Illinois General Assembly - Full Text of SB1602
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Full Text of SB1602  98th General Assembly

SB1602sam001 98TH GENERAL ASSEMBLY

Sen. Jacqueline Y. Collins

Filed: 2/28/2013

 

 


 

 


 
09800SB1602sam001LRB098 09678 HEP 41039 a

1
AMENDMENT TO SENATE BILL 1602

2    AMENDMENT NO. ______. Amend Senate Bill 1602 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Sections 9-121, 9-205, 9-207, 15-1202.5, 15-1506,
615-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704 and by adding
7Section 9-207.5 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
11the court file created when a forcible entry and detainer
12action is filed with the court.
13    (b) Discretionary sealing of court file. The court may
14order that a court file in a forcible entry and detainer action
15be placed under seal if the court finds that the plaintiff's
16action is sufficiently without a basis in fact or law, which

 

 

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1may include a lack of jurisdiction, that placing the court file
2under seal is clearly in the interests of justice, and that
3those interests are not outweighed by the public's interest in
4knowing about the record.
5    (c) Mandatory sealing of court file. The court file
6relating to a forcible entry and detainer action brought
7against a tenant under Section 9-207.5 of this Code or as set
8forth in subdivision (h)(5) of Section 15-1701 of this Code
9shall be placed under seal who would have lawful possession of
10the premises but for the foreclosure on the property shall be
11sealed pursuant to Section 15-1701.
12(Source: P.A. 96-1131, eff. 7-20-10.)
 
13    (735 ILCS 5/9-205)  (from Ch. 110, par. 9-205)
14    Sec. 9-205. Notice to terminate tenancy from year to year.
15Except as provided in Section 9-206 and Section 9-207.5 of this
16Act, in all cases of tenancy from year to year, 60 days'
17notice, in writing, shall be sufficient to terminate the
18tenancy at the end of the year. The notice may be given at any
19time within 4 months preceding the last 60 days of the year.
20(Source: P.A. 82-280.)
 
21    (735 ILCS 5/9-207)  (from Ch. 110, par. 9-207)
22    Sec. 9-207. Notice to terminate tenancy for less than a
23year.
24    (a) Except as provided in Section 9-207.5 of this Code, in

 

 

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1In all cases of tenancy from week to week, where the tenant
2holds over without special agreement, the landlord may
3terminate the tenancy by 7 days' notice, in writing, and may
4maintain an action for forcible entry and detainer or
5ejectment.
6    (b) Except as provided in Section 9-207.5 of this Code, in
7In all cases of tenancy for any term less than one year, other
8than tenancy from week to week, where the tenant holds over
9without special agreement, the landlord may terminate the
10tenancy by 30 days' notice, in writing, and may maintain an
11action for forcible entry and detainer or ejectment.
12(Source: P.A. 82-280.)
 
13    (735 ILCS 5/9-207.5 new)
14    Sec. 9-207.5. Termination of tenancies after foreclosure.
15In the case of a foreclosure under Article 15 of this Code, the
16landlord may terminate a tenancy established prior to the
17confirmation of sale under Section 15-1508 of this Code only
18(i) at the end of the term of the lease agreement by 90 days'
19written notice issued not earlier than 90 days prior to the end
20of the term of the lease; or (ii) in the case of a month to
21month or week to week tenancy, by 90 days' written notice.
22Nothing in this Section shall abrogate the rights of a landlord
23to terminate a tenancy under Sections 9-118, 9-119, 9-120,
249-209, or 9-210 of this Code.
 

 

 

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1    (735 ILCS 5/15-1202.5)
2    Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
315-1506, 15-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704
4only, "dwelling unit" means a room or suite of rooms providing
5complete, independent living facilities for at least one
6person, including permanent provisions for sanitation,
7cooking, eating, sleeping, and other activities routinely
8associated with daily life.
9(Source: P.A. 96-111, eff. 10-29-09; 97-575, eff. 8-26-11.)
 
10    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
11    Sec. 15-1506. Judgment.
12    (a) Evidence. In the trial of a foreclosure, the evidence
13to support the allegations of the complaint shall be taken in
14open court, except:
15        (1) where an allegation of fact in the complaint is not
16    denied by a party's verified answer or verified
17    counterclaim, or where a party pursuant to subsection (b)
18    of Section 2-610 of the Code of Civil Procedure states, or
19    is deemed to have stated, in its pleading that it has no
20    knowledge of such allegation sufficient to form a belief
21    and attaches the required affidavit, a sworn verification
22    of the complaint or a separate affidavit setting forth such
23    fact is sufficient evidence thereof against such party and
24    no further evidence of such fact shall be required; and
25        (2) where all the allegations of fact in the complaint

 

 

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1    have been proved by verification of the complaint or
2    affidavit, the court upon motion supported by an affidavit
3    stating the amount which is due the mortgagee, shall enter
4    a judgment of foreclosure as requested in the complaint.
5    (b) Instruments. In all cases the evidence of the
6indebtedness and the mortgage foreclosed shall be exhibited to
7the court and appropriately marked, and copies thereof shall be
8filed with the court.
9    (c) Summary and Default Judgments. Nothing in this Section
1015-1506 shall prevent a party from obtaining a summary or
11default judgment authorized by Article II of the Code of Civil
12Procedure.
13    (d) Notice of Entry of Default. When any judgment in a
14foreclosure is entered by default, notice of such judgment
15shall be given in accordance with Section 2-1302 of the Code of
16Civil Procedure.
17    (e) Matters Required in Judgment. A judgment of foreclosure
18shall include the last date for redemption and all rulings of
19the court entered with respect to each request for relief set
20forth in the complaint. The omission of the date for redemption
21shall not extend the time for redemption or impair the validity
22of the judgment.
23    (f) Special Matters in Judgment. Without limiting the
24general authority and powers of the court, special matters may
25be included in the judgment of foreclosure if sought by a party
26in the complaint or by separate motion. Such matters may

 

 

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1include, without limitation:
2        (1) a manner of sale other than public auction;
3        (2) a sale by sealed bid;
4        (3) an official or other person who shall be the
5    officer to conduct the sale other than the one customarily
6    designated by the court;
7        (4) provisions for non-exclusive broker listings or
8    designating a duly licensed real estate broker nominated by
9    one of the parties to exclusively list the real estate for
10    sale;
11        (5) the fees or commissions to be paid out of the sale
12    proceeds to the listing or other duly licensed broker, if
13    any, who shall have procured the accepted bid;
14        (6) the fees to be paid out of the sale proceeds to an
15    auctioneer, if any, who shall have been authorized to
16    conduct a public auction sale;
17        (7) whether and in what manner and with what content
18    signs shall be posted on the real estate;
19        (8) a particular time and place at which such bids
20    shall be received;
21        (9) a particular newspaper or newspapers in which
22    notice of sale shall be published;
23        (10) the format for the advertising of such sale,
24    including the size, content and format of such advertising,
25    and additional advertising of such sale;
26        (11) matters or exceptions to which title in the real

