HB5019 EnrolledLRB097 19428 DRJ 64681 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Purpose; intent.
5    (a) Public Act 97-849, "AN ACT concerning business", was
6approved July 25, 2012. Public Act 97-849 contained an
7effective date Section providing that the Act takes effect on
8January 1, 2013.
9    (b) The purpose of this Act is to delay the effective date
10of the amendatory provisions contained in Sections 10, 15, and
1125 of Public Act 97-849 until the effective date of the federal
12regulations implementing Sections 1431, 1432, and 1433 of the
13federal Dodd-Frank Wall Street Reform and Consumer Protection
14Act.
15    (c) This Act is not intended to repeal, even temporarily,
16any statute that was changed by Sections 10, 15, and 25 of
17Public Act 97-849; rather, it is the intent of the General
18Assembly to render the changes to those statutes by Public Act
1997-849 inoperative until the effective date of the federal
20regulations implementing Sections 1431, 1432, and 1433 of the
21federal Dodd-Frank Wall Street Reform and Consumer Protection
22Act.
23    (d) This Act also makes substantive changes to the Code of
24Civil Procedure unrelated to Public Act 97-849, specifically by

 

 

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1amending certain provisions of Section 15-1508 concerning the
2Making Home Affordable Program.
 
3    Section 5. The Code of Civil Procedure is amended by
4changing Section 15-1508 as follows:
 
5    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
6    Sec. 15-1508. Report of Sale and Confirmation of Sale.
7    (a) Report. The person conducting the sale shall promptly
8make a report to the court, which report shall include a copy
9of all receipts and, if any, certificate of sale.
10    (b) Hearing. Upon motion and notice in accordance with
11court rules applicable to motions generally, which motion shall
12not be made prior to sale, the court shall conduct a hearing to
13confirm the sale. Unless the court finds that (i) a notice
14required in accordance with subsection (c) of Section 15-1507
15was not given, (ii) the terms of sale were unconscionable,
16(iii) the sale was conducted fraudulently, or (iv) justice was
17otherwise not done, the court shall then enter an order
18confirming the sale. The confirmation order shall include a
19name, address, and telephone number of the holder of the
20certificate of sale or deed issued pursuant to that certificate
21or, if no certificate or deed was issued, the purchaser, whom a
22municipality or county may contact with concerns about the real
23estate. The confirmation order may also:
24        (1) approve the mortgagee's fees and costs arising

 

 

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1    between the entry of the judgment of foreclosure and the
2    confirmation hearing, those costs and fees to be allowable
3    to the same extent as provided in the note and mortgage and
4    in Section 15-1504;
5        (2) provide for a personal judgment against any party
6    for a deficiency; and
7        (3) determine the priority of the judgments of parties
8    who deferred proving the priority pursuant to subsection
9    (h) of Section 15-1506, but the court shall not defer
10    confirming the sale pending the determination of such
11    priority.
12    (b-5) Notice with respect to residential real estate. With
13respect to residential real estate, the notice required under
14subsection (b) of this Section shall be sent to the mortgagor
15even if the mortgagor has previously been held in default. In
16the event the mortgagor has filed an appearance, the notice
17shall be sent to the address indicated on the appearance. In
18all other cases, the notice shall be sent to the mortgagor at
19the common address of the foreclosed property. The notice shall
20be sent by first class mail. Unless the right to possession has
21been previously terminated by the court, the notice shall
22include the following language in 12-point boldface
23capitalized type:
24
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
25
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
26
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE

 

 

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1
ILLINOIS MORTGAGE FORECLOSURE LAW.
2    (b-10) Notice of confirmation order sent to municipality or
3county. A copy of the confirmation order required under
4subsection (b) shall be sent to the municipality in which the
5foreclosed property is located, or to the county within the
6boundary of which the foreclosed property is located if the
7foreclosed property is located in an unincorporated territory.
8A municipality or county must clearly publish on its website a
9single address to which such notice shall be sent. If a
10municipality or county does not maintain a website, then the
11municipality or county must publicly post in its main office a
12single address to which such notice shall be sent. In the event
13that a municipality or county has not complied with the
14publication requirement in this subsection (b-10), then such
15notice to the municipality or county shall be provided pursuant
16to Section 2-211 of the Code of Civil Procedure.
17    (c) Failure to Give Notice. If any sale is held without
18compliance with subsection (c) of Section 15-1507 of this
19Article, any party entitled to the notice provided for in
20paragraph (3) of that subsection (c) who was not so notified
21may, by motion supported by affidavit made prior to
22confirmation of such sale, ask the court which entered the
23judgment to set aside the sale. Any such party shall guarantee
24or secure by bond a bid equal to the successful bid at the
25prior sale, unless the party seeking to set aside the sale is
26the mortgagor, the real estate sold at the sale is residential

 

 

