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| Public Act 099-0640 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Code of Civil Procedure is amended by | ||||
changing Section 15-1508 as follows: | ||||
(735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508) | ||||
Sec. 15-1508. Report of Sale and Confirmation of Sale. | ||||
(a) Report. The person conducting the sale shall promptly | ||||
make a report to
the court, which report shall include a copy | ||||
of all receipts and, if any,
certificate of sale. | ||||
(b) Hearing. Upon motion and notice in accordance with | ||||
court rules
applicable to motions generally, which motion shall | ||||
not be made prior to
sale, the court shall conduct a hearing to
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confirm the sale. Unless the court finds that (i) a notice | ||||
required in
accordance with subsection (c) of Section 15-1507 | ||||
was not given, (ii) the
terms of sale were unconscionable, | ||||
(iii) the sale was conducted
fraudulently, or (iv) justice was | ||||
otherwise not done, the court shall
then enter an order | ||||
confirming the sale. The confirmation order shall include a | ||||
name, address, and telephone number of the holder of the | ||||
certificate of sale or deed issued pursuant to that certificate | ||||
or, if no certificate or deed was issued, the purchaser, whom a | ||||
municipality or county may contact with concerns about the real | ||||
estate. The confirmation order may
also: | ||
(1) approve the mortgagee's fees and costs arising | ||
between the entry of
the judgment of foreclosure and the | ||
confirmation hearing, those costs and
fees to be allowable | ||
to the same extent as provided in the note and mortgage
and | ||
in Section 15-1504; | ||
(2) provide for a personal judgment against any party | ||
for a deficiency;
and | ||
(3) determine the priority of the judgments of parties | ||
who deferred proving
the priority pursuant to subsection | ||
(h) of Section 15-1506, but
the court shall not
defer | ||
confirming the sale pending the determination of such | ||
priority. | ||
(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
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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
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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
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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
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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 January 1, 2016 for all actions | ||
filed under this Article after December 31, 2017 December 31, | ||
2015, in which the mortgagor did not apply for assistance under | ||
the Making Home Affordable Program on or before December 31, | ||
2016 December 31, 2015. 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
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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
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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 order of possession 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 order of possession 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
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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 award of
possession of the | ||
mortgaged real estate 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 a | ||
proceeding against
that person for
possession under Article IX | ||
of this Code or, if applicable, under subsection (h) of Section | ||
15-1701;
and possession against 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. 97-333, eff. 8-12-11; 97-575, eff. 8-26-11; | ||
97-1159, eff. 1-29-13; 97-1164, eff. 6-1-13; 98-514, eff. | ||
11-19-13; 98-605, eff. 12-26-13.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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