(b-3) Hearing to confirm sale of abandoned residential property. Upon motion and notice by first-class mail to the last known address of the mortgagor, which motion shall be made prior to the sale and heard by the court at the earliest practicable time after conclusion of the sale, and upon the posting at the property address of the notice required by paragraph (2) of subsection (l) of Section 15-1505.8, the court shall enter an order confirming the sale of the abandoned residential property, unless the court finds that a reason set forth in items (i) through (iv) of subsection (b) of this Section exists for not approving the sale, or an order is entered pursuant to subsection (h) of Section 15-1505.8. The confirmation order also may address the matters identified in items (1) through (3) of subsection (b) of this Section. The notice required under subsection (b-5) of this Section shall not be required.
(b-5) Notice with respect to residential real estate. With respect to residential real estate, the notice required under subsection (b) of this Section shall be sent to the mortgagor even if the mortgagor has previously been held in default. In the event the mortgagor has filed an appearance, the notice shall be sent to the address indicated on the appearance. In all other cases, the notice shall be sent to the mortgagor at the common address of the foreclosed property. The notice shall be sent by first class mail. Unless the right to possession has been previously terminated by the court, the notice shall include the following language in 12-point boldface capitalized type:
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE ILLINOIS MORTGAGE FORECLOSURE LAW. (b-10) Notice of confirmation order sent to municipality or county. A copy of the confirmation order required under subsection (b) shall be sent to the municipality in which the foreclosed property is located, or to the county within the boundary of which the foreclosed property is located if the foreclosed property is located in an unincorporated territory. A municipality or county must clearly publish on its website a single address to which a copy of the order shall be sent. If a municipality or county does not maintain a website, then the municipality or county must publicly post in its main office a single address to which a copy of the order shall be sent. In the event that a municipality or county has not complied with the publication requirement in this subsection (b-10), then a copy of the order shall be sent by first class mail, postage prepaid, to the chairperson of the county board or county clerk in the case of a county, to the mayor or city clerk in the case of a city, to the president of the board of trustees or village clerk in the case of a village, or to the president or town clerk in the case of a town.
(b-15) Notice of confirmation order sent to known insurers. With respect to residential real estate, the party filing the complaint shall send a copy of the confirmation order required under subsection (b) by first class mail, postage prepaid, to the last known property insurer of the foreclosed property. Failure to send or receive a copy of the order shall not impair or abrogate in any way the rights of the mortgagee or purchaser or affect the status of the foreclosure proceedings.
(c) Failure to Give Notice. If any sale is held without compliance with
subsection (c) of Section 15-1507 of this Article, any party entitled to
the notice provided for in paragraph (3) of that subsection
(c) who was not so notified may, by motion supported by affidavit
made prior to confirmation of such sale, ask the court which entered the
judgment to set aside the sale. Any such party shall guarantee or secure by bond a bid equal to the successful bid at the prior sale, unless the party seeking to set aside the sale is the mortgagor, the real estate sold at the sale is residential real estate, and the mortgagor occupies the residential real estate at the time the motion is filed. In that event, no guarantee or bond shall be required of the mortgagor. Any
subsequent sale is subject to the same notice requirement as the original sale.
(d) Validity of Sale. Except as provided in subsection (c) of Section
15-1508, no sale under this Article shall be held invalid or be set aside
because of any defect in the notice thereof or in the publication of the
same, or in the proceedings of the officer conducting the sale, except upon
good cause shown in a hearing pursuant to subsection (b) of Section
15-1508. At any time after a sale has occurred, any party entitled to
notice under paragraph (3) of subsection (c) of Section 15-1507 may recover
from the mortgagee any damages caused by the mortgagee's failure to comply
with such paragraph (3). Any party who recovers damages in a judicial
proceeding brought under this subsection may also recover from the
mortgagee the reasonable expenses of litigation, including reasonable attorney's fees.
(d-5) Making Home Affordable Program. The court that entered the judgment shall set aside a sale held pursuant to Section 15-1507, upon motion of the mortgagor at any time prior to the confirmation of the sale, if the mortgagor proves by a preponderance of the evidence that (i) the mortgagor has applied for assistance under the Making Home Affordable Program established by the United States Department of the Treasury pursuant to the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, and (ii) the mortgaged real estate was sold in material violation of the program's requirements for proceeding to a judicial sale. The provisions of this subsection (d-5) are operative and, except for this sentence, shall become inoperative on January 1, 2018 for all actions filed under this Article after December 31, 2017, in which the mortgagor did not apply for assistance under the Making Home Affordable Program on or before December 31, 2016. The changes to this subsection (d-5) by this amendatory Act of the 99th General Assembly apply to all cases pending and filed on or after the effective date of this amendatory Act of the 99th General Assembly.
(e) Deficiency Judgment. In any order confirming a sale pursuant to the
judgment of foreclosure, the court shall also enter a personal judgment
for deficiency against any party (i) if otherwise authorized and (ii) to
the extent requested in the complaint and proven upon presentation of the
report of sale in accordance with Section 15-1508. Except as otherwise provided
in this Article, a judgment may be entered for any balance of money that
may be found due to the plaintiff, over and above the proceeds of the sale
or sales, and enforcement may be had for the collection of such balance,
the same as when the judgment is solely for the payment of money. Such
judgment may be entered, or enforcement had,
only in cases where personal service has been had upon the
persons personally liable for the mortgage indebtedness, unless they have
entered their appearance in the foreclosure action.
(f) Satisfaction. Upon confirmation of the sale, the
judgment stands satisfied to the extent of the sale price less expenses and
costs. If the order confirming the sale includes a deficiency judgment, the
judgment shall become a lien in the manner of any other
judgment for the payment of money.
(g) The order confirming the sale shall include, notwithstanding any
previous orders awarding possession during the pendency of the foreclosure, an
award to the purchaser of possession of the mortgaged real estate, as of the
date 30 days after the entry of the order, against the
parties to the foreclosure whose interests have been terminated.
An eviction order authorizing the removal of a person from possession
of the mortgaged real estate shall be entered and enforced only against those
persons personally
named as individuals in the complaint or the petition under subsection (h)
of Section 15-1701. No eviction order issued under this Section shall be entered against a lessee with a bona fide lease of a dwelling unit in residential real estate in foreclosure, whether or not the lessee has been made a party in the foreclosure. An order shall
not be entered and enforced against any person who is only generically
described as an
unknown owner or nonrecord claimant or by another generic designation in the
complaint.
Notwithstanding the preceding paragraph, the failure to personally
name,
include, or seek an eviction order against a person in the
confirmation order shall not abrogate any right that the purchaser may have to
possession of the mortgaged real estate and to maintain an eviction proceeding under Article IX of this Code or, if applicable, under subsection (h) of Section 15-1701;
and eviction of a person
who (1) has not been personally named as a party to the
foreclosure and (2) has not been provided an opportunity to be heard in the
foreclosure proceeding may be sought only by maintaining a
proceeding under Article IX of this
Code or, if applicable, under subsection (h) of Section 15-1701.
(h) With respect to mortgaged real estate containing 5 or more dwelling units, the order confirming the sale shall also provide that (i) the mortgagor shall transfer to the purchaser the security deposits, if any, that the mortgagor received to secure payment of rent or to compensate for damage to the mortgaged real estate from any current occupant of a dwelling unit of the mortgaged real estate, as well as any statutory interest that has not been paid to the occupant, and (ii) the mortgagor shall provide an accounting of the security deposits that are transferred, including the name and address of each occupant for whom the mortgagor holds the deposit and the amount of the deposit and any statutory interest.
(Source: P.A. 102-86, eff. 7-9-21.) |