 

 

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1    estate may be subject at the sale;
2        (12) a requirement that title insurance in a specified
3    form be provided to a purchaser at the sale, and who shall
4    pay for such insurance;
5        (13) whether and to what extent bids with mortgage or
6    other contingencies will be allowed;
7        (14) such other matters as approved by the court to
8    ensure sale of the real estate for the most commercially
9    favorable price for the type of real estate involved.
10    (g) Agreement of the Parties. If all of the parties agree
11in writing on the minimum price and that the real estate may be
12sold to the first person who offers in writing to purchase the
13real estate for such price, and on such other commercially
14reasonable terms and conditions as the parties may agree, then
15the court shall order the real estate to be sold on such terms,
16subject to confirmation of the sale in accordance with Section
1715-1508.
18    (h) Postponement of Proving Priority. With the approval of
19the court prior to the entry of the judgment of foreclosure, a
20party claiming an interest in the proceeds of the sale of the
21mortgaged real estate may defer proving the priority of such
22interest until the hearing to confirm the sale.
23    (i) Effect of Judgment and Lien.
24        (1) Upon the entry of the judgment of foreclosure, all
25    rights of a party in the foreclosure against the mortgagor
26    provided for in the judgment of foreclosure or this Article

 

 

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1    shall be secured by a lien on the mortgaged real estate,
2    which lien shall have the same priority as the claim to
3    which the judgment relates and shall be terminated upon
4    confirmation of a judicial sale in accordance with this
5    Article.
6        (2) Upon the entry of the judgment of foreclosure, the
7    rights in the real estate subject to the judgment of
8    foreclosure of (i) all persons made a party in the
9    foreclosure and (ii) all nonrecord claimants given notice
10    in accordance with paragraph (2) of subsection (c) of
11    Section 15-1502, shall be solely as provided for in the
12    judgment of foreclosure and in this Article.
13        (3) Entry of a judgment of foreclosure does not
14    terminate or otherwise affect the rights or interest of any
15    occupant of a dwelling unit who has a lease or tenancy
16    resulting from an arm's length transaction and who is not
17    the mortgagor, whether or not the occupant has been made a
18    party in the foreclosure.
19(Source: P.A. 85-907.)
 
20    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
21    Sec. 15-1508. Report of Sale and Confirmation of Sale.
22    (a) Report. The person conducting the sale shall promptly
23make a report to the court, which report shall include a copy
24of all receipts and, if any, certificate of sale.
25    (b) Hearing. Upon motion and notice in accordance with

 

 

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1court rules applicable to motions generally, which motion shall
2not be made prior to sale, the court shall conduct a hearing to
3confirm the sale. Unless the court finds that (i) a notice
4required in accordance with subsection (c) of Section 15-1507
5was not given, (ii) the terms of sale were unconscionable,
6(iii) the sale was conducted fraudulently, or (iv) justice was
7otherwise not done, the court shall then enter an order
8confirming the sale. The confirmation order shall include a
9name, address, and telephone number of the holder of the
10certificate of sale or deed issued pursuant to that certificate
11or, if no certificate or deed was issued, the purchaser, whom a
12municipality or county may contact with concerns about the real
13estate. The confirmation order may also:
14        (1) approve the mortgagee's fees and costs arising
15    between the entry of the judgment of foreclosure and the
16    confirmation hearing, those costs and fees to be allowable
17    to the same extent as provided in the note and mortgage and
18    in Section 15-1504;
19        (2) provide for a personal judgment against any party
20    for a deficiency; and
21        (3) determine the priority of the judgments of parties
22    who deferred proving the priority pursuant to subsection
23    (h) of Section 15-1506, but the court shall not defer
24    confirming the sale pending the determination of such
25    priority.
26    (b-5) Notice with respect to residential real estate. With

 

 

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1respect to residential real estate, the notice required under
2subsection (b) of this Section shall be sent to the mortgagor
3even if the mortgagor has previously been held in default. In
4the event the mortgagor has filed an appearance, the notice
5shall be sent to the address indicated on the appearance. In
6all other cases, the notice shall be sent to the mortgagor at
7the common address of the foreclosed property. The notice shall
8be sent by first class mail. Unless the right to possession has
9been previously terminated by the court, the notice shall
10include the following language in 12-point boldface
11capitalized type:
12
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
13
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
14
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
15
ILLINOIS MORTGAGE FORECLOSURE LAW.
16    (b-10) Notice of confirmation order sent to municipality or
17county. A copy of the confirmation order required under
18subsection (b) shall be sent to the municipality in which the
19foreclosed property is located, or to the county within the
20boundary of which the foreclosed property is located if the
21foreclosed property is located in an unincorporated territory.
22A municipality or county must clearly publish on its website a
23single address to which such notice shall be sent. If a
24municipality or county does not maintain a website, then the
25municipality or county must publicly post in its main office a
26single address to which such notice shall be sent. In the event

 

 

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1that a municipality or county has not complied with the
2publication requirement in this subsection (b-10), then such
3notice to the municipality or county shall be provided pursuant
4to Section 2-211 of the Code of Civil Procedure.
5    (c) Failure to Give Notice. If any sale is held without
6compliance with subsection (c) of Section 15-1507 of this
7Article, any party entitled to the notice provided for in
8paragraph (3) of that subsection (c) who was not so notified
9may, by motion supported by affidavit made prior to
10confirmation of such sale, ask the court which entered the
11judgment to set aside the sale. Any such party shall guarantee
12or secure by bond a bid equal to the successful bid at the
13prior sale, unless the party seeking to set aside the sale is
14the mortgagor, the real estate sold at the sale is residential
15real estate, and the mortgagor occupies the residential real
16estate at the time the motion is filed. In that event, no
17guarantee or bond shall be required of the mortgagor. Any
18subsequent sale is subject to the same notice requirement as
19the original sale.
20    (d) Validity of Sale. Except as provided in subsection (c)
21of Section 15-1508, no sale under this Article shall be held
22invalid or be set aside because of any defect in the notice
23thereof or in the publication of the same, or in the
24proceedings of the officer conducting the sale, except upon
25good cause shown in a hearing pursuant to subsection (b) of
26Section 15-1508. At any time after a sale has occurred, any

 

 

