Sen. Jacqueline Y. Collins

Filed: 10/22/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1045

2    AMENDMENT NO. ______. Amend Senate Bill 1045 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing 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
9make a report to the court, which report shall include a copy
10of all receipts and, if any, certificate of sale.
11    (b) Hearing. Upon motion and notice in accordance with
12court rules applicable to motions generally, which motion shall
13not be made prior to sale, the court shall conduct a hearing to
14confirm the sale. Unless the court finds that (i) a notice
15required in accordance with subsection (c) of Section 15-1507
16was not given, (ii) the terms of sale were unconscionable,

 

 

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1(iii) the sale was conducted fraudulently, or (iv) justice was
2otherwise not done, the court shall then enter an order
3confirming the sale. The confirmation order shall include a
4name, address, and telephone number of the holder of the
5certificate of sale or deed issued pursuant to that certificate
6or, if no certificate or deed was issued, the purchaser, whom a
7municipality or county may contact with concerns about the real
8estate. The confirmation order may also:
9        (1) approve the mortgagee's fees and costs arising
10    between the entry of the judgment of foreclosure and the
11    confirmation hearing, those costs and fees to be allowable
12    to the same extent as provided in the note and mortgage and
13    in Section 15-1504;
14        (2) provide for a personal judgment against any party
15    for a deficiency; and
16        (3) determine the priority of the judgments of parties
17    who deferred proving the priority pursuant to subsection
18    (h) of Section 15-1506, but the court shall not defer
19    confirming the sale pending the determination of such
20    priority.
21    (b-3) Hearing to confirm sale of abandoned residential
22property. Upon motion and notice by first-class mail to the
23last known address of the mortgagor, which motion shall be made
24prior to the sale and heard by the court at the earliest
25practicable time after conclusion of the sale, and upon the
26posting at the property address of the notice required by

 

 

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1paragraph (2) of subsection (l) of Section 15-1505.8, the court
2shall enter an order confirming the sale of the abandoned
3residential property, unless the court finds that a reason set
4forth in items (i) through (iv) of subsection (b) of this
5Section exists for not approving the sale, or an order is
6entered pursuant to subsection (h) of Section 15-1505.8. The
7confirmation order also may address the matters identified in
8items (1) through (3) of subsection (b) of this Section. The
9notice required under subsection (b-5) of this Section shall
10not be required.
11    (b-5) Notice with respect to residential real estate. With
12respect to residential real estate, the notice required under
13subsection (b) of this Section shall be sent to the mortgagor
14even if the mortgagor has previously been held in default. In
15the event the mortgagor has filed an appearance, the notice
16shall be sent to the address indicated on the appearance. In
17all other cases, the notice shall be sent to the mortgagor at
18the common address of the foreclosed property. The notice shall
19be sent by first class mail. Unless the right to possession has
20been previously terminated by the court, the notice shall
21include the following language in 12-point boldface
22capitalized type:
23
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
24
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
25
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
26
ILLINOIS MORTGAGE FORECLOSURE LAW.

 

 

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1    (b-10) Notice of confirmation order sent to municipality or
2county. A copy of the confirmation order required under
3subsection (b) shall be sent to the municipality in which the
4foreclosed property is located, or to the county within the
5boundary of which the foreclosed property is located if the
6foreclosed property is located in an unincorporated territory.
7A municipality or county must clearly publish on its website a
8single address to which a copy of the order shall be sent. If a
9municipality or county does not maintain a website, then the
10municipality or county must publicly post in its main office a
11single address to which a copy of the order shall be sent. In
12the event that a municipality or county has not complied with
13the publication requirement in this subsection (b-10), then a
14copy of the order shall be sent by first class mail, postage
15prepaid, to the chairperson of the county board or county clerk
16in the case of a county, to the mayor or city clerk in the case
17of a city, to the president of the board of trustees or village
18clerk in the case of a village, or to the president or town
19clerk in the case of a town.
20    (b-15) Notice of confirmation order sent to known insurers.
21With respect to residential real estate, the party filing the
22complaint shall send a copy of the confirmation order required
23under subsection (b) by first class mail, postage prepaid, to
24the last known property insurer of the foreclosed property.
25Failure to send or receive a copy of the order shall not impair
26or abrogate in any way the rights of the mortgagee or purchaser

 

 

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1or affect the status of the foreclosure proceedings.
2    (c) Failure to Give Notice. If any sale is held without
3compliance with subsection (c) of Section 15-1507 of this
4Article, any party entitled to the notice provided for in
5paragraph (3) of that subsection (c) who was not so notified
6may, by motion supported by affidavit made prior to
7confirmation of such sale, ask the court which entered the
8judgment to set aside the sale. Any such party shall guarantee
9or secure by bond a bid equal to the successful bid at the
10prior sale, unless the party seeking to set aside the sale is
11the mortgagor, the real estate sold at the sale is residential
12real estate, and the mortgagor occupies the residential real
13estate at the time the motion is filed. In that event, no
14guarantee or bond shall be required of the mortgagor. Any
15subsequent sale is subject to the same notice requirement as
16the original sale.
17    (d) Validity of Sale. Except as provided in subsection (c)
18of Section 15-1508, no sale under this Article shall be held
19invalid or be set aside because of any defect in the notice
20thereof or in the publication of the same, or in the
21proceedings of the officer conducting the sale, except upon
22good cause shown in a hearing pursuant to subsection (b) of
23Section 15-1508. At any time after a sale has occurred, any
24party entitled to notice under paragraph (3) of subsection (c)
25of Section 15-1507 may recover from the mortgagee any damages
26caused by the mortgagee's failure to comply with such paragraph

