Sen. Robert F. Martwick

Filed: 4/3/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2919

2    AMENDMENT NO. ______. Amend Senate Bill 2919 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Sections 15-1506 and 15-1507 and by adding Sections
615-1507.2 and 15-1510.1 as follows:
 
7    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
8    Sec. 15-1506. Judgment.
9    (a) Evidence. In the trial of a foreclosure, the evidence
10to support the allegations of the complaint shall be taken in
11open court, except:
12        (1) where an allegation of fact in the complaint is
13    not denied by a party's verified answer or verified
14    counterclaim, or where a party pursuant to subsection (b)
15    of Section 2-610 of the Code of Civil Procedure states, or
16    is deemed to have stated, in its pleading that it has no

 

 

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1    knowledge of such allegation sufficient to form a belief
2    and attaches the required affidavit, a sworn verification
3    of the complaint or a separate affidavit setting forth
4    such fact is sufficient evidence thereof against such
5    party and no further evidence of such fact shall be
6    required; and
7        (2) where all the allegations of fact in the complaint
8    have been proved by verification of the complaint or
9    affidavit, the court upon motion supported by an affidavit
10    stating the amount which is due the mortgagee, shall enter
11    a judgment of foreclosure as requested in the complaint.
12    (b) Instruments. In all cases the evidence of the
13indebtedness and the mortgage foreclosed shall be exhibited to
14the court and appropriately marked, and copies thereof shall
15be filed with the court.
16    (c) Summary and Default Judgments. Nothing in this Section
1715-1506 shall prevent a party from obtaining a summary or
18default judgment authorized by Article II of the Code of Civil
19Procedure.
20    (d) Notice of Entry of Default. When any judgment in a
21foreclosure is entered by default, notice of such judgment
22shall be given in accordance with Section 2-1302 of the Code of
23Civil Procedure.
24    (e) Matters Required in Judgment. A judgment of
25foreclosure shall include the last date for redemption and all
26rulings of the court entered with respect to each request for

 

 

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1relief set forth in the complaint. The omission of the date for
2redemption shall not extend the time for redemption or impair
3the validity of the judgment.
4    (f) Special Matters in Judgment. Without limiting the
5general authority and powers of the court, special matters may
6be included in the judgment of foreclosure if sought by a party
7in the complaint or by separate motion. Such matters may
8include, without