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1party entitled to notice under paragraph (3) of subsection (c)
2of Section 15-1507 may recover from the mortgagee any damages
3caused by the mortgagee's failure to comply with such paragraph
4(3). Any party who recovers damages in a judicial proceeding
5brought under this subsection may also recover from the
6mortgagee the reasonable expenses of litigation, including
7reasonable attorney's fees.
8    (d-5) Making Home Affordable Program. The court that
9entered the judgment shall set aside a sale held pursuant to
10Section 15-1507, upon motion of the mortgagor at any time prior
11to the confirmation of the sale, if the mortgagor proves by a
12preponderance of the evidence that (i) the mortgagor has
13applied for assistance under the Making Home Affordable Program
14established by the United States Department of the Treasury
15pursuant to the Emergency Economic Stabilization Act of 2008,
16as amended by the American Recovery and Reinvestment Act of
172009, and (ii) the mortgaged real estate was sold in material
18violation of the program's requirements for proceeding to a
19judicial sale. The provisions of this subsection (d-5), except
20for this sentence, shall become inoperative on January 1, 2014
21for all actions filed under this Article after December 31,
222013, in which the mortgagor did not apply for assistance under
23the Making Home Affordable Program on or before December 31,
242013.
25    (e) Deficiency Judgment. In any order confirming a sale
26pursuant to the judgment of foreclosure, the court shall also

 

 

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1enter a personal judgment for deficiency against any party (i)
2if otherwise authorized and (ii) to the extent requested in the
3complaint and proven upon presentation of the report of sale in
4accordance with Section 15-1508. Except as otherwise provided
5in this Article, a judgment may be entered for any balance of
6money that may be found due to the plaintiff, over and above
7the proceeds of the sale or sales, and enforcement may be had
8for the collection of such balance, the same as when the
9judgment is solely for the payment of money. Such judgment may
10be entered, or enforcement had, only in cases where personal
11service has been had upon the persons personally liable for the
12mortgage indebtedness, unless they have entered their
13appearance in the foreclosure action.
14    (f) Satisfaction. Upon confirmation of the sale, the
15judgment stands satisfied to the extent of the sale price less
16expenses and costs. If the order confirming the sale includes a
17deficiency judgment, the judgment shall become a lien in the
18manner of any other judgment for the payment of money.
19    (g) The order confirming the sale shall include,
20notwithstanding any previous orders awarding possession during
21the pendency of the foreclosure, an award to the purchaser of
22possession of the mortgaged real estate, as of the date 30 days
23after the entry of the order, against the parties to the
24foreclosure whose interests have been terminated.
25    An order of possession authorizing the removal of a person
26from possession of the mortgaged real estate shall be entered

 

 

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1and enforced only against those persons personally named as
2individuals in the complaint or the petition under subsection
3(h) of Section 15-1701. However, no order of possession issued
4under this Section shall be entered against an occupant of a
5dwelling unit of the mortgaged real estate who has been
6personally named in the foreclosure if that occupant is not the
7mortgagor and has a lease or tenancy resulting from an arm's
8length transaction. An and in the order of possession and shall
9not be entered and enforced against any person who is only
10generically described as an unknown owner or nonrecord claimant
11or by another generic designation in the complaint.
12    Notwithstanding the preceding paragraph, the failure to
13personally name, include, or seek an award of possession of the
14mortgaged real estate against a person in the confirmation
15order shall not abrogate any right that the purchaser may have
16to possession of the mortgaged real estate and to maintain a
17proceeding against that person for possession under Article 9
18of this Code or, if applicable, under subsection (h) of Section
1915-1701; and possession against a person who (1) has not been
20personally named as a party to the foreclosure and (2) has not
21been provided an opportunity to be heard in the foreclosure
22proceeding may be sought only by maintaining a proceeding under
23Article 9 of this Code or, if applicable, under subsection (h)
24of Section 15-1701.
25    (h) With respect to mortgaged real estate containing 5 or
26more dwelling units, the order confirming the sale shall also

 

 

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1provide that (i) the mortgagor shall transfer to the purchaser
2the security deposits, if any, that the mortgagor received to
3secure payment of rent or to compensate for damage to the
4mortgaged real estate from any current occupant of a dwelling
5unit of the mortgaged real estate, as well as any statutory
6interest that has not been paid to the occupant, and (ii) the
7mortgagor shall provide an accounting of the security deposits
8that are transferred, including the name and address of each
9occupant for whom the mortgagor holds the deposit and the
10amount of the deposit and any statutory interest.
11(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
1296-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
138-26-11; 97-1159, eff. 1-29-13.)
 
14    (735 ILCS 5/15-1508.5)
15    Sec. 15-1508.5. Notice by holder or purchaser to known
16occupants of dwelling units of mortgaged real estate.
17    (a) The holder of the certificate of sale or deed issued
18pursuant to that certificate or, if no certificate or deed was
19issued, the purchaser, shall:
20        (1) following the judicial sale under Section 15-1507,
21    but no later than 21 days after the confirmation of sale
22    under Section 15-1508, make a good faith effort to
23    ascertain the identities and addresses of all occupants of
24    dwelling units of the mortgaged real estate; and
25        (2) following the order confirming sale under Section

 

 

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1    15-1508, but no later than 21 days after the order
2    confirming sale, notify all known occupants of dwelling
3    units of the mortgaged real estate that the holder or
4    purchaser has acquired the mortgaged real estate. The
5    notice shall be in writing and shall:
6            (i) identify the occupant being served by the name
7        known to the holder or purchaser;
8            (ii) inform the occupant that the mortgaged real
9        estate at which the dwelling unit is located is the
10        subject of a foreclosure and that control of the
11        mortgaged real estate has changed;
12            (iii) provide the name, address, and telephone
13        number of an individual or entity whom the occupants
14        may contact with concerns about the mortgaged real
15        estate or to request repairs of that property;
16            (iv) include the following language, or language
17        that is substantially similar: "This is NOT a notice to
18        vacate the premises. You may wish to contact a lawyer
19        or your local legal aid or housing counseling agency to
20        discuss any rights that you may have."; and
21            (v) include the name of the case, the case number,
22        and the court where the order confirming the sale has
23        been entered; and .
24            (vi) provide instructions on the method of payment
25        of future rent, if applicable.
26    (b) The written notice required by subsection (a) of this

 

 

