Full Text of SB0255 102nd General Assembly
SB0255enr 102ND 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 15-1508 as follows: | 6 | | (735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508) | 7 | | Sec. 15-1508. Report of sale and confirmation of sale. | 8 | | (a) Report. The person conducting the sale shall promptly | 9 | | make a report to
the court, which report shall include a copy | 10 | | of all receipts and, if any,
certificate of sale. | 11 | | (b) Hearing. Upon motion and notice in accordance with | 12 | | court rules
applicable to motions generally, which motion | 13 | | shall not be made prior to
sale, the court shall conduct a | 14 | | hearing to
confirm the sale. Unless the court finds that (i) a | 15 | | notice required in
accordance with subsection (c) of Section | 16 | | 15-1507 was not given, (ii) the
terms of sale were | 17 | | unconscionable, (iii) the sale was conducted
fraudulently, or | 18 | | (iv) justice was otherwise not done, the court shall
then | 19 | | enter an order confirming the sale. The confirmation order | 20 | | shall include a name, address, and telephone number of the | 21 | | holder of the certificate of sale or deed issued pursuant to | 22 | | that certificate or, if no certificate or deed was issued, the | 23 | | purchaser, whom a municipality or county may contact with |
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| 1 | | concerns about the real estate. The confirmation order may
| 2 | | also: | 3 | | (1) approve the mortgagee's fees and costs (i) arising | 4 | | between the entry of
the judgment of foreclosure and the | 5 | | confirmation hearing, and (ii) incurred on or after the | 6 | | date of execution of an affidavit under subsection (a) of | 7 | | Section 15-1506 and prior to the judgment but not included | 8 | | in the judgment, those costs and
fees to be allowable to | 9 | | the same extent as provided in the note and mortgage
and in | 10 | | Section 15-1504; | 11 | | (2) provide for a personal judgment against any party | 12 | | for a deficiency;
and | 13 | | (3) determine the priority of the judgments of parties | 14 | | who deferred proving
the priority pursuant to subsection | 15 | | (h) of Section 15-1506, but
the court shall not
defer | 16 | | confirming the sale pending the determination of such | 17 | | priority. | 18 | | (b-3) Hearing to confirm sale of abandoned residential | 19 | | property. Upon motion and notice by first-class mail to the | 20 | | last known address of the mortgagor, which motion shall be | 21 | | made prior to the sale and heard by the court at the earliest | 22 | | practicable time after conclusion of the sale, and upon the | 23 | | posting at the property address of the notice required by | 24 | | paragraph (2) of subsection (l) of Section 15-1505.8, the | 25 | | court shall enter an order confirming the sale of the | 26 | | abandoned residential property, unless the court finds that a |
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| 1 | | reason set forth in items (i) through (iv) of subsection (b) of | 2 | | this Section exists for not approving the sale, or an order is | 3 | | entered pursuant to subsection (h) of Section 15-1505.8. The | 4 | | confirmation order also may address the matters identified in | 5 | | items (1) through (3) of subsection (b) of this Section. The | 6 | | notice required under subsection (b-5) of this Section shall | 7 | | not be required. | 8 | | (b-5) Notice with respect to residential real estate. With | 9 | | respect to residential real estate, the notice required under | 10 | | subsection (b) of this Section shall be sent to the mortgagor | 11 | | even if the mortgagor has previously been held in default. In | 12 | | the event the mortgagor has filed an appearance, the notice | 13 | | shall be sent to the address indicated on the appearance. In | 14 | | all other cases, the notice shall be sent to the mortgagor at | 15 | | the common address of the foreclosed property. The notice | 16 | | shall be sent by first class mail. Unless the right to | 17 | | possession has been previously terminated by the court, the | 18 | | notice shall include the following language in 12-point | 19 | | boldface capitalized type: | 20 | | IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO | 21 | | REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | 22 | | POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | 23 | | ILLINOIS MORTGAGE FORECLOSURE LAW. | 24 | | (b-10) Notice of confirmation order sent to municipality | 25 | | or county. A copy of the confirmation order required under | 26 | | subsection (b) shall be sent to the municipality in which the |
