Illinois Compiled Statutes
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CIVIL PROCEDURE735 ILCS 5/Art. XV Pt. 14
(735 ILCS 5/) Code of Civil Procedure.
(735 ILCS 5/Art. XV Pt. 14 heading)
Methods of Terminating
Mortgagor's Interest in Real Estate
735 ILCS 5/15-1401
(735 ILCS 5/15-1401)
(from Ch. 110, par. 15-1401)
Deed in Lieu of Foreclosure.
The mortgagor and
mortgagee may agree on a termination of the mortgagor's interest in the
mortgaged real estate after a default by a mortgagor. Any mortgagee or
mortgagee's nominee may accept a deed from the mortgagor in lieu of
foreclosure subject to any other claims or liens affecting the real estate.
Acceptance of a deed in lieu of foreclosure shall relieve from personal
liability all persons who may owe payment or the performance of other
obligations secured by the mortgage, including guarantors of such
indebtedness or obligations, except to the extent a person agrees not to be
relieved in an instrument executed contemporaneously. A deed in lieu of
foreclosure, whether to the mortgagee or mortgagee's nominee, shall not
effect a merger of the mortgagee's interest as mortgagee and the
mortgagee's interest derived from the deed in lieu of foreclosure.
The mere tender of an executed deed by the mortgagor or the recording of
a deed by the mortgagor to the mortgagee shall not constitute acceptance by
the mortgagee of a deed in lieu of foreclosure.
(Source: P.A. 86-974.)
735 ILCS 5/15-1401.1
(735 ILCS 5/15-1401.1)
Short sale in foreclosure.
(a) For purposes of this Section, "short sale" means the sale of real
estate that is subject to a mortgage for an amount that is less
than the amount owed to the mortgagee on the outstanding
(b) In a foreclosure of residential real estate, if (i) the
mortgagor presents to the mortgagee a bona fide written offer from a
third party to purchase the property that is the subject of the
foreclosure proceeding, (ii) the written offer to purchase is
for an amount which constitutes a short sale of the property,
and (iii) the mortgagor makes a written request to the
mortgagee to approve the sale on the terms of the offer to
purchase, the mortgagee must respond to the mortgagor within 90
days after receipt of the written offer and written request.
(c) The mortgagee shall determine whether to accept the mortgagor's short sale offer. Failure to accept the offer shall not impair or abrogate in any way the rights of the mortgagee or affect the status of the foreclosure proceedings. The 90-day period shall not operate as a stay of the proceedings.
(Source: P.A. 97-666, eff. 1-13-12.)
735 ILCS 5/15-1402
(735 ILCS 5/15-1402)
(from Ch. 110, par. 15-1402)
(a) No Objection. In a
foreclosure, the court shall enter a judgment satisfying the mortgage
indebtedness by vesting absolute title to the mortgaged real estate in the
mortgagee free and clear of all claims, liens (except liens of the United
States of America which cannot be foreclosed without judicial sale) and
interest of the mortgagor, including all rights of reinstatement and
redemption, and of all rights of all other persons made parties in the
foreclosure whose interests are subordinate to that of the mortgagee and
all nonrecord claimants given notice in accordance with paragraph (2) of
subsection (c) of Section
15-1502 if at any time before sale:
(1) the mortgagee offers, in connection with such a
judgment, to waive any and all rights to a personal judgment for deficiency against the mortgagor and against all other persons liable for the indebtedness or other obligations secured by the mortgage;
(2) such offer is made either in the foreclosure
complaint or by motion upon notice to all parties not in default;
(3) all mortgagors who then have an interest in the
mortgaged real estate, by answer to the complaint, response to the motion or stipulation filed with the court expressly consent to the entry of such judgment;
(4) no other party, by answer or by response to the
motion or stipulation, within the time allowed for such answer or response, objects to the entry of such judgment; and
(5) upon notice to all parties who have not
previously been found in default for failure to appear, answer or otherwise plead.
(b) Objection. If any party other than a mortgagor who
then has an interest in the mortgaged real estate objects to the entry
of such judgment by consent, the court, after hearing, shall enter an order
(1) that for good cause shown, the judgment by
consent shall not be allowed; or
(2) that, good cause not having been shown by the
objecting party and the objecting party not having agreed to pay the amount required to redeem in accordance with subsection (d) of Section 15-1603, title to the mortgaged real estate be vested in the mortgagee as requested by the mortgagee and consented to by the mortgagor; or
(3) determining the amount required to redeem in
accordance with subsection (d) of Section 15-1603, finding that the objecting party (or, if more than one party so objects, the objecting party who has the least priority) has agreed to pay such amount and additional interest under the mortgage accrued to the date of payment within 30 days after entry of the order, and declaring that upon payment of such amount within 30 days title to the mortgaged real estate shall be vested in such objecting party. Title so vested shall be free and clear of all claims, liens (except liens of the United States of America which cannot be foreclosed without judicial sale) and interest of the mortgagor and of all rights of other persons made parties in the foreclosure whose interests are subordinate to the interest of the mortgagee and all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15-1502. If any objecting party subject to such an order has not paid the amount required to redeem in accordance with that order within the 30-day period, the court (i) shall order that such title to the mortgaged real estate shall vest in the objecting party next higher in priority (and successively with respect to each other objecting party in increasing order of such party's priority), if any, upon that party's agreeing to pay within 30 days after the entry of such further order, such amount as specified in the original order plus additional interest under the terms of the mortgage accrued to the date of payment, provided that such party pays such amount within the 30-day period, and (ii) may order that the non-paying objecting party pay costs, interest accrued between the start of the preceding 30-day period and the later of the date another objecting party makes the payment, if applicable, or the date such period expired, and the reasonable attorneys' fees incurred by all other parties on account of that party's objection.
(c) Judgment. Any judgment entered pursuant to Section 15-1402 shall
recite the mortgagee's waiver of rights to a personal judgment for
deficiency and shall bar the mortgagee from obtaining such a deficiency
judgment against the mortgagor or any other person liable for the
indebtedness or other obligations secured by the mortgage.
(Source: P.A. 86-974.)
735 ILCS 5/15-1403
(735 ILCS 5/15-1403)
(from Ch. 110, par. 15-1403)
Common Law Strict Foreclosure.
Nothing in this Article
shall affect the right of a mortgagee to foreclose its mortgage by a common
law strict foreclosure as in existence in Illinois on the effective date of
(Source: P.A. 84-1462.)
735 ILCS 5/15-1404
(735 ILCS 5/15-1404)
(from Ch. 110, par. 15-1404)
Except as provided
in subsection (d) of Section 15-1501, the interest in the
mortgaged real estate of (i) all persons
made a party in such foreclosure and (ii) all nonrecord claimants given
notice in accordance with paragraph (2) of subsection (c) of Section
15-1502, shall be terminated by the
judicial sale of the real estate, pursuant to a judgment of
foreclosure, provided the sale is confirmed in
accordance with this Article.
(Source: P.A. 85-907.)
735 ILCS 5/15-1405
(735 ILCS 5/15-1405)
(from Ch. 110, par. 15-1405)
Power of Sale.
No real estate within this State may be
sold by virtue of any power of sale contained in a mortgage or any other
agreement, and all such mortgages may only be foreclosed in accordance with
(Source: P.A. 84-1462.)