HB4769 95TH GENERAL ASSEMBLY

LRB095 15330 BDD 41318 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4769

Introduced , by Rep. Michael Tryon

SYNOPSIS AS INTRODUCED:

35 ILCS 200/21-135
35 ILCS 200/22-5
35 ILCS 200/22-25
35 ILCS 200/22-100 new

Amends the Property Tax Code. Requires mortgagees to forward certain notices concerning tax sales to each mortgagor. Requires mortgagees to consult in person with each mortgagor before incurring costs to redeem the property. Provides that, if the mortgagee fails to hold the personal consultation or to forward the notices as required, then the mortgagee may not attempt to collect any redemption cost from any mortgagee.

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Property Tax Code is amended by changing Sections 21-135, 22-5, and 22-25 and by adding Sections 22-100 and 22-105 as follows:

(35 ILCS 200/21-135)

Sec. 21-135. Mailed notice of application for judgment and sale. Not less than 15 days before the date of application for judgment and sale of delinquent properties, the county collector shall mail, by registered or certified mail, a notice of the forthcoming application for judgment and sale to the person shown by the current collector's warrant book to be the party in whose name the taxes were last assessed or to the current owner of record and, if applicable, to the party specified under Section 15-170. The notice shall include the intended dates of application for judgment and sale and commencement of the sale, and a description of the properties. The county collector must present proof of the mailing to the court along with the application for judgement.

In counties with less than 3,000,000 inhabitants, a copy of this notice shall also be mailed by the county collector by registered or certified mail to any lienholder of record who annually requests a copy of the notice. The failure of the county collector to mail a notice or its non-delivery to the lienholder shall not affect the validity of the judgment.

In counties with 3,000,000 or more inhabitants, notice shall not be mailed to any person when, under Section 14-15, a certificate of error has been executed by the county assessor or by both the county assessor and board of appeals (until the first Monday in December 1998 and the board of review beginning the first Monday in December 1998 and thereafter), except as provided by court order under Section 21-120.

The collector shall collect $10 from the proceeds of each sale to cover the costs of registered or certified mailing and the costs of advertisement and publication. If a taxpayer pays the taxes on the property after the notice of the forthcoming application for judgment and sale is mailed but before the sale is made, then the collector shall collect $10 from the taxpayer to cover the costs of registered or certified mailing and the costs of advertisement and publication.

Any mortgagee that receives a copy of the notice under this Section from the county collector must, within 7 business days after the mortgagee receives the notice, forward, by registered or certified mail, a copy of the notice to each mortgagor of the property referred to in the notice at the last known address of each mortgagor as shown on the records of the mortgagee. The mortgagee may collect a fee of up to $10 from the mortgagor for the administrative costs of forwarding the notice.

(Source: P.A. 93-899, eff. 8-10-04.)

(35 ILCS 200/22-5)

Sec. 22-5. Notice of sale and redemption rights. In order to be entitled to a tax deed, within 4 months and 15 days after any sale held under this Code, the purchaser or his or her assignee shall deliver to the county clerk a notice to be given to the party in whose name the taxes are last assessed as shown by the most recent tax collector's warrant books, in at least 10 point type in the following form completely filled in:

TAKE NOTICE

County of ...............................................

Date Premises Sold ......................................

Certificate No. .........................................

Sold for General Taxes of (year) ........................

Sold for Special Assessment of (Municipality)

and special assessment number ...........................

Warrant No. ............... Inst. No. .................

THIS PROPERTY HAS BEEN SOLD FOR

DELINQUENT TAXES

Property located at .........................................

Legal Description or Permanent Index No. ....................

.............................................................

.............................................................

This notice is to advise you that the above property has been sold for delinquent taxes and that the period of redemption from the sale will expire on .....................

This notice is also to advise you that a petition will be filed for a tax deed which will transfer title and the right to possession of this property if redemption is not made on or before ......................................................

At the date of this notice the total amount which you must pay in order to redeem the above property is ................

YOU ARE URGED TO REDEEM IMMEDIATELY TO

PREVENT LOSS OF PROPERTY

Redemption can be made at any time on or before .... by applying to the County Clerk of .... County, Illinois at the County Court House in ...., Illinois.

The above amount is subject to increase at 6 month intervals from the date of sale. Check with the county clerk as to the exact amount you owe before redeeming. Payment must be made by certified check, cashier's check, money order, or in cash.

