11 | | individuals in the complaint or the petition under subsection | 12 | | (h)
of Section 15-1701 . No order of possession issued under | 13 | | this Section shall be entered against a lessee with a bona fide | 14 | | lease of a dwelling unit in residential real estate in | 15 | | foreclosure, whether or not the lessee has been made a party in | 16 | | the foreclosure. An and in the order of possession and shall
| 17 | | not be entered and enforced against any person who is only | 18 | | generically
described as an
unknown owner or nonrecord claimant | 19 | | or by another generic designation in the
complaint. | 20 | | Notwithstanding the preceding paragraph, the failure to | 21 | | personally
name,
include, or seek an award of
possession of the | 22 | | mortgaged real estate against a person in the
confirmation | 23 | | order shall not abrogate any right that the purchaser may have | 24 | | to
possession of the mortgaged real estate and to maintain a | 25 | | proceeding against
that person for
possession under Article IX | 26 | | 9 of this Code or , if applicable, under subsection (h) of |
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| 1 | | Section 15-1701;
and possession against a person
who (1) has | 2 | | not been personally named as a party to the
foreclosure and (2) | 3 | | has not been provided an opportunity to be heard in the
| 4 | | foreclosure proceeding may be sought only by maintaining a
| 5 | | proceeding under Article IX 9 of this
Code or , if applicable, | 6 | | under subsection (h) of Section 15-1701. | 7 | | (h) With respect to mortgaged real estate containing 5 or | 8 | | more dwelling units, the order confirming the sale shall also | 9 | | provide that (i) the mortgagor shall transfer to the purchaser | 10 | | the security deposits, if any, that the mortgagor received to | 11 | | secure payment of rent or to compensate for damage to the | 12 | | mortgaged real estate from any current occupant of a dwelling | 13 | | unit of the mortgaged real estate, as well as any statutory | 14 | | interest that has not been paid to the occupant, and (ii) the | 15 | | mortgagor shall provide an accounting of the security deposits | 16 | | that are transferred, including the name and address of each | 17 | | occupant for whom the mortgagor holds the deposit and the | 18 | | amount of the deposit and any statutory interest. | 19 | | (Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10; | 20 | | 96-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff. | 21 | | 8-26-11; 97-1159, eff. 1-29-13; 97-1164, eff. 6-1-13; revised | 22 | | 2-22-13.) | 23 | | (735 ILCS 5/15-1508.5) | 24 | | Sec. 15-1508.5. Notice by holder or purchaser to known | 25 | | occupants of dwelling units of mortgaged real estate. |
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| 1 | | (a) The holder of the certificate of sale or deed issued | 2 | | pursuant to that certificate or, if no certificate or deed was | 3 | | issued, the purchaser, shall: | 4 | | (1) following the judicial sale under Section 15-1507, | 5 | | but no later than 21 days after the confirmation of sale | 6 | | under Section 15-1508, make a good faith effort to | 7 | | ascertain the identities and addresses of all occupants of | 8 | | dwelling units of the mortgaged real estate; and | 9 | | (2) following the order confirming sale under Section | 10 | | 15-1508, but no later than 21 days after the order | 11 | | confirming sale, notify all known occupants of dwelling | 12 | | units of the mortgaged real estate that the holder or | 13 | | purchaser has acquired the mortgaged real estate. The | 14 | | notice shall be in writing and shall: | 15 | | (i) identify the occupant being served by the name | 16 | | known to the holder or purchaser; | 17 | | (ii) inform the occupant that the mortgaged real | 18 | | estate at which the dwelling unit is located is the | 19 | | subject of a foreclosure and that control of the | 20 | | mortgaged real estate has changed; | 21 | | (iii) provide the name, address, and telephone | 22 | | number of an individual or entity whom the occupants | 23 | | may contact with concerns about the mortgaged real | 24 | | estate or to request repairs of that property; | 25 | | (iv) include the following language, or language | 26 | | that is substantially similar:
"This is NOT a notice to |
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| 1 | | vacate the premises. You may wish to contact a lawyer | 2 | | or your local legal aid or housing counseling agency to | 3 | | discuss any rights that you may have."; and | 4 | | (v) include the name of the case, the case number, | 5 | | and the court where the order confirming the sale has | 6 | | been entered ; and . | 7 | | (vi) provide instructions on the method of payment | 8 | | of future rent, if applicable. | 9 | | (b) The written notice required by subsection (a) of this | 10 | | Section shall be served by delivering a copy thereof to the | 11 | | known occupant, or by leaving the same with some person of the | 12 | | age of 13 years or upwards who is residing on or in possession | 13 | | of the premises, or by sending a copy of the notice to the | 14 | | known occupant by first-class mail, addressed to the occupant | 15 | | by the name known to the holder or purchaser. | 16 | | (c) In the event that the holder or purchaser ascertains | 17 | | the identity and address of an occupant of a dwelling unit of | 18 | | the mortgaged real estate more than 21 days after the | 19 | | confirmation of sale under Section 15-1508, the holder or | 20 | | purchaser shall provide the notice required by subparagraph (2) | 21 | | of subsection (a) within 7 days of ascertaining the identity | 22 | | and address of the occupant. | 23 | | (d)(i) A holder or purchaser who fails to comply with | 24 | | subsections (a), (b), and (c) may not collect any rent due and | 25 | | owing from a known occupant, or terminate a known occupant's | 26 | | tenancy for non-payment of such rent, until the holder or |