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1Section shall be served by delivering a copy thereof to the
2known occupant, or by leaving the same with some person of the
3age of 13 years or upwards who is residing on or in possession
4of the premises, or by sending a copy of the notice to the
5known occupant by first-class mail, addressed to the occupant
6by the name known to the holder or purchaser.
7    (c) In the event that the holder or purchaser ascertains
8the identity and address of an occupant of a dwelling unit of
9the mortgaged real estate more than 21 days after the
10confirmation of sale under Section 15-1508, the holder or
11purchaser shall provide the notice required by subparagraph (2)
12of subsection (a) within 7 days of ascertaining the identity
13and address of the occupant.
14    (d)(i) A holder or purchaser who fails to comply with
15subsections (a), (b), and (c) may not collect any rent due and
16owing from a known occupant, or terminate a known occupant's
17tenancy for non-payment of such rent, until the holder or
18purchaser has served the notice described in paragraph (2) of
19subsection (a) of this Section upon the known occupant. After
20providing such notice, the holder or purchaser may collect any
21and all rent accruing after service of the notice otherwise due
22and owing the holder or purchaser from the known occupant and
23may terminate the known occupant's tenancy for non-payment of
24such rent if the holder or purchaser otherwise has such right
25to terminate.
26    (ii) An occupant who previously paid rent for the current

 

 

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1rental period to the mortgagor, or other entity with the
2authority to operate, manage, and conserve the mortgaged real
3estate at the time of payment, shall not be held liable for
4that rent by the holder or purchaser, and the occupant's
5tenancy shall not be terminated for non-payment of rent for
6that rental period.
7    (e) Within 21 days of the confirmation of sale under
8Section 15-1508, the holder or purchaser shall post a written
9notice on the primary entrance of each dwelling unit subject to
10the foreclosure action. This notice shall:
11        (i) inform occupant that the dwelling unit is the
12    subject of a foreclosure action and that control of the
13    mortgaged real estate has changed;
14        (ii) include the following language: "This is NOT a
15    notice to vacate the premises."; and
16        (iii) provide the name, address, and telephone number
17    of the individual or entity whom occupants may contact with
18    concerns about the mortgaged real estate or to request
19    repairs of the property; and .
20        (iv) provide instructions on the method of payment of
21    future rent, if applicable.
22    (f)(i) The provisions of subsection (d) of this Section
23shall be the exclusive remedy for the failure of a holder or
24purchaser to provide notice to a known occupant under this
25Section.
26    (ii) This Section shall not abrogate any right that a

 

 

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1holder or purchaser may have to possession of the mortgaged
2real estate and to maintain a proceeding against an occupant of
3a dwelling unit for possession under Article 9 of this Code or
4subsection (h) of Section 15-1701.
5    (iii) In the event that the holder or purchaser is a
6mortgagee in possession of the mortgaged real estate pursuant
7to Section 15-1703 at the time of the confirmation of sale and
8has complied with requirements of subsection (a-5) of Section
915-1703, the holder or purchaser is excused from the
10requirements of subsections (a) and (e) of this Section.
11    (iv) A holder or purchaser is not required to provide the
12notice required by this Section to a mortgagor or party against
13whom an order of possession has been entered authorizing the
14removal of the mortgagor or party pursuant to subsection (g) of
15Section 15-1508.
16(Source: P.A. 96-111, eff. 10-29-09.)
 
17    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
18    Sec. 15-1701. Right to possession.
19    (a) General. The provisions of this Article shall govern
20the right to possession of the mortgaged real estate during
21foreclosure. Possession under this Article includes physical
22possession of the mortgaged real estate to the same extent to
23which the mortgagor, absent the foreclosure, would have been
24entitled to physical possession. For the purposes of Part 17,
25real estate is residential real estate only if it is

 

 

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1residential real estate at the time the foreclosure is
2commenced.
3    (b) Pre-Judgment. Prior to the entry of a judgment of
4foreclosure:
5        (1) In the case of residential real estate, the
6    mortgagor shall be entitled to possession of the real
7    estate except if (i) the mortgagee shall object and show
8    good cause, (ii) the mortgagee is so authorized by the
9    terms of the mortgage or other written instrument, and
10    (iii) the court is satisfied that there is a reasonable
11    probability that the mortgagee will prevail on a final
12    hearing of the cause, the court shall upon request place
13    the mortgagee in possession. If the residential real estate
14    consists of more than one dwelling unit, then for the
15    purpose of this Part residential real estate shall mean
16    only that dwelling unit or units occupied by persons
17    described in clauses (i), (ii) and (iii) of Section
18    15-1219.
19        (2) In all other cases, if (i) the mortgagee is so
20    authorized by the terms of the mortgage or other written
21    instrument, and (ii) the court is satisfied that there is a
22    reasonable probability that the mortgagee will prevail on a
23    final hearing of the cause, the mortgagee shall upon
24    request be placed in possession of the real estate, except
25    that if the mortgagor shall object and show good cause, the
26    court shall allow the mortgagor to remain in possession.

 

 

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1    (c) Judgment Through 30 Days After Sale Confirmation. After
2the entry of a judgment of foreclosure and through the 30th day
3after a foreclosure sale is confirmed:
4        (1) Subsection (b) of Section 15-1701 shall be
5    applicable, regardless of the provisions of the mortgage or
6    other instrument, except that after a sale pursuant to the
7    judgment the holder of the certificate of sale (or, if
8    none, the purchaser at the sale) shall have the mortgagee's
9    right to be placed in possession, with all rights and
10    duties of a mortgagee in possession under this Article.
11        (2) Notwithstanding paragraph (1) of subsection (b)
12    and paragraph (1) of subsection (c) of Section 15-1701,
13    upon request of the mortgagee, a mortgagor of residential
14    real estate shall not be allowed to remain in possession
15    between the expiration of the redemption period and through
16    the 30th day after sale confirmation unless (i) the
17    mortgagor pays to the mortgagee or such holder or
18    purchaser, whichever is applicable, monthly the lesser of
19    the interest due under the mortgage calculated at the
20    mortgage rate of interest applicable as if no default had
21    occurred or the fair rental value of the real estate, or
22    (ii) the mortgagor otherwise shows good cause. Any amounts
23    paid by the mortgagor pursuant to this subsection shall be
24    credited against the amounts due from the mortgagor.
25    (d) After 30 Days After Sale Confirmation. The holder of
26the certificate of sale or deed issued pursuant to that

 

 