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1real estate, and the mortgagor occupies the residential real
2estate at the time the motion is filed. In that event, no
3guarantee or bond shall be required of the mortgagor. Any
4subsequent sale is subject to the same notice requirement as
5the original sale.
6    (d) Validity of Sale. Except as provided in subsection (c)
7of Section 15-1508, no sale under this Article shall be held
8invalid or be set aside because of any defect in the notice
9thereof or in the publication of the same, or in the
10proceedings of the officer conducting the sale, except upon
11good cause shown in a hearing pursuant to subsection (b) of
12Section 15-1508. At any time after a sale has occurred, any
13party entitled to notice under paragraph (3) of subsection (c)
14of Section 15-1507 may recover from the mortgagee any damages
15caused by the mortgagee's failure to comply with such paragraph
16(3). Any party who recovers damages in a judicial proceeding
17brought under this subsection may also recover from the
18mortgagee the reasonable expenses of litigation, including
19reasonable attorney's fees.
20    (d-5) Making Home Affordable Program. The court that
21entered the judgment shall set aside a sale held pursuant to
22Section 15-1507, upon motion of the mortgagor at any time prior
23to the confirmation of the sale, if the mortgagor proves by a
24preponderance of the evidence that (i) the mortgagor has
25applied for assistance under the Making Home Affordable Program
26established by the United States Department of the Treasury

 

 

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1pursuant to the Emergency Economic Stabilization Act of 2008,
2as amended by the American Recovery and Reinvestment Act of
32009, and (ii) the mortgaged real estate was sold in material
4violation of the program's requirements for proceeding to a
5judicial sale. The provisions of this subsection (d-5), except
6for this sentence, shall become inoperative on January 1, 2014
72013 for all actions filed under this Article after December
831, 2013 2012, in which the mortgagor did not apply for
9assistance under the Making Home Affordable Program on or
10before December 31, 2013 2012.
11    (e) Deficiency Judgment. In any order confirming a sale
12pursuant to the judgment of foreclosure, the court shall also
13enter a personal judgment for deficiency against any party (i)
14if otherwise authorized and (ii) to the extent requested in the
15complaint and proven upon presentation of the report of sale in
16accordance with Section 15-1508. Except as otherwise provided
17in this Article, a judgment may be entered for any balance of
18money that may be found due to the plaintiff, over and above
19the proceeds of the sale or sales, and enforcement may be had
20for the collection of such balance, the same as when the
21judgment is solely for the payment of money. Such judgment may
22be entered, or enforcement had, only in cases where personal
23service has been had upon the persons personally liable for the
24mortgage indebtedness, unless they have entered their
25appearance in the foreclosure action.
26    (f) Satisfaction. Upon confirmation of the sale, the

 

 

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1judgment stands satisfied to the extent of the sale price less
2expenses and costs. If the order confirming the sale includes a
3deficiency judgment, the judgment shall become a lien in the
4manner of any other judgment for the payment of money.
5    (g) The order confirming the sale shall include,
6notwithstanding any previous orders awarding possession during
7the pendency of the foreclosure, an award to the purchaser of
8possession of the mortgaged real estate, as of the date 30 days
9after the entry of the order, against the parties to the
10foreclosure whose interests have been terminated.
11    An order of possession authorizing the removal of a person
12from possession of the mortgaged real estate shall be entered
13and enforced only against those persons personally named as
14individuals in the complaint or the petition under subsection
15(h) of Section 15-1701 and in the order of possession and shall
16not be entered and enforced against any person who is only
17generically described as an unknown owner or nonrecord claimant
18or by another generic designation in the complaint.
19    Notwithstanding the preceding paragraph, the failure to
20personally name, include, or seek an award of possession of the
21mortgaged real estate against a person in the confirmation
22order shall not abrogate any right that the purchaser may have
23to possession of the mortgaged real estate and to maintain a
24proceeding against that person for possession under Article 9
25of this Code or subsection (h) of Section 15-1701; and
26possession against a person who (1) has not been personally

 

 

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1named as a party to the foreclosure and (2) has not been
2provided an opportunity to be heard in the foreclosure
3proceeding may be sought only by maintaining a proceeding under
4Article 9 of this Code or subsection (h) of Section 15-1701.
5    (h) With respect to mortgaged real estate containing 5 or
6more dwelling units, the order confirming the sale shall also
7provide that (i) the mortgagor shall transfer to the purchaser
8the security deposits, if any, that the mortgagor received to
9secure payment of rent or to compensate for damage to the
10mortgaged real estate from any current occupant of a dwelling
11unit of the mortgaged real estate, as well as any statutory
12interest that has not been paid to the occupant, and (ii) the
13mortgagor shall provide an accounting of the security deposits
14that are transferred, including the name and address of each
15occupant for whom the mortgagor holds the deposit and the
16amount of the deposit and any statutory interest.
17(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
1896-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
198-26-11.)
 
20    Section 10. "AN ACT concerning business", approved July 25,
212012 (Public Act 97-849), is amended by changing Section 99 as
22follows:
 
23    (P.A. 97-849, Sec. 99)
24    Sec. 99. Effective date. This Act takes effect on January

 

 

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11, 2013, except that Sections 10, 15, and 25 take effect on the
2effective date of the federal regulations implementing
3Sections 1431, 1432, and 1433 of the federal Dodd-Frank Wall
4Street Reform and Consumer Protection Act.
5(Source: P.A. 97-849.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.