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| 1 | | purchaser has served the notice described in paragraph (2) of | 2 | | subsection (a) of this Section upon the known occupant. After | 3 | | providing such notice, the holder or purchaser may collect any | 4 | | and all rent otherwise due and owing the holder or purchaser | 5 | | from the known occupant and may terminate the known occupant's | 6 | | tenancy for non-payment of such rent if the holder or purchaser | 7 | | otherwise has such right to terminate. | 8 | | (ii) An occupant who previously paid rent for the current | 9 | | rental period to the mortgagor, or other entity with the | 10 | | authority to operate, manage, and conserve the mortgaged real | 11 | | estate at the time of payment, shall not be held liable for | 12 | | that rent by the holder or purchaser, and the occupant's | 13 | | tenancy shall not be terminated for non-payment of rent for | 14 | | that rental period. | 15 | | (e) Within 21 days of the confirmation of sale under | 16 | | Section 15-1508, the holder or purchaser shall post a written | 17 | | notice on the primary entrance of each dwelling unit subject to | 18 | | the foreclosure action. This notice shall: | 19 | | (i) inform occupant that the dwelling unit is the | 20 | | subject of a foreclosure action and that control of the | 21 | | mortgaged real estate has changed; | 22 | | (ii) include the following language: "This is NOT a | 23 | | notice to vacate the premises."; and | 24 | | (iii) provide the name, address, and telephone number | 25 | | of the individual or entity whom occupants may contact with | 26 | | concerns about the mortgaged real estate or to request |
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| 1 | | repairs of the property ; and . | 2 | | (iv) provide instructions on the method of payment of | 3 | | future rent, if applicable. | 4 | | (f)(i) The provisions of subsection (d) of this Section | 5 | | shall be the exclusive remedy for the failure of a holder or | 6 | | purchaser to provide notice to a known occupant under this | 7 | | Section. | 8 | | (ii) This Section shall not abrogate any right that a | 9 | | holder or purchaser may have to possession of the mortgaged | 10 | | real estate and to maintain a proceeding against an occupant of | 11 | | a dwelling unit for possession under Article IX 9 of this Code | 12 | | or subsection (h) of Section 15-1701. | 13 | | (iii) In the event that the holder or purchaser is a | 14 | | mortgagee in possession of the mortgaged real estate pursuant | 15 | | to Section 15-1703 at the time of the confirmation of sale and | 16 | | has complied with requirements of subsection (a-5) of Section | 17 | | 15-1703, the holder or purchaser is excused from the | 18 | | requirements of subsections (a) and (e) of this Section. | 19 | | (iv) A holder or purchaser is not required to provide the | 20 | | notice required by this Section to a mortgagor or party against | 21 | | whom an order of possession has been entered authorizing the | 22 | | removal of the mortgagor or party pursuant to subsection (g) of | 23 | | Section 15-1508.
| 24 | | (Source: P.A. 96-111, eff. 10-29-09.)
| 25 | | (735 ILCS 5/15-1701) (from Ch. 110, par. 15-1701)
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| 1 | | Sec. 15-1701. Right to possession.
| 2 | | (a) General. The provisions of
this Article shall govern | 3 | | the right to possession of the mortgaged real
estate during | 4 | | foreclosure. Possession under this Article includes physical
| 5 | | possession of the mortgaged real estate to the same extent to | 6 | | which the
mortgagor, absent the foreclosure, would have been | 7 | | entitled to physical
possession. For the purposes of Part 17, | 8 | | real estate is residential real estate
only if it is | 9 | | residential real estate at the time the foreclosure is | 10 | | commenced.
| 11 | | (b) Pre-Judgment. Prior to the entry of a judgment of | 12 | | foreclosure:
| 13 | | (1) In the case of residential real estate, the | 14 | | mortgagor shall be
entitled to possession of the real | 15 | | estate except if (i) the mortgagee shall
object and show | 16 | | good cause, (ii) the mortgagee is so authorized by the | 17 | | terms of
the mortgage or other written instrument, and | 18 | | (iii) the court is satisfied that
there is a reasonable | 19 | | probability that the mortgagee will prevail on a final
| 20 | | hearing of the cause, the court shall upon request place | 21 | | the mortgagee in
possession. If the residential real estate | 22 | | consists of more than one dwelling
unit, then for the | 23 | | purpose of this Part residential real estate shall mean | 24 | | only
that dwelling unit or units occupied by persons | 25 | | described in clauses (i), (ii)
and (iii) of Section | 26 | | 15-1219.