09800SB1602sam001- 22 -LRB098 09678 HEP 41039 a

1certificate or, if no certificate or deed was issued, the
2purchaser, except to the extent the holder or purchaser may
3consent otherwise, shall be entitled to possession of the
4mortgaged real estate, as of the date 30 days after the order
5confirming the sale is entered, against those parties to the
6foreclosure whose interests the court has ordered terminated,
7without further notice to any party, further order of the
8court, or resort to proceedings under any other statute other
9than this Article. This right to possession shall be limited by
10the provisions governing entering and enforcing orders of
11possession under subsection (g) of Section 15-1508. If the
12holder or purchaser determines that there are occupants of the
13mortgaged real estate who have not been made parties to the
14foreclosure and had their interests terminated therein, the
15holder or purchaser may bring a proceeding under subsection (h)
16of this Section, if applicable, or under Article 9 of this Code
17to terminate the rights of possession of any such occupants.
18The holder or purchaser shall not be entitled to proceed
19against any such occupant under Article 9 of this Code until
20after 30 days after the order confirming the sale is entered.
21    (e) Termination of Leases. A lease of all or any part of
22the mortgaged real estate shall not be terminated automatically
23solely by virtue of the entry into possession by (i) a
24mortgagee or receiver prior to the entry of an order confirming
25the sale, (ii) the holder of the certificate of sale, (iii) the
26holder of the deed issued pursuant to that certificate, or (iv)

 

 

09800SB1602sam001- 23 -LRB098 09678 HEP 41039 a

1if no certificate or deed was issued, the purchaser at the
2sale.
3    (f) Other Statutes; Instruments. The provisions of this
4Article providing for possession of mortgaged real estate shall
5supersede any other inconsistent statutory provisions. In
6particular, and without limitation, whenever a receiver is
7sought to be appointed in any action in which a foreclosure is
8also pending, a receiver shall be appointed only in accordance
9with this Article. Except as may be authorized by this Article,
10no mortgage or other instrument may modify or supersede the
11provisions of this Article.
12    (g) Certain Leases. Leases of the mortgaged real estate
13entered into by a mortgagee in possession or a receiver and
14approved by the court in a foreclosure shall be binding on all
15parties, including the mortgagor after redemption, the
16purchaser at a sale pursuant to a judgment of foreclosure and
17any person acquiring an interest in the mortgaged real estate
18after entry of a judgment of foreclosure in accordance with
19Sections 15-1402 and 15-1403.
20    (h) Proceedings Against Certain Occupants.
21        (1) The mortgagee-in-possession of the mortgaged real
22    estate under Section 15-1703, a receiver appointed under
23    Section 15-1704, a holder of the certificate of sale or
24    deed, or the purchaser may, at any time during the pendency
25    of the foreclosure and up to 90 days after the date of the
26    order confirming the sale, file a supplemental petition for

 

 

09800SB1602sam001- 24 -LRB098 09678 HEP 41039 a

1    possession against a person not personally named as a party
2    to the foreclosure. The supplemental petition for
3    possession shall name each such occupant against whom
4    possession is sought and state the facts upon which the
5    claim for relief is premised. This subsection (h) does not
6    apply to any occupant of a dwelling unit of the mortgaged
7    real estate who has a lease or tenancy resulting from an
8    arm's length transaction and who is not the mortgagor.
9        (2) The petitioner shall serve upon each named occupant
10    the petition, a notice of hearing on the petition, and, if
11    any, a copy of the certificate of sale or deed. The
12    proceeding for the termination of such occupant's
13    possessory interest, including service of the notice of the
14    hearing and the petition, shall in all respects comport
15    with the requirements of Article 9 of this Code, except as
16    otherwise specified in this Section. The hearing shall be
17    no less than 21 days from the date of service of the
18    notice.
19        (3) The supplemental petition shall be heard as part of
20    the foreclosure proceeding and without the payment of
21    additional filing fees. An order for possession obtained
22    under this Section shall name each occupant whose interest
23    has been terminated, shall recite that it is only effective
24    as to the occupant so named and those holding under them,
25    and shall be enforceable for no more than 120 days after
26    its entry, except that the 120-day period may be extended

 

 

09800SB1602sam001- 25 -LRB098 09678 HEP 41039 a

1    to the extent and in the manner provided in Section 9-117
2    of Article 9 and except as provided in item (4) of this
3    subsection (h).
4        (4) In a case of foreclosure where the occupant is
5    current on his or her rent, or where timely written notice
6    of to whom and where the rent is to be paid has not been
7    provided to the occupant, or where the occupant has made
8    good-faith efforts to make rental payments in order to keep
9    current, any order of possession must allow the occupant to
10    retain possession of the property covered in his or her
11    rental agreement (i) for 120 days following the notice of
12    the hearing on the supplemental petition that has been
13    properly served upon the occupant, or (ii) through the
14    duration of his or her lease, whichever is shorter,
15    provided that if the duration of his or her lease is less
16    than 30 days from the date of the order, the order shall
17    allow the occupant to retain possession for 30 days from
18    the date of the order. A mortgagee in possession, receiver,
19    holder of a certificate of sale or deed, or purchaser at
20    the judicial sale, who asserts that the occupant is not
21    current in rent, shall file an affidavit to that effect in
22    the supplemental petition proceeding. If the occupant has
23    been given timely written notice of to whom and where the
24    rent is to be paid, this item (4) shall only apply if the
25    occupant continues to pay his or her rent in full during
26    the 120-day period or has made good-faith efforts to pay

 

 

09800SB1602sam001- 26 -LRB098 09678 HEP 41039 a

1    the rent in full during that period. No
2    mortgagee-in-possession, receiver or holder of a
3    certificate of sale or deed, or purchaser who fails to file
4    a supplemental petition under this subsection during the
5    pendency of a mortgage foreclosure shall file a forcible
6    entry and detainer action against an occupant of the
7    mortgaged real estate until 90 days after a notice of
8    intent to file such action has been properly served upon
9    the occupant.
10        (5) The court records relating to a supplemental
11    petition for possession filed under this subsection (h)
12    against an occupant who is entitled to notice under item
13    (4) of this subsection (h), or relating to a forcible entry
14    and detainer action brought against an occupant who would
15    have lawful possession of the premises but for the
16    foreclosure of a mortgage on the property, shall be ordered
17    sealed and shall not be disclosed to any person, other than
18    a law enforcement officer or any other representative of a
19    governmental entity, except upon further order of the
20    court.
21    (i) Occupants of Dwelling Units.
22        (1) The holder of the certificate of sale, the holder
23    of the deed issued pursuant to that certificate, or if no
24    certificate or deed was issued, the purchaser at the sale
25    shall: (i) assume the lease or tenancy of the mortgaged
26    real estate resulting from an arm's length transaction

 

 