 

 

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1(3). Any party who recovers damages in a judicial proceeding
2brought under this subsection may also recover from the
3mortgagee the reasonable expenses of litigation, including
4reasonable attorney's fees.
5    (d-5) Making Home Affordable Program. The court that
6entered the judgment shall set aside a sale held pursuant to
7Section 15-1507, upon motion of the mortgagor at any time prior
8to the confirmation of the sale, if the mortgagor proves by a
9preponderance of the evidence that (i) the mortgagor has
10applied for assistance under the Making Home Affordable Program
11established by the United States Department of the Treasury
12pursuant to the Emergency Economic Stabilization Act of 2008,
13as amended by the American Recovery and Reinvestment Act of
142009, and (ii) the mortgaged real estate was sold in material
15violation of the program's requirements for proceeding to a
16judicial sale. The provisions of this subsection (d-5), except
17for this sentence, shall become inoperative on January 1, 2016
182014 for all actions filed under this Article after December
1931, 2015 2013, in which the mortgagor did not apply for
20assistance under the Making Home Affordable Program on or
21before December 31, 2015 2013.
22    (e) Deficiency Judgment. In any order confirming a sale
23pursuant to the judgment of foreclosure, the court shall also
24enter a personal judgment for deficiency against any party (i)
25if otherwise authorized and (ii) to the extent requested in the
26complaint and proven upon presentation of the report of sale in

 

 

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1accordance with Section 15-1508. Except as otherwise provided
2in this Article, a judgment may be entered for any balance of
3money that may be found due to the plaintiff, over and above
4the proceeds of the sale or sales, and enforcement may be had
5for the collection of such balance, the same as when the
6judgment is solely for the payment of money. Such judgment may
7be entered, or enforcement had, only in cases where personal
8service has been had upon the persons personally liable for the
9mortgage indebtedness, unless they have entered their
10appearance in the foreclosure action.
11    (f) Satisfaction. Upon confirmation of the sale, the
12judgment stands satisfied to the extent of the sale price less
13expenses and costs. If the order confirming the sale includes a
14deficiency judgment, the judgment shall become a lien in the
15manner of any other judgment for the payment of money.
16    (g) The order confirming the sale shall include,
17notwithstanding any previous orders awarding possession during
18the pendency of the foreclosure, an award to the purchaser of
19possession of the mortgaged real estate, as of the date 30 days
20after the entry of the order, against the parties to the
21foreclosure whose interests have been terminated.
22    An order of possession authorizing the removal of a person
23from possession of the mortgaged real estate shall be entered
24and enforced only against those persons personally named as
25individuals in the complaint or the petition under subsection
26(h) of Section 15-1701. No order of possession issued under

 

 

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1this Section shall be entered against a lessee with a bona fide
2lease of a dwelling unit in residential real estate in
3foreclosure, whether or not the lessee has been made a party in
4the foreclosure. An order shall not be entered and enforced
5against any person who is only generically described as an
6unknown owner or nonrecord claimant or by another generic
7designation in the complaint.
8    Notwithstanding the preceding paragraph, the failure to
9personally name, include, or seek an award of possession of the
10mortgaged real estate against a person in the confirmation
11order shall not abrogate any right that the purchaser may have
12to possession of the mortgaged real estate and to maintain a
13proceeding against that person for possession under Article IX
14of this Code or, if applicable, under subsection (h) of Section
1515-1701; and possession against a person who (1) has not been
16personally named as a party to the foreclosure and (2) has not
17been provided an opportunity to be heard in the foreclosure
18proceeding may be sought only by maintaining a proceeding under
19Article IX of this Code or, if applicable, under subsection (h)
20of Section 15-1701.
21    (h) With respect to mortgaged real estate containing 5 or
22more dwelling units, the order confirming the sale shall also
23provide that (i) the mortgagor shall transfer to the purchaser
24the security deposits, if any, that the mortgagor received to
25secure payment of rent or to compensate for damage to the
26mortgaged real estate from any current occupant of a dwelling

 

 

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1unit of the mortgaged real estate, as well as any statutory
2interest that has not been paid to the occupant, and (ii) the
3mortgagor shall provide an accounting of the security deposits
4that are transferred, including the name and address of each
5occupant for whom the mortgagor holds the deposit and the
6amount of the deposit and any statutory interest.
7(Source: P.A. 97-333, eff. 8-12-11; 97-575, eff. 8-26-11;
897-1159, eff. 1-29-13; 97-1164, eff. 6-1-13; 98-514, eff.
911-19-13.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".