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| 1 | | (2) In all other cases, if (i) the mortgagee is so | 2 | | authorized by the
terms of the mortgage or other written | 3 | | instrument, and (ii) the court is
satisfied that there is a | 4 | | reasonable probability that the mortgagee will
prevail on a | 5 | | final hearing of the cause, the mortgagee shall
upon | 6 | | request be placed in possession of the real estate, except | 7 | | that if the
mortgagor shall object and show good cause, the | 8 | | court shall allow the
mortgagor to remain in possession.
| 9 | | (c) Judgment Through 30 Days After Sale Confirmation. After | 10 | | the entry
of a judgment of foreclosure and through the 30th day | 11 | | after a foreclosure
sale is confirmed:
| 12 | | (1) Subsection (b) of Section 15-1701 shall be | 13 | | applicable, regardless of
the provisions of the mortgage or | 14 | | other instrument, except that after a
sale pursuant to the | 15 | | judgment the holder of the certificate of sale
(or, if | 16 | | none, the purchaser at the sale) shall have the mortgagee's | 17 | | right to be
placed in possession, with all rights and | 18 | | duties of a mortgagee in possession
under this Article.
| 19 | | (2) Notwithstanding paragraph (1) of subsection (b) | 20 | | and paragraph (1) of
subsection (c) of Section 15-1701, | 21 | | upon request of the mortgagee, a mortgagor
of residential | 22 | | real estate shall not be allowed to remain in possession | 23 | | between
the expiration of the redemption period and through | 24 | | the 30th day after sale
confirmation unless (i) the | 25 | | mortgagor pays to the mortgagee or such holder or
| 26 | | purchaser, whichever is applicable, monthly the lesser of |
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| 1 | | the interest due
under the mortgage calculated at the | 2 | | mortgage rate of interest applicable as if
no default had | 3 | | occurred or the fair rental value of the real estate, or | 4 | | (ii)
the mortgagor otherwise shows good cause. Any amounts | 5 | | paid by the mortgagor
pursuant to this subsection shall be | 6 | | credited against the amounts due from the
mortgagor.
| 7 | | (d) After 30 Days After Sale Confirmation. The holder of
| 8 | | the certificate of sale or deed issued pursuant to that | 9 | | certificate or, if
no certificate or deed was issued, the | 10 | | purchaser, except to the extent the
holder or purchaser may | 11 | | consent otherwise, shall be entitled to possession of
the | 12 | | mortgaged real estate, as of the date 30 days after the order | 13 | | confirming
the sale is entered, against those parties to the | 14 | | foreclosure whose interests
the court has ordered terminated, | 15 | | without further notice to any party, further
order of the | 16 | | court, or resort to proceedings under any other statute other | 17 | | than
this Article.
This right to possession shall be limited by | 18 | | the provisions
governing entering and enforcing orders of | 19 | | possession under subsection (g) of
Section
15-1508.
If the | 20 | | holder or purchaser determines that there are occupants
of the | 21 | | mortgaged real estate who have not been made parties to the | 22 | | foreclosure
and had their interests terminated therein, the | 23 | | holder or purchaser may bring a
proceeding under subsection (h) | 24 | | of this Section , if applicable, or under Article IX 9 of this | 25 | | Code
to terminate the rights of possession of any such | 26 | | occupants. The holder or
purchaser shall not be entitled to |
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| 1 | | proceed against any such occupant under
Article IX 9 of this | 2 | | Code until after 30 days after the order confirming the sale
is | 3 | | entered.
| 4 | | (e) Termination of Leases. A lease of all or any part of | 5 | | the mortgaged
real estate shall not be terminated automatically | 6 | | solely by virtue of the entry
into possession by (i) a | 7 | | mortgagee or receiver prior to the entry of an order
confirming | 8 | | the sale, (ii) the holder of the certificate of sale, (iii) the
| 9 | | holder of the deed issued pursuant to that certificate, or (iv) | 10 | | if no
certificate or deed was issued, the purchaser at the | 11 | | sale.
| 12 | | (f) Other Statutes; Instruments. The provisions of this | 13 | | Article
providing for possession of mortgaged real estate shall | 14 | | supersede any other
inconsistent statutory provisions. In | 15 | | particular, and without limitation,
whenever a receiver is | 16 | | sought to be appointed in any action in which a
foreclosure is | 17 | | also pending, a receiver shall be appointed only in
accordance | 18 | | with this Article. Except as may be authorized by this Article,
| 19 | | no mortgage or other instrument may modify or supersede the | 20 | | provisions of this
Article.
| 21 | | (g) Certain Leases. Leases of the mortgaged real estate | 22 | | entered into by
a mortgagee in possession or a receiver and | 23 | | approved by the court in a
foreclosure shall be binding on all | 24 | | parties, including the mortgagor after
redemption, the | 25 | | purchaser at a sale pursuant to a judgment of foreclosure
and | 26 | | any person acquiring an interest in the mortgaged real estate |
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| 1 | | after
entry of a judgment of foreclosure in accordance with | 2 | | Sections 15-1402 and
15-1403.
| 3 | | (h) Proceedings Against Certain Occupants.