For further information contact the County Clerk

ADDRESS:............................ TELEPHONE:..........................

...............................

Purchaser or Assignee

Dated (insert date).

Within 10 days after receipt of said notice, the county clerk shall mail to the addresses supplied by the purchaser or assignee, by registered or certified mail, copies of said notice to the party in whose name the taxes are last assessed as shown by the most recent tax collector's warrant books. The purchaser or assignee shall pay to the clerk postage plus the sum of $10. The clerk shall write or stamp the date of receiving the notices upon the copies of the notices, and retain one copy.

Any mortgagee that receives a copy of the notice under this Section from the county clerk must, within 7 business days after the mortgagee receives the notice, forward, by registered or certified mail, a copy of the notice to each mortgagor of the property referred to in the notice at the last known address of each mortgagor as shown on the records of the mortgagee. The mortgagee may collect a fee of up to $10 from the mortgagor for the administrative costs of forwarding the notice.

(Source: P.A. 94-380, eff. 7-29-05.)

(35 ILCS 200/22-25)

(Text of Section before amendment by P.A. 95-477)

Sec. 22-25. Mailed notice. In addition to the notice required to be served not less than 3 months nor more than 5 months prior to the expiration of the period of redemption, the purchaser or his or her assignee shall prepare and deliver to the clerk of the Circuit Court of the county in which the property is located, the notice provided for in this Section, together with the statutory costs for mailing the notice by certified mail, return receipt requested. The form of notice to be mailed by the clerk shall be identical in form to that provided by Section 22-10 for service upon owners residing upon the property sold, except that it shall bear the signature of the clerk and shall designate the parties to whom it is to be mailed. The clerk may furnish the form. The clerk shall promptly mail the notices delivered to him or her by certified mail, return receipt requested. The certificate of the clerk that he or she has mailed the notices, together with the return receipts, shall be filed in and made a part of the court record. The notices shall be mailed to the owners of the property at their last known addresses, and to those persons who are entitled to service of notice as occupants.

(Source: P.A. 86-949; 87-1189; 88-455.)

(Text of Section after amendment by P.A. 95-477)

Sec. 22-25. Mailed notice. In addition to the notice required to be served not less than 3 months nor more than 6 months prior to the expiration of the period of redemption, the purchaser or his or her assignee shall prepare and deliver to the clerk of the Circuit Court of the county in which the property is located, the notice provided for in this Section, together with the statutory costs for mailing the notice by certified mail, return receipt requested. The form of notice to be mailed by the clerk shall be identical in form to that provided by Section 22-10 for service upon owners residing upon the property sold, except that it shall bear the signature of the clerk and shall designate the parties to whom it is to be mailed. The clerk may furnish the form. The clerk shall promptly mail the notices delivered to him or her by certified mail, return receipt requested. The certificate of the clerk that he or she has mailed the notices, together with the return receipts, shall be filed in and made a part of the court record. The notices shall be mailed to the owners of the property at their last known addresses, and to those persons who are entitled to service of notice as occupants.

Any mortgagee that receives a copy of the notice under this Section from the clerk of the Circuit Court must, within 7 business days after the mortgagee receives the notice, forward, by registered or certified mail, a copy of the notice to each mortgagor of the property referred to in the notice at the last known address of each mortgagor as shown on the records of the mortgagee. The mortgagee may collect a fee of up to $10 from the mortgagor for the administrative costs of forwarding the notice.

The changes to this Section made by this amendatory Act of the 95th General Assembly apply only to matters in which a petition for tax deed is filed on or after the effective date of this amendatory Act of the 95th General Assembly.

(Source: P.A. 95-477, eff. 6-1-08.)

(35 ILCS 200/22-100 new)

Sec. 22-100. Consultation with mortgagor required before mortgagee may redeem property.

(a) Before a mortgagee may incur any redemption cost, the mortgagee must consult in person with each mortgagor. The mortgagor must be given the opportunity to have legal counsel present at the consultation.

(b) If a mortgagee fails to consult with the mortgagor before incurring redemption costs or fails to forward any notice as required under Sections 21-135, 22-5, or 22-25, then the mortgagee may not attempt to collect any redemption cost from any mortgagee.

(c) As used in this Section, "redemption cost" means any amount of redemption under Section 21-355 or any any fee, fine, interest charge, or other cost associated with redeeming property under this Code.

Section 95. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.