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| 1 | | foreclosed property is located, or to the county within the | 2 | | boundary of which the foreclosed property is located if the | 3 | | foreclosed property is located in an unincorporated territory. | 4 | | A municipality or county must clearly publish on its website a | 5 | | single address to which a copy of the order shall be sent. If a | 6 | | municipality or county does not maintain a website, then the | 7 | | municipality or county must publicly post in its main office a | 8 | | single address to which a copy of the order shall be sent. In | 9 | | the event that a municipality or county has not complied with | 10 | | the publication requirement in this subsection (b-10), then a | 11 | | copy of the order shall be sent by first class mail, postage | 12 | | prepaid, to the chairperson of the county board or county | 13 | | clerk in the case of a county, to the mayor or city clerk in | 14 | | the case of a city, to the president of the board of trustees | 15 | | or village clerk in the case of a village, or to the president | 16 | | or town clerk in the case of a town. | 17 | | (b-15) Notice of confirmation order sent to known | 18 | | insurers. With respect to residential real estate, the party | 19 | | filing the complaint shall send a copy of the confirmation | 20 | | order required under subsection (b) by first class mail, | 21 | | postage prepaid, to the last known property insurer of the | 22 | | foreclosed property. Failure to send or receive a copy of the | 23 | | order shall not impair or abrogate in any way the rights of the | 24 | | mortgagee or purchaser or affect the status of the foreclosure | 25 | | proceedings. | 26 | | (c) Failure to Give Notice. If any sale is held without |
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| 1 | | compliance with
subsection (c) of Section 15-1507 of this | 2 | | Article, any party entitled to
the notice provided for in | 3 | | paragraph (3) of that subsection
(c) who was not so notified | 4 | | may, by motion supported by affidavit
made prior to | 5 | | confirmation of such sale, ask the court which entered the
| 6 | | judgment to set aside the sale. Any such party shall guarantee | 7 | | or secure by bond a bid equal to the successful bid at the | 8 | | prior sale, unless the party seeking to set aside the sale is | 9 | | the mortgagor, the real estate sold at the sale is residential | 10 | | real estate, and the mortgagor occupies the residential real | 11 | | estate at the time the motion is filed. In that event, no | 12 | | guarantee or bond shall be required of the mortgagor. Any
| 13 | | subsequent sale is subject to the same notice requirement as | 14 | | the original sale. | 15 | | (d) Validity of Sale. Except as provided in subsection (c) | 16 | | of Section
15-1508, no sale under this Article shall be held | 17 | | invalid or be set aside
because of any defect in the notice | 18 | | thereof or in the publication of the
same, or in the | 19 | | proceedings of the officer conducting the sale, except upon
| 20 | | good cause shown in a hearing pursuant to subsection (b) of | 21 | | Section
15-1508. At any time after a sale has occurred, any | 22 | | party entitled to
notice under paragraph (3) of subsection (c) | 23 | | of Section 15-1507 may recover
from the mortgagee any damages | 24 | | caused by the mortgagee's failure to comply
with such | 25 | | paragraph (3). Any party who recovers damages in a judicial
| 26 | | proceeding brought under this subsection may also recover from |
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| 1 | | the
mortgagee the reasonable expenses of litigation, including | 2 | | reasonable attorney's fees. | 3 | | (d-5) Making Home Affordable Program. The court that | 4 | | entered the judgment shall set aside a sale held pursuant to | 5 | | Section 15-1507, upon motion of the mortgagor at any time | 6 | | prior to the confirmation of the sale, if the mortgagor proves | 7 | | by a preponderance of the evidence that (i) the mortgagor has | 8 | | applied for assistance under the Making Home Affordable | 9 | | Program established by the United States Department of the | 10 | | Treasury pursuant to the Emergency Economic Stabilization Act | 11 | | of 2008, as amended by the American Recovery and Reinvestment | 12 | | Act of 2009, and (ii) the mortgaged real estate was sold in | 13 | | material violation of the program's requirements for | 14 | | proceeding to a judicial sale. The provisions of this | 15 | | subsection (d-5) are operative and, except for this sentence, | 16 | | shall become inoperative on January 1, 2018 for all actions | 17 | | filed under this Article after December 31, 2017, in which the | 18 | | mortgagor did not apply for assistance under the Making Home | 19 | | Affordable Program on or before December 31, 2016. The changes | 20 | | to this subsection (d-5) by this amendatory Act of the 99th | 21 | | General Assembly apply to all cases pending and filed on or | 22 | | after the effective date of this amendatory Act of the 99th | 23 | | General Assembly. | 24 | | (e) Deficiency Judgment. In any order confirming a sale | 25 | | pursuant to the