| 4 | | (1) The mortgagee-in-possession of the mortgaged real | 5 | | estate under Section
15-1703, a receiver appointed under | 6 | | Section 15-1704, a holder of the
certificate of sale or | 7 | | deed, or the purchaser may, at any time during the
pendency | 8 | | of the foreclosure and up to 90 days after the date of the | 9 | | order
confirming the sale,
file a supplemental petition for | 10 | | possession against a person not personally
named as a party
| 11 | | to the foreclosure. This subsection (h) does not apply to | 12 | | any lessee with a bona fide lease of a dwelling unit in | 13 | | residential real estate in foreclosure. | 14 | | (2) The supplemental petition for possession shall | 15 | | name each such
occupant against whom possession is sought | 16 | | and state the facts upon which the
claim for relief is | 17 | | premised.
| 18 | | (3) (2) The petitioner shall serve upon each named | 19 | | occupant the petition,
a notice of hearing on the petition, | 20 | | and, if any, a copy of the certificate of
sale or deed. The | 21 | | proceeding for the termination of such occupant's | 22 | | possessory
interest, including service of the notice of the | 23 | | hearing and the petition,
shall in all respects comport | 24 | | with the requirements of Article IX 9 of this Code,
except | 25 | | as otherwise specified in this Section. The hearing shall | 26 | | be no less
than 21 days from the date of service of the |
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| 1 | | notice.
| 2 | | (4) (3) The supplemental petition shall be heard as | 3 | | part of the foreclosure
proceeding and without the payment | 4 | | of additional filing fees. An order for
possession obtained | 5 | | under this Section shall name each occupant whose interest
| 6 | | has been terminated, shall recite that it is only effective | 7 | | as to the occupant
so named and those holding under them, | 8 | | and shall be enforceable for no more
than 120 days after | 9 | | its entry, except that the 120-day period may be extended | 10 | | to
the extent and in the manner provided in Section 9-117 | 11 | | of Article IX 9 and except as provided in item (5) (4) of | 12 | | this subsection (h). | 13 | | (5) (4) In a case of foreclosure where the occupant is | 14 | | current on his or her rent, or where timely written notice | 15 | | of to whom and where the rent is to be paid has not been | 16 | | provided to the occupant, or where the occupant has made | 17 | | good-faith efforts to make rental payments in order to keep | 18 | | current, any order of possession must allow the occupant to | 19 | | retain possession of the property covered in his or her | 20 | | rental agreement (i) for 120 days following the notice of | 21 | | the hearing on the supplemental petition that has been | 22 | | properly served upon the occupant, or (ii) through the | 23 | | duration of his or her lease, whichever is shorter, | 24 | | provided that if the duration of his or her lease is less | 25 | | than 30 days from the date of the order, the order shall | 26 | | allow the occupant to retain possession for 30 days from |
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| 1 | | the date of the order. A mortgagee in possession, receiver, | 2 | | holder of a certificate of sale or deed, or purchaser at | 3 | | the judicial sale, who asserts that the occupant is not | 4 | | current in rent, shall file an affidavit to that effect in | 5 | | the supplemental petition proceeding. If the occupant has | 6 | | been given timely written notice of to whom and where the | 7 | | rent is to be paid, this item (5) (4) shall only apply if | 8 | | the occupant continues to pay his or her rent in full | 9 | | during the 120-day period or has made good-faith efforts to | 10 | | pay the rent in full during that period.
No | 11 | | mortgagee-in-possession, receiver or holder of a | 12 | | certificate of sale or deed, or purchaser who fails to file | 13 | | a supplemental petition under this subsection during the | 14 | | pendency of a mortgage foreclosure shall file a forcible | 15 | | entry and detainer action against an occupant of the | 16 | | mortgaged real estate until 90 days after a notice of | 17 | | intent to file such action has been properly served upon | 18 | | the occupant. | 19 | | (6) (5) The court records relating to a supplemental | 20 | | petition for possession filed under this subsection (h) | 21 | | against an occupant who is entitled to notice under item | 22 | | (5) (4) of this subsection (h), or relating to a forcible | 23 | | entry and detainer action brought against an occupant who | 24 | | would have lawful possession of the premises but for the | 25 | | foreclosure of a mortgage on the property, shall be ordered | 26 | | sealed and shall not be disclosed to any person, other than |
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| 1 | | a law enforcement officer or any other representative of a | 2 | | governmental entity, except upon further order of the | 3 | | court.