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1    entered into prior to the confirmation of sale under
2    Section 15-1508 of this Code; (ii) assume any federal,
3    state, or local housing subsidy contract for the dwelling
4    unit for the duration of the contract or the assumed lease,
5    whichever is shorter; (iii) assume his or her interest in
6    the mortgaged real estate subject to the rights of any
7    occupant; and (iv) not terminate the occupancy or any
8    occupant's tenancy except pursuant to Article 9 of this
9    Code.
10        (2) A receiver, mortgagee, or holder of the certificate
11    of sale, the holder of the deed issued pursuant to that
12    certificate, or if no certificate or deed was issued, the
13    purchaser at the sale who offers any money or other
14    valuable consideration to an occupant of a dwelling unit as
15    an incentive to vacate the premises shall tender the offer
16    in writing along with a notice in the manner set forth in
17    paragraph (3) of this subsection (i). The offer shall: (i)
18    offer an amount that is at least either 3 times the
19    security deposit and interest that would be due to the
20    occupant under State or local law upon the termination of
21    the tenancy, or 3 months' rent, whichever is greater; (ii)
22    not require an occupant to vacate the premises earlier than
23    14 days after acceptance of the offer; (iii) not require
24    the occupant to perform any other obligation that is not
25    already required under the law or any lease or tenancy in
26    existence prior to the offer; (iv) not demand the waiver or

 

 

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1    forfeiture of any other rights or remedies the occupant may
2    have under the law; and (v) not misrepresent the occupant's
3    right to continued possession of the dwelling unit.
4        (3) A notice accompanying an offer tendered under
5    paragraph (2) of this subsection shall be headed in bold
6    14-point type "CASH-FOR-KEYS OFFER", and shall state the
7    following in 14-point type: "THIS IS AN OFFER FOR A
8    MONETARY PAYMENT IN EXCHANGE FOR VACATING THE PREMISES.
9    THIS IS NOT A DEMAND TO VACATE, AND YOU DO NOT HAVE TO
10    ACCEPT THESE TERMS. You cannot be asked to vacate sooner
11    than 14 days from the date you accept any offer, and you
12    cannot be asked to do more than your lease or tenancy
13    already requires. If you choose not to accept this offer,
14    only a judge can end your lease or tenancy. You may wish to
15    contact a lawyer or your local legal aid agency to discuss
16    any rights that you may have."
17        (4) A person whose rights have been violated under this
18    subsection may bring an action seeking: (i) all equitable
19    and legal relief, including punitive damages; (ii) an
20    amount that is the equivalent of 3 months' rent at the
21    subject property under any tenancy or lease that was
22    entered into prior to the confirmation of sale in addition
23    to $1000 per violation; and (iii) reasonable attorney's
24    fees and costs.
25        (5) This subsection does not apply to the mortgagor or
26    other person whose possessory interest in the property is

 

 

09800SB1602sam001- 29 -LRB098 09678 HEP 41039 a

1    terminated under Section 15-1508 of this Article.
2        (6) Nothing in this subsection shall be interpreted to
3    limit any code or ordinance of any unit of local government
4    that provides greater or additional protections to
5    occupants.
6(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60,
7eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
 
8    (735 ILCS 5/15-1703)  (from Ch. 110, par. 15-1703)
9    Sec. 15-1703. Mortgagee in Possession.
10    (a) Powers and Duties. A mortgagee placed in possession of
11the real estate pursuant to Section 15-1701 or Section 15-1702
12shall have:
13        (1) such power and authority with respect to the real
14    estate and other property subject to the mortgage,
15    including the right to receive the rents, issues and
16    profits thereof, as may have been conferred upon the
17    mortgagee by the terms of the mortgage or other written
18    instrument authorizing the taking of possession;
19        (2) all other rights and privileges of a mortgagee in
20    possession under law not inconsistent herewith; and
21        (3) the same powers, duties and liabilities as a
22    receiver appointed for the real estate in accordance with
23    this Article. If an order placing a mortgagee in possession
24    is modified, revoked or set aside, the mortgagee shall not
25    be liable for any damages to the extent such damages arise

 

 

09800SB1602sam001- 30 -LRB098 09678 HEP 41039 a

1    solely out of the fact that the mortgagor was removed from
2    possession or that the mortgagee was placed in possession.
3    (a-5) Notice to occupants.
4        (1) Following the order placing the mortgagee in
5    possession of the mortgaged real estate, but no later than
6    21 days after the entry of such order, the mortgagee in
7    possession shall make a good faith effort to ascertain the
8    identities and addresses of all occupants of dwelling units
9    of the mortgaged real estate.
10        (2) Following the order placing the mortgagee in
11    possession of the mortgaged real estate, but no later than
12    21 days after the entry of such order, the mortgagee in
13    possession shall notify all known occupants of dwelling
14    units of the mortgaged real estate that the mortgagee has
15    taken possession of the mortgaged real estate. The notice
16    shall be in writing and shall:
17            (i) identify the occupant being served by the name
18        known to the mortgagee in possession;
19            (ii) inform the occupant that the mortgaged real
20        estate at which the dwelling unit is located is the
21        subject of a foreclosure action and that control of the
22        mortgaged real estate has changed;
23            (iii) provide the name, address, and telephone
24        number of the individual or entity whom occupants may
25        contact with concerns about the mortgaged real estate
26        or to request repairs of that property;

 

 

09800SB1602sam001- 31 -LRB098 09678 HEP 41039 a

1            (iv) include the following language, or language
2        that is substantially similar: "This is NOT a notice to
3        vacate the premises. You may wish to contact a lawyer
4        or your local legal aid or housing counseling agency to
5        discuss any rights that you may have."; and
6            (v) include the name of the case, the case number,
7        and the court where the foreclosure action is pending;
8        and .
9            (vi) provide instructions on the method of payment
10        of future rent, if applicable.
11        (3) The written notice required by item (2) of this
12    subsection (a-5) shall be served by delivering a copy
13    thereof to the known occupant, or by leaving the same with
14    some person of the age of 13 years or upwards, who is
15    residing on or in possession of the premises; or by sending
16    a copy of the notice to the known occupant by first-class
17    mail, addressed to the occupant by the name known to the
18    mortgagee in possession.
19        (4) In the event that a mortgagee in possession
20    ascertains the identity and address of an occupant of a
21    dwelling unit of the mortgaged real estate more than 21
22    days after being placed in possession of the mortgaged real
23    estate pursuant to Section 15-1703, the mortgagee in
24    possession shall provide the notice required by item (2) of
25    this subsection (a-5) within 7 days of ascertaining the
26    identity and address of the occupant.