judgment of foreclosure, the court shall also | 26 | | enter a personal judgment
for deficiency against any party (i) |
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| 1 | | if otherwise authorized and (ii) to
the extent requested in | 2 | | the complaint and proven upon presentation of the
report of | 3 | | sale in accordance with Section 15-1508. Except as otherwise | 4 | | provided
in this Article, a judgment may be entered for any | 5 | | balance of money that
may be found due to the plaintiff, over | 6 | | and above the proceeds of the sale
or sales, and enforcement | 7 | | may be had for the collection of such balance,
the same as when | 8 | | the judgment is solely for the payment of money. Such
judgment | 9 | | may be entered, or enforcement had,
only in cases where | 10 | | personal service has been had upon the
persons personally | 11 | | liable for the mortgage indebtedness, unless they have
entered | 12 | | their appearance in the foreclosure action. | 13 | | (f) Satisfaction. Upon confirmation of the sale, the
| 14 | | judgment stands satisfied to the extent of the sale price less | 15 | | expenses and
costs. If the order confirming the sale includes | 16 | | a deficiency judgment, the
judgment shall become a lien in the | 17 | | manner of any other
judgment for the payment of money. | 18 | | (g) The order confirming the sale shall include, | 19 | | notwithstanding any
previous orders awarding possession during | 20 | | the pendency of the foreclosure, an
award to the purchaser of | 21 | | possession of the mortgaged real estate, as of the
date 30 days | 22 | | after the entry of the order, against the
parties to the | 23 | | foreclosure whose interests have been terminated. | 24 | | An eviction order authorizing the removal of a person from | 25 | | possession
of the mortgaged real estate shall be entered and | 26 | | enforced only against those
persons personally
named as |
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| 1 | | individuals in the complaint or the petition under subsection | 2 | | (h)
of Section 15-1701. No eviction order issued under this | 3 | | Section shall be entered against a lessee with a bona fide | 4 | | lease of a dwelling unit in residential real estate in | 5 | | foreclosure, whether or not the lessee has been made a party in | 6 | | the foreclosure. An order shall
not be entered and enforced | 7 | | against any person who is only generically
described as an
| 8 | | unknown owner or nonrecord claimant or by another generic | 9 | | designation in the
complaint. | 10 | | Notwithstanding the preceding paragraph, the failure to | 11 | | personally
name,
include, or seek an eviction order against a | 12 | | person in the
confirmation order shall not abrogate any right | 13 | | that the purchaser may have to
possession of the mortgaged | 14 | | real estate and to maintain an eviction proceeding under | 15 | | Article IX of this Code or, if applicable, under subsection | 16 | | (h) of Section 15-1701;
and eviction of a person
who (1) has | 17 | | not been personally named as a party to the
foreclosure and (2) | 18 | | has not been provided an opportunity to be heard in the
| 19 | | foreclosure proceeding may be sought only by maintaining a
| 20 | | proceeding under Article IX of this
Code or, if applicable, | 21 | | under subsection (h) of Section 15-1701. | 22 | | (h) With respect to mortgaged real estate containing 5 or | 23 | | more dwelling units, the order confirming the sale shall also | 24 | | provide that (i) the mortgagor shall transfer to the purchaser | 25 | | the security deposits, if any, that the mortgagor received to | 26 | | secure payment of rent or to compensate for damage to the |
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| 1 | | mortgaged real estate from any current occupant of a dwelling | 2 | | unit of the mortgaged real estate, as well as any statutory | 3 | | interest that has not been paid to the occupant, and (ii) the | 4 | | mortgagor shall provide an accounting of the security deposits | 5 | | that are transferred, including the name and address of each | 6 | | occupant for whom the mortgagor holds the deposit and the | 7 | | amount of the deposit and any statutory interest. | 8 | | (Source: P.A. 99-640, eff. 7-28-16; 100-173, eff. 1-1-18 .)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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