| 4 | | (i) Termination of bona fide leases. The holder of the | 5 | | certificate of sale, the holder of the deed issued pursuant to | 6 | | that certificate, or, if no certificate or deed was issued, the | 7 | | purchaser at the sale shall not terminate a bona fide lease of | 8 | | a dwelling unit in residential real estate in foreclosure | 9 | | except pursuant to Article IX of this Code. | 10 | | (Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60, | 11 | | eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
| 12 | | (735 ILCS 5/15-1703) (from Ch. 110, par. 15-1703)
| 13 | | Sec. 15-1703. Mortgagee in Possession. | 14 | | (a) Powers and Duties. A mortgagee
placed in possession of | 15 | | the real estate pursuant to Section 15-1701 or Section
15-1702 | 16 | | shall have:
| 17 | | (1) such power and authority with respect to the real | 18 | | estate and other
property subject to the mortgage, | 19 | | including the right to receive the rents,
issues and | 20 | | profits thereof, as may have been conferred upon the | 21 | | mortgagee
by the terms of the mortgage or other written | 22 | | instrument authorizing the
taking of possession;
| 23 | | (2) all other rights and privileges of a mortgagee in | 24 | | possession under
law not inconsistent herewith; and
| 25 | | (3) the same powers, duties and liabilities as a |
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| 1 | | receiver appointed for
the real estate in accordance with | 2 | | this Article. If an order placing a
mortgagee in possession | 3 | | is modified, revoked or set aside, the mortgagee
shall not | 4 | | be liable for any damages to the extent such damages arise
| 5 | | solely out of the fact that the mortgagor was removed from | 6 | | possession or
that the mortgagee was placed in possession.
| 7 | | (a-5) Notice to occupants. | 8 | | (1) Following the order placing the mortgagee in | 9 | | possession of the mortgaged real estate, but no later than | 10 | | 21 days after the entry of such order, the mortgagee in | 11 | | possession shall make a good faith effort to ascertain the | 12 | | identities and addresses of all occupants of dwelling units | 13 | | of the mortgaged real estate. | 14 | | (2) Following the order placing the mortgagee in | 15 | | possession of the mortgaged real estate, but no later than | 16 | | 21 days after the entry of such order, the mortgagee in | 17 | | possession shall notify all known occupants of dwelling | 18 | | units of the mortgaged real estate that the mortgagee has | 19 | | taken possession of the mortgaged real estate. The notice | 20 | | shall be in writing and shall: | 21 | | (i) identify the occupant being served by the name | 22 | | known to the mortgagee in possession; | 23 | | (ii) inform the occupant that the mortgaged real | 24 | | estate at which the dwelling unit is located is the | 25 | | subject of a foreclosure action and that control of the | 26 | | mortgaged real estate has changed; |
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| 1 | | (iii) provide the name, address, and telephone | 2 | | number of the individual or entity whom occupants may | 3 | | contact with concerns about the mortgaged real estate | 4 | | or to request repairs of that property; | 5 | | (iv) include the following language, or language | 6 | | that is substantially similar: "This is NOT a notice to | 7 | | vacate the premises. You may wish to contact a lawyer | 8 | | or your local legal aid or housing counseling agency to | 9 | | discuss any rights that you may have."; and | 10 | | (v) include the name of the case, the case number, | 11 | | and the court where the foreclosure action is pending ; | 12 | | and . | 13 | | (vi) provide instructions on the method of payment | 14 | | of future rent, if applicable. | 15 | | (3) The written notice required by item (2) of this | 16 | | subsection (a-5) shall be served by delivering a copy | 17 | | thereof to the known occupant, or by leaving the same with | 18 | | some person of the age of 13 years or upwards, who is | 19 | | residing on or in possession of the premises; or by sending | 20 | | a copy of the notice to the known occupant by first-class | 21 | | mail, addressed to the occupant by the name known to the | 22 | | mortgagee in possession. | 23 | | (4) In the event that a mortgagee in possession | 24 | | ascertains the identity and address of an occupant of a | 25 | | dwelling unit of the mortgaged real estate more than 21 | 26 | | days after being placed in possession of the mortgaged real |
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| 1 | | estate pursuant to Section 15-1703, the mortgagee in | 2 | | possession shall provide the notice required by item (2) of | 3 | | this subsection (a-5) within 7 days of ascertaining the | 4 | | identity and address of the occupant. | 5 | | (5)(i) A mortgagee in possession who fails to comply | 6 | | with items (1), (2), (3), and (4) of this subsection (a-5) | 7 | | may not collect any rent due and owing from a known | 8 | | occupant, or terminate a known occupant's tenancy for | 9 | | non-payment of such rent, until the mortgagee in possession | 10 | | has served the notice described in item (2) of this | 11 | | subsection (a-5) upon the known occupant. After providing | 12 | | such notice, the mortgagee in possession may collect any | 13 | | and all rent otherwise due and owing the mortgagee in | 14 | | possession from the known occupant and may terminate the | 15 | | known occupant's tenancy for non-payment of such rent if | 16 | | the mortgagee in possession otherwise has such right to | 17 | | terminate. | 18 | | (ii) An occupant who previously paid rent for the | 19 | | current rental period to the mortgagor, or other entity | 20 | | with the authority to operate, manage, and conserve the | 21 | | mortgaged real estate at the time of payment, shall not be | 22 | | held liable for that rent by the mortgagee in possession, | 23 | | and the occupant's tenancy shall not be terminated for | 24 | | non-payment of rent for that rental period. | 25 | | (6) Within 21 days of the order placing the mortgagee | 26 | | in possession of the mortgaged real estate, the mortgagee |
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| 1 | | in possession shall post a written notice on the primary | 2 | | entrance of each dwelling unit subject to the foreclosure | 3 | | action that informs the occupants that the mortgagee in | 4 | | possession is now operating and managing the mortgaged real | 5 | | estate. This notice shall: | 6 | | (i) inform occupant that the dwelling unit is the | 7 | | subject of a foreclosure action and that control of the | 8 | | mortgaged real estate has changed; | 9 | | (ii) include the following language: "This is NOT a | 10 | | notice to vacate the premises."; and | 11 | | (iii) provide the name, address, and telephone | 12 | | number of the individual or entity whom occupants may | 13 | | contact with concerns about the mortgaged real estate | 14 | | or to request repairs of the property ; and . | 15 | | (iv) provide instructions on the method of payment | 16 | | of future rent, if applicable. | 17 | | (7)(i) The provisions of item (5) of this subsection | 18 | | (a-5) shall be the exclusive remedy for the failure of a | 19 | | mortgagee in possession to provide notice to a known | 20 | | occupant under this Section. | 21 | | (ii) This Section shall not abrogate any right that a | 22 | | mortgagee in possession may have to possession of the | 23 | | mortgaged real estate and to maintain a proceeding against | 24 | | an occupant of a dwelling unit for possession under Article | 25 | | IX 9 of this Code or subsection (h) of Section 15-1701. | 26 | | (b) Fees and Expenses. A mortgagee in possession shall not |
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| 1 | | be entitled
to any fees for so acting, but shall be entitled to | 2 | | reimbursement for
reasonable costs, expenses and third party | 3 | | management fees incurred in
connection with such possession.
