Full Text of SB2730 98th General Assembly
SB2730 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2730 Introduced 1/28/2014, by Sen. John G. Mulroe SYNOPSIS AS INTRODUCED: |
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Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Defines "omitted subordinate interest". Provides that certain persons holding real estate encumbered by an omitted subordinate interest may file a strict foreclosure complaint consisting substantially of certain specified information. Provides that subject to the objection of the defendant, the court shall enter a judgment extinguishing the omitted subordinate interest by vesting absolute title to the mortgaged real estate in the plaintiff. Provides procedures by which a holder of an omitted subordinate interest may redeem the interest. Provides that a person whose omitted subordinate interest was not terminated by a prior foreclosure action does not have a right to file a strict foreclosure action. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Code of Civil Procedure is amended by adding | 5 | | Section 15-1603.5 as follows: | 6 | | (735 ILCS 5/15-1603.5 new) | 7 | | Sec. 15-1603.5. Strict foreclosure of an omitted | 8 | | subordinate interest. | 9 | | (a) As used in this Section, "omitted subordinate interest" | 10 | | means a recorded subordinate interest in real estate where: | 11 | | (1) the real estate is the subject of a foreclosure | 12 | | action under this Article; | 13 | | (2) a motion to confirm judicial sale under subsection | 14 | | (b) of Section 15-1508 is either pending or has been | 15 | | granted; | 16 | | (3) the interest attached to the real estate prior to | 17 | | the filing or recording of any notice in accordance with | 18 | | Sections 2-1901 and 15-1503; and | 19 | | (4) the interest was not named in the foreclosure | 20 | | complaint. | 21 | | (b) The holder of the certificate of sale or any person who | 22 | | acquired title pursuant to Section 15-1509 or any subsequent | 23 | | successor, assignee, transferee, or grantee who discovers an |
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| 1 | | omitted subordinate interest may file a strict foreclosure | 2 | | complaint. A complaint filed under this Section must include | 3 | | substantially the following: | 4 | | (1) the identity of the plaintiff and how the plaintiff | 5 | | acquired its interest in the property which is the subject | 6 | | of the strict foreclosure; | 7 | | (2) the docket number of the prior foreclosure action | 8 | | and the recording number and date of the mortgage that was | 9 | | previously foreclosed; | 10 | | (3) the legal description, common address, and parcel | 11 | | identification number of the real estate which is the | 12 | | subject of the strict foreclosure; | 13 | | (4) the recording number and a copy of the recorded | 14 | | omitted subordinate interest holder to be named as the | 15 | | defendant; | 16 | | (5) the amount of the successful bid at the foreclosure | 17 | | sale, as stated in the report of sale in the prior | 18 | | foreclosure action, with a copy of the report of sale | 19 | | attached to the complaint; | 20 | | (6) an allegation that, due to inadvertence or mistake | 21 | | or such other reason as may be applicable, the omitted | 22 | | subordinate interest was not made a party defendant in the | 23 | | prior foreclosure action and the omitted subordinate | 24 | | interest was not terminated by the judgment of foreclosure | 25 | | and when the subject property was sold by judicial sale; | 26 | | and |
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| 1 | | (7) a request for relief setting forth the redemption | 2 | | period as provided in this Section and identifying a | 3 | | contact by name and telephone number who will accept tender | 4 | | of the redemption amount. | 5 | | (c) Subject to the objection of the defendant, the court | 6 | | shall enter a judgment extinguishing the omitted subordinate | 7 | | interest by vesting absolute title to the mortgaged real estate | 8 | | in the plaintiff, free and clear of all claims and liens | 9 | | (except liens of the United States of America that cannot be | 10 | | foreclosed without judicial sale). | 11 | | (d) If the defendant objects to the entry of the judgment, | 12 | | the court, after a hearing, shall enter an order providing | 13 | | either: | 14 | | (1) that good cause for the objection has not been | 15 | | shown by the defendant and the defendant has not agreed to | 16 | | pay the amount required to redeem, in which event the court | 17 | | shall proceed to enter the judgment; or | 18 | | (2) that good cause for the objection has been shown by | 19 | | the defendant and the defendant has agreed to pay the | 20 | | amount required to redeem. | 21 | | (e) The amount required to redeem shall be the sum bid at | 22 | | the prior foreclosure sale plus any costs and fees incurred | 23 | | subsequent to the sale for the payment of taxes, preservation | 24 | | of the property, or any other actions taken by the holder of | 25 | | the certificate of sale to protect its interest in the | 26 | | property. |
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| 1 | | The order shall state that upon payment of the redemption | 2 | | amount within the redemption period, which shall extend 30 days | 3 | | after the entry of the order, title to the real estate shall | 4 | | vest in the defendant who redeems pursuant to this Section. | 5 | | Title to the defendant shall be free and clear of all claims | 6 | | and liens (except liens of the United States of America that | 7 | | cannot be foreclosed without judicial sale). If the defendant | 8 | | subject to the order has not paid the amount required to redeem | 9 | | within the 30-day redemption period, the interest of the | 10 | | defendant in the property is terminated. | 11 | | (f) A person whose omitted subordinate interest was not | 12 | | terminated by a prior foreclosure action does not have a right | 13 | | to file a strict foreclosure action.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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