Full Text of SB0138 101st General Assembly
SB0138eng 101ST 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 Section 15-1401.1 as follows: | 6 | | (735 ILCS 5/15-1401.1) | 7 | | Sec. 15-1401.1. Short sale in foreclosure. | 8 | | (a) As used in For purposes of this Section : , | 9 | | "Certified community development financial institution" | 10 | | means a community development financial institution that is | 11 | | certified by the Community Development Financial Institutions | 12 | | Fund in the U.S. Department of Treasury under 12 U.S.C. 4701 et | 13 | | seq. | 14 | | " Short short sale" means the sale of real
estate that is | 15 | | subject to a mortgage for an amount that is less
than the | 16 | | amount owed to the mortgagee on the outstanding
mortgage note. | 17 | | "Residential property" means real property on which there | 18 | | is a dwelling unit with accommodations for 4 or fewer separate | 19 | | households and occupied, or to be occupied, in whole or in | 20 | | part, by the mortgagor; however: | 21 | | (i) "residential property" is limited to the primary | 22 | | residence of a person; | 23 | | (ii) "residential property" does not include an |
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| 1 | | investment property or residence other than a primary | 2 | | residence; and | 3 | | (iii) "residential property" does not include | 4 | | residential property taken in whole or in part as | 5 | | collateral for a commercial loan. | 6 | | (b) In a foreclosure of residential real estate, if (i) the
| 7 | | mortgagor presents to the mortgagee a bona fide written offer | 8 | | from a
third party to purchase the property that is the subject | 9 | | of the
foreclosure proceeding, (ii) the written offer to | 10 | | purchase is
for an amount which constitutes a short sale of the | 11 | | property,
and (iii) the mortgagor makes a written request to | 12 | | the
mortgagee to approve the sale on the terms of the offer to
| 13 | | purchase, the mortgagee must respond to the mortgagor within 90
| 14 | | days after receipt of the written offer and written request. | 15 | | (c) The mortgagee shall determine whether to accept the | 16 | | mortgagor's short sale offer. Failure to accept the offer shall | 17 | | not impair or abrogate in any way the rights of the mortgagee | 18 | | or affect the status of the foreclosure proceedings. The 90-day | 19 | | period shall not operate as a stay of the proceedings.
| 20 | | (d) If an offer to purchase either a mortgage or | 21 | | residential property is made by an entity with a tax-exempt | 22 | | filing status under Section 501(c)(3) of the Internal Revenue | 23 | | Code for the purpose of reselling that mortgage or residential | 24 | | property to the mortgagor, and financing for the repurchase | 25 | | will be provided by a certified community development financial | 26 | | institution, an affidavit, statement, agreement, or addendum |
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| 1 | | limiting ownership or occupancy of the residential property by | 2 | | the mortgagor shall not provide a basis to avoid a sale or | 3 | | transfer, nor is it enforceable against the acquiring entity or | 4 | | any real estate broker, mortgagor, or settlement agent named in | 5 | | the affidavit, statement, agreement, or addendum. At the time | 6 | | of the offer, the following disclosures shall be made to the | 7 | | mortgagee by the mortgagor in connection with any purchase or | 8 | | sale under this subsection: (i) the entity seeking to purchase | 9 | | shall disclose its tax-exempt status; (ii) the entity that will | 10 | | finance the sale following the purchase shall disclose its | 11 | | status as a certified community development financial | 12 | | institution; and (iii) the disclosure shall state whether the | 13 | | residential property is to be sold back to the mortgagor. Upon | 14 | | request by the mortgagee, a certified community development | 15 | | financial institution shall provide documentation evidencing | 16 | | its current certification status. Nothing in this subsection | 17 | | shall impair, abrogate, or abridge in any manner the rights of | 18 | | the mortgagee pursuant to subsection (c) to accept or reject an | 19 | | offer to purchase either a mortgage or residential property, | 20 | | nor shall it give rise to a cause of action. | 21 | | (Source: P.A. 97-666, eff. 1-13-12.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
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