| 4 | | (Source: P.A. 96-111, eff. 10-29-09.)
| 5 | | (735 ILCS 5/15-1704) (from Ch. 110, par. 15-1704)
| 6 | | Sec. 15-1704. Receivers. | 7 | | (a) Receiver. Notwithstanding the
provisions of | 8 | | subsections (b), (c) and (d) of Section 15-1701, and except
as | 9 | | provided in Section 15-1702, upon request of any party and a | 10 | | showing of
good cause, the court shall appoint a receiver for | 11 | | the mortgaged real estate.
| 12 | | (b) Powers. A receiver appointed pursuant to this Article | 13 | | shall have
possession of the mortgaged real estate and other | 14 | | property subject to the
mortgage during the foreclosure, shall | 15 | | have full power and authority to
operate, manage and conserve | 16 | | such property, and shall have all the usual
powers of receivers | 17 | | in like cases. Without limiting the foregoing, a
receiver shall | 18 | | have the power and authority to:
| 19 | | (1) secure tenants and execute leases for the real | 20 | | estate,
the duration and terms of which are
reasonable and | 21 | | customary for the type of use involved, and such leases
| 22 | | shall have the same priority as if made by the owner of the | 23 | | real estate;
but, unless approved by the Court, the | 24 | | receiver shall not
execute oil, gas or other mineral | 25 | | leases, or (even if otherwise allowed by
law) leases |
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| 1 | | extending beyond the time of the receiver's possession;
| 2 | | provided, however, with respect to residential real estate | 3 | | leased by the
receiver, nothing in this Section shall | 4 | | affect the legal rights of any lessee
with respect to the | 5 | | safety and habitability of the residential real estate;
| 6 | | (2) collect the rents, issues and profits from the | 7 | | mortgaged real estate;
| 8 | | (3) insure the mortgaged real estate against loss by | 9 | | fire or other casualty;
| 10 | | (4) employ counsel, custodians, janitors and other | 11 | | help; and
| 12 | | (5) pay taxes which may have been or may be levied | 13 | | against the mortgaged real estate.
| 14 | | (c) Duties. A receiver appointed pursuant to this Article | 15 | | must manage
the mortgaged real estate as would a prudent | 16 | | person, taking into account
the effect of the receiver's | 17 | | management on the interest of the mortgagor.