 

 

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1        (5)(i) A mortgagee in possession who fails to comply
2    with items (1), (2), (3), and (4) of this subsection (a-5)
3    may not collect any rent due and owing from a known
4    occupant, or terminate a known occupant's tenancy for
5    non-payment of such rent, until the mortgagee in possession
6    has served the notice described in item (2) of this
7    subsection (a-5) upon the known occupant. After providing
8    such notice, the mortgagee in possession may collect any
9    and all rent accruing after service of the notice otherwise
10    due and owing the mortgagee in possession from the known
11    occupant and may terminate the known occupant's tenancy for
12    non-payment of such rent if the mortgagee in possession
13    otherwise has such right to terminate.
14        (ii) An occupant who previously paid rent for the
15    current rental period to the mortgagor, or other entity
16    with the authority to operate, manage, and conserve the
17    mortgaged real estate at the time of payment, shall not be
18    held liable for that rent by the mortgagee in possession,
19    and the occupant's tenancy shall not be terminated for
20    non-payment of rent for that rental period.
21        (6) Within 21 days of the order placing the mortgagee
22    in possession of the mortgaged real estate, the mortgagee
23    in possession shall post a written notice on the primary
24    entrance of each dwelling unit subject to the foreclosure
25    action that informs the occupants that the mortgagee in
26    possession is now operating and managing the mortgaged real

 

 

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1    estate. This notice shall:
2            (i) inform occupant that the dwelling unit is the
3        subject of a foreclosure action and that control of the
4        mortgaged real estate has changed;
5            (ii) include the following language: "This is NOT a
6        notice to vacate the premises."; and
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 the property; and .
11            (iv) provide instructions on the method of payment
12        of future rent, if applicable.
13        (7)(i) The provisions of item (5) of this subsection
14    (a-5) shall be the exclusive remedy for the failure of a
15    mortgagee in possession to provide notice to a known
16    occupant under this Section.
17        (ii) This Section shall not abrogate any right that a
18    mortgagee in possession may have to possession of the
19    mortgaged real estate and to maintain a proceeding against
20    an occupant of a dwelling unit for possession under Article
21    9 of this Code or subsection (h) of Section 15-1701.
22    (b) Fees and Expenses. A mortgagee in possession shall not
23be entitled to any fees for so acting, but shall be entitled to
24reimbursement for reasonable costs, expenses and third party
25management fees incurred in connection with such possession.
26(Source: P.A. 96-111, eff. 10-29-09.)
 

 

 

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1    (735 ILCS 5/15-1704)  (from Ch. 110, par. 15-1704)
2    Sec. 15-1704. Receivers.
3    (a) Receiver. Notwithstanding the provisions of
4subsections (b), (c) and (d) of Section 15-1701, and except as
5provided in Section 15-1702, upon request of any party and a
6showing of good cause, the court shall appoint a receiver for
7the mortgaged real estate.
8    (b) Powers. A receiver appointed pursuant to this Article
9shall have possession of the mortgaged real estate and other
10property subject to the mortgage during the foreclosure, shall
11have full power and authority to operate, manage and conserve
12such property, and shall have all the usual powers of receivers
13in like cases. Without limiting the foregoing, a receiver shall
14have the power and authority to:
15        (1) secure tenants and execute leases for the real
16    estate, the duration and terms of which are reasonable and
17    customary for the type of use involved, and such leases
18    shall have the same priority as if made by the owner of the
19    real estate; but, unless approved by the Court, the
20    receiver shall not execute oil, gas or other mineral
21    leases, or (even if otherwise allowed by law) leases
22    extending beyond the time of the receiver's possession;
23    provided, however, with respect to residential real estate
24    leased by the receiver, nothing in this Section shall
25    affect the legal rights of any lessee with respect to the

 

 

09800SB1602sam001- 35 -LRB098 09678 HEP 41039 a

1    safety and habitability of the residential real estate;
2        (2) collect the rents, issues and profits from the
3    mortgaged real estate;
4        (3) insure the mortgaged real estate against loss by
5    fire or other casualty;
6        (4) employ counsel, custodians, janitors and other
7    help; and
8        (5) pay taxes which may have been or may be levied
9    against the mortgaged real estate.
10    (c) Duties. A receiver appointed pursuant to this Article
11must manage the mortgaged real estate as would a prudent
12person, taking into account the effect of the receiver's
13management on the interest of the mortgagor. A receiver may,
14without an order of the court, delegate managerial functions to
15a person in the business of managing real estate of the kind
16involved who is financially responsible, not related to the
17mortgagee or receiver and prudently selected. However, the
18receiver shall remain responsible to the mortgagor or other
19persons for the acts or omissions of such management agent.
20When fees are paid to such a management agent, the receiver's
21fees may be adjusted to the extent the court deems appropriate.
22In managing the mortgaged real estate and other property
23subject to the mortgage, a receiver or receiver's delegate, to
24the extent the receiver receives sufficient receipts from the
25mortgaged real estate, such other property or other sources,
26except to the extent ordered otherwise by the court:

 

 

09800SB1602sam001- 36 -LRB098 09678 HEP 41039 a

1        (1) shall maintain the existing casualty and liability
2    insurance required in accordance with the mortgage or
3    applicable to the real estate and other property subject to
4    the mortgage at the time the receiver took possession;
5        (2) shall use reasonable efforts to maintain the real
6    estate and other property subject to the mortgage in at
7    least as good condition as existed at the time the receiver
8    took possession, excepting reasonable wear and tear and
9    damage by any casualty;
10        (2.5) shall accept all rental payments from an occupant
11    of the mortgaged property, and any payments from a third
12    party or any rental assistance program in support of an
13    occupant's housing;
14        (3) shall apply receipts to payment of ordinary
15    operating expenses, including royalties, rents and other
16    expenses of management;
17        (4) shall pay any shared or common expense assessments
18    due to any association of owners of interests in real
19    estate to the extent that such assessments are or may
20    become a lien against the mortgaged real estate;
21        (5) may pay the amounts due under any mortgage if the
22    mortgagee thereof is not a party in the foreclosure;
23        (6) may carry such additional casualty and liability
24    insurance as is reasonably available and reasonable as to
25    amounts and risks covered;
26        (7) may make other repairs and improvements necessary

 

 