A receiver may, | 18 | | without an order of the court, delegate managerial
functions to | 19 | | a person in the business of managing real estate of the kind
| 20 | | involved who is financially responsible, not related to the | 21 | | mortgagee or
receiver and prudently selected. However, the | 22 | | receiver
shall remain responsible to the mortgagor or other
| 23 | | persons for the acts or omissions of such management agent. | 24 | | When fees are
paid to such a management agent, the receiver's | 25 | | fees may be adjusted to the
extent the court deems appropriate. | 26 | | In managing the mortgaged real estate
and other property |
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| 1 | | subject to the mortgage,
a receiver or receiver's delegate, to | 2 | | the extent the receiver receives
sufficient receipts from the | 3 | | mortgaged real estate, such other property or
other sources, | 4 | | except to the extent ordered otherwise by the court:
| 5 | | (1) shall maintain the existing casualty and liability | 6 | | insurance
required in accordance with the mortgage or | 7 | | applicable to the real estate
and other property subject to | 8 | | the mortgage at the time the receiver took possession;
| 9 | | (2) shall use reasonable efforts to maintain the real | 10 | | estate and other
property subject to the mortgage in at | 11 | | least as good condition as existed at
the time the receiver | 12 | | took possession, excepting reasonable wear and tear
and | 13 | | damage by any casualty;
| 14 | | (2.5) shall accept all rental payments from an occupant | 15 | | of the mortgaged property, and any payments from a third | 16 | | party or any rental assistance program in support of an | 17 | | occupant's housing; | 18 | | (3) shall apply receipts to payment of ordinary | 19 | | operating expenses,
including royalties, rents and other | 20 | | expenses of management;
| 21 | | (4) shall pay any shared or common expense assessments | 22 | | due to any
association of owners of interests in real | 23 | | estate to the extent that such
assessments are or may | 24 | | become a lien against the mortgaged real estate;
| 25 | | (5) may pay the amounts due under any mortgage if the | 26 | | mortgagee thereof
is not a party in the foreclosure;
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| 1 | | (6) may carry such additional casualty and liability | 2 | | insurance as is
reasonably available and reasonable as to | 3 | | amounts and risks covered;
| 4 | | (7) may make other repairs and improvements necessary | 5 | | to comply with
building, housing, and other similar codes | 6 | | or with existing contractual
obligations affecting the | 7 | | mortgaged real estate;
| 8 | | (8) may hold receipts as reserves reasonably required | 9 | | for the foregoing purposes; and
| 10 | | (9) may take such other actions as may be reasonably | 11 | | necessary to
conserve the mortgaged real estate and other | 12 | | property subject to the
mortgage, or as otherwise | 13 | | authorized by the court.
| 14 | | (d) Allocation of Receipts. Receipts received from | 15 | | operation of the
real estate and other property subject to the | 16 | | mortgage by the receiver
shall be applied in the following | 17 | | order of priority.
| 18 | | (1) to reimbursement of the receiver for all reasonable | 19 | | costs and
expenses incurred by the receiver or the | 20 | | receiver's delegates;
| 21 | | (2) to payment of insurance premiums authorized in | 22 | | paragraph (1) of
subsection (c) of Section 15-1704;
| 23 | | (3) to payment of the receiver's delegates of any | 24 | | reasonable management
fees for managing real estate of the | 25 | | type involved;
| 26 | | (4) to payment of receiver's fees allowed by the court;
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| 1 | | (5) to payment of expenses authorized in paragraphs | 2 | | (2), (3) and (4) of
subsection (c) of Section 15-1704;
| 3 | | (6) to payment of amounts authorized in paragraph (5) | 4 | | of subsection (c)
of Section 15-1704;
| 5 | | (7) to payment of expenses authorized in paragraphs (6) | 6 | | and (7) of
subsection (c) of Section 15-1704; and
| 7 | | (8) the balance, if any, shall be held or disbursed as | 8 | | ordered by the court.
| 9 | | (e) Non-Liability for Allocations. A receiver shall in no | 10 | | event be
liable to any person for the allocation of, or failure | 11 | | to allocate,
receipts to possible expenditures within the same | 12 | | priority category.
| 13 | | (f) Notice to occupants. | 14 | | (1) Following an order appointing a receiver pursuant | 15 | | to Section 15-1704, but no later than 21 days after the | 16 | | entry of such order, the appointed receiver shall make a | 17 | | good faith effort to ascertain the identities and addresses | 18 | | of all occupants of dwelling units of the mortgaged real | 19 | | estate. | 20 | | (2) Following an order appointing a receiver pursuant | 21 | | to Section 15-1704, but no later than 21 days after the | 22 | | entry of such order, the appointed receiver shall notify | 23 | | all known occupants of dwelling units of the mortgaged real | 24 | | estate that the receiver has been appointed receiver of the | 25 | | mortgaged real estate. Such notice shall be in writing and | 26 | | shall: |
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| 1 | | (i) identify the occupant being served by the name | 2 | | known to the receiver; | 3 | | (ii) inform the occupant that the mortgaged real | 4 | | estate at which the dwelling unit is located is the | 5 | | subject of a foreclosure action and that control of the | 6 | | mortgaged real estate has changed; | 7 | | (iii) provide the name, address, and telephone | 8 | | number of the individual or entity whom occupants may | 9 | | contact with concerns about the mortgaged real estate | 10 | | or to request repairs of that property; | 11 | | (iv) include the following language, or language | 12 | | that is substantially similar:
"This is NOT a notice to | 13 | | vacate the premises. You may wish to contact a lawyer | 14 | | or your local legal aid or housing counseling agency to | 15 | | discuss any rights that you may have."; and | 16 | | (v) include the name of the case, the case number, | 17 | | and the court where the foreclosure action is pending ; | 18 | | and . | 19 | | (vi) provide instructions on the method of payment | 20 | | of future rent, if applicable. | 21 | | (3) The written notice required by item (2) of this | 22 | | subsection (f) shall be served by delivering a copy thereof | 23 | | to the known occupant, or by leaving the same with some | 24 | | person of the age of 13 years or upwards, who is residing | 25 | | on or in possession of the premises; or by sending a copy | 26 | | of the notice to the known occupant by first-class mail, |
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| 1 | | addressed to the occupant by the name known to the | 2 | | receiver. | 3 | | (4) In the event that a receiver ascertains the | 4 | | identity and address of an occupant of a dwelling unit of | 5 | | the mortgaged real estate more than 21 days after | 6 | | appointment pursuant to Section 15-1704, the receiver | 7 | | shall provide the notice required by item (2) of this | 8 | | subsection (f) within 7 days of ascertaining the identity | 9 | | and address of the occupant. | 10 | | (5)(i) A receiver who fails to comply with items (1), | 11 | | (2), (3), and (4) of this subsection (f) may not collect | 12 | | any rent due and owing from a known occupant, or terminate | 13 | | a known occupant's tenancy for non-payment of such rent, | 14 | | until the receiver has served the notice described in item | 15 | | (2) of this subsection (f) upon the known occupant. After | 16 | | providing such notice, the receiver may collect any and all | 17 | | rent otherwise due and owing the receiver from the known | 18 | | occupant and may terminate the known occupant's tenancy for | 19 | | non-payment of such rent if the receiver otherwise has such | 20 | | right to terminate. | 21 | | (ii) An occupant who previously paid rent for the | 22 | | current rental period to the mortgagor, or other entity | 23 | | with the authority to operate, manage, and conserve the | 24 | | mortgaged real estate at the time of payment, shall not be | 25 | | held liable for that rent by the receiver, and the | 26 | | occupant's tenancy shall not be terminated for non-payment |
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| 1 | | of rent for that rental period. | 2 | | (6) Within 21 days of appointment, the receiver shall | 3 | | post a written notice on the primary entrance of each | 4 | | dwelling unit subject to the foreclosure action that | 5 | | informs occupants that the receiver has been appointed to | 6 | | operate and manage the property. This notice shall: | 7 | | (i) inform occupant that the dwelling unit is the | 8 | | subject of a foreclosure action and that control of the | 9 | | mortgaged real estate has changed; | 10 | | (ii) include the following language: "This is NOT a | 11 | | notice to vacate the premises."; and | 12 | | (iii) provide the name, address, and telephone | 13 | | number of the individual or entity whom occupants may | 14 | | contact with concerns about the mortgaged real estate | 15 | | or to request repairs of the property ; and . | 16 | | (iv) provide instructions on the method of payment | 17 | | of future rent, if applicable. | 18 | | (7)(i) The provisions of item (5) of this subsection | 19 | | (f) shall be the exclusive remedy for the failure of a | 20 | | receiver to provide notice to a known occupant under this | 21 | | Section. | 22 | | (ii) This Section shall not abrogate any right that a | 23 | | receiver may have to possession of the mortgaged real | 24 | | estate and to maintain a proceeding against an occupant of | 25 | | a dwelling unit for possession under Article IX 9 of this | 26 | | Code or subsection (h) of Section 15-1701. |
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| 1 | | (g) Increase of rents. Notwithstanding any other provision | 2 | | of this Article, a receiver shall not charge an occupant of the | 3 | | mortgaged real estate a rental amount above that which the | 4 | | occupant had been paying for use and occupancy of the mortgaged | 5 | | real estate prior to the appointment of a receiver without | 6 | | leave of court. The court may allow an increase of rent if, | 7 | | upon motion by the receiver, the court finds by a preponderance | 8 | | of the evidence, that the increase of rent is necessary to | 9 | | operate, manage, and conserve the mortgaged real estate | 10 | | pursuant to this Section. A list of the current rents for each | 11 | | unit in the mortgaged real estate, and a list of the proposed | 12 | | rent increase for each of those units, must be attached to a | 13 | | motion for a rent increase under this subsection (g). All | 14 | | occupants of the mortgaged real estate who may be affected by | 15 | | the motion for a rent increase, if not otherwise entitled to | 16 | | notice, shall be notified in writing of the nature of the | 17 | | motion, the date and time of the motion, and the court where | 18 | | the motion will be heard. Such notice shall be by personal | 19 | | service or first-class mail. In the event that the receiver and | 20 | | an occupant of a dwelling unit agree to a rent increase for | 21 | | that dwelling unit, the receiver is excused from the | 22 | | requirements of this subsection (g) as to that dwelling unit. | 23 | | Nothing in this subsection (g) shall alter the terms of any | 24 | | lease agreement. | 25 | | (h) Removal. The court may remove a receiver upon a showing | 26 | | of good
cause, in which case a new receiver may be appointed in |
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| 1 | | accordance with
subsection (b) of Section 15-1702 and | 2 | | subsection (a) of Section 15-1704.
| 3 | | (Source: P.A. 96-111, eff. 10-29-09.)
| 4 | | Section 95. No acceleration or delay. Where this Act makes | 5 | | changes in a statute that is represented in this Act by text | 6 | | that is not yet or no longer in effect (for example, a Section | 7 | | represented by multiple versions), the use of that text does | 8 | | not accelerate or delay the taking effect of (i) the changes | 9 | | made by this Act or (ii) provisions derived from any other | 10 | | Public Act.
| 11 | | Section 99. Effective date. This Act takes effect 90 days | 12 | | after becoming law.
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