09800SB1602sam001- 37 -LRB098 09678 HEP 41039 a

1    to comply with building, housing, and other similar codes
2    or with existing contractual obligations affecting the
3    mortgaged real estate;
4        (8) may hold receipts as reserves reasonably required
5    for the foregoing purposes; and
6        (9) may take such other actions as may be reasonably
7    necessary to conserve the mortgaged real estate and other
8    property subject to the mortgage, or as otherwise
9    authorized by the court.
10    (d) Allocation of Receipts. Receipts received from
11operation of the real estate and other property subject to the
12mortgage by the receiver shall be applied in the following
13order of priority.
14        (1) to reimbursement of the receiver for all reasonable
15    costs and expenses incurred by the receiver or the
16    receiver's delegates;
17        (2) to payment of insurance premiums authorized in
18    paragraph (1) of subsection (c) of Section 15-1704;
19        (3) to payment of the receiver's delegates of any
20    reasonable management fees for managing real estate of the
21    type involved;
22        (4) to payment of receiver's fees allowed by the court;
23        (5) to payment of expenses authorized in paragraphs
24    (2), (3) and (4) of subsection (c) of Section 15-1704;
25        (6) to payment of amounts authorized in paragraph (5)
26    of subsection (c) of Section 15-1704;

 

 

09800SB1602sam001- 38 -LRB098 09678 HEP 41039 a

1        (7) to payment of expenses authorized in paragraphs (6)
2    and (7) of subsection (c) of Section 15-1704; and
3        (8) the balance, if any, shall be held or disbursed as
4    ordered by the court.
5    (e) Non-Liability for Allocations. A receiver shall in no
6event be liable to any person for the allocation of, or failure
7to allocate, receipts to possible expenditures within the same
8priority category.
9    (f) Notice to occupants.
10        (1) Following an order appointing a receiver pursuant
11    to Section 15-1704, but no later than 21 days after the
12    entry of such order, the appointed receiver shall make a
13    good faith effort to ascertain the identities and addresses
14    of all occupants of dwelling units of the mortgaged real
15    estate.
16        (2) Following an order appointing a receiver pursuant
17    to Section 15-1704, but no later than 21 days after the
18    entry of such order, the appointed receiver shall notify
19    all known occupants of dwelling units of the mortgaged real
20    estate that the receiver has been appointed receiver of the
21    mortgaged real estate. Such notice shall be in writing and
22    shall:
23            (i) identify the occupant being served by the name
24        known to the receiver;
25            (ii) inform the occupant that the mortgaged real
26        estate at which the dwelling unit is located is the

 

 

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1        subject of a foreclosure action and that control of the
2        mortgaged real estate has changed;
3            (iii) provide the name, address, and telephone
4        number of the individual or entity whom occupants may
5        contact with concerns about the mortgaged real estate
6        or to request repairs of that property;
7            (iv) include the following language, or language
8        that is substantially similar: "This is NOT a notice to
9        vacate the premises. You may wish to contact a lawyer
10        or your local legal aid or housing counseling agency to
11        discuss any rights that you may have."; and
12            (v) include the name of the case, the case number,
13        and the court where the foreclosure action is pending;
14        and .
15            (vi) provide instructions on the method of payment
16        of future rent, if applicable.
17        (3) The written notice required by item (2) of this
18    subsection (f) shall be served by delivering a copy thereof
19    to the known occupant, or by leaving the same with some
20    person of the age of 13 years or upwards, who is residing
21    on or in possession of the premises; or by sending a copy
22    of the notice to the known occupant by first-class mail,
23    addressed to the occupant by the name known to the
24    receiver.
25        (4) In the event that a receiver ascertains the
26    identity and address of an occupant of a dwelling unit of

 

 

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1    the mortgaged real estate more than 21 days after
2    appointment pursuant to Section 15-1704, the receiver
3    shall provide the notice required by item (2) of this
4    subsection (f) within 7 days of ascertaining the identity
5    and address of the occupant.
6        (5)(i) A receiver who fails to comply with items (1),
7    (2), (3), and (4) of this subsection (f) may not collect
8    any rent due and owing from a known occupant, or terminate
9    a known occupant's tenancy for non-payment of such rent,
10    until the receiver has served the notice described in item
11    (2) of this subsection (f) upon the known occupant. After
12    providing such notice, the receiver may collect any and all
13    rent accruing after service of the notice otherwise due and
14    owing the receiver from the known occupant and may
15    terminate the known occupant's tenancy for non-payment of
16    such rent if the receiver 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 receiver, and the
23    occupant's tenancy shall not be terminated for non-payment
24    of rent for that rental period.
25        (6) Within 21 days of appointment, the receiver shall
26    post a written notice on the primary entrance of each

 

 

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1    dwelling unit subject to the foreclosure action that
2    informs occupants that the receiver has been appointed to
3    operate and manage the property. This notice shall:
4            (i) inform occupant that the dwelling unit is the
5        subject of a foreclosure action and that control of the
6        mortgaged real estate has changed;
7            (ii) include the following language: "This is NOT a
8        notice to vacate the premises."; and
9            (iii) provide the name, address, and telephone
10        number of the individual or entity whom occupants may
11        contact with concerns about the mortgaged real estate
12        or to request repairs of the property; and .
13            (iv) provide instructions on the method of payment
14        of future rent, if applicable.
15        (7)(i) The provisions of item (5) of this subsection
16    (f) shall be the exclusive remedy for the failure of a
17    receiver to provide notice to a known occupant under this
18    Section.
19        (ii) This Section shall not abrogate any right that a
20    receiver may have to possession of the mortgaged real
21    estate and to maintain a proceeding against an occupant of
22    a dwelling unit for possession under Article 9 of this Code
23    or subsection (h) of Section 15-1701.
24    (g) Increase of rents. Notwithstanding any other provision
25of this Article, a receiver shall not charge an occupant of the
26mortgaged real estate a rental amount above that which the

 

 

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1occupant had been paying for use and occupancy of the mortgaged
2real estate prior to the appointment of a receiver without
3leave of court. The court may allow an increase of rent if,
4upon motion by the receiver, the court finds by a preponderance
5of the evidence, that the increase of rent is necessary to
6operate, manage, and conserve the mortgaged real estate
7pursuant to this Section. A list of the current rents for each
8unit in the mortgaged real estate, and a list of the proposed
9rent increase for each of those units, must be attached to a
10motion for a rent increase under this subsection (g). All
11occupants of the mortgaged real estate who may be affected by
12the motion for a rent increase, if not otherwise entitled to
13notice, shall be notified in writing of the nature of the
14motion, the date and time of the motion, and the court where
15the motion will be heard. Such notice shall be by personal
16service or first-class mail. In the event that the receiver and
17an occupant of a dwelling unit agree to a rent increase for
18that dwelling unit, the receiver is excused from the
19requirements of this subsection (g) as to that dwelling unit.
20Nothing in this subsection (g) shall alter the terms of any
21lease agreement.
22    (h) Removal. The court may remove a receiver upon a showing
23of good cause, in which case a new receiver may be appointed in
24accordance with subsection (b) of Section 15-1702 and
25subsection (a) of Section 15-1704.
26(Source: P.A. 96-111, eff. 10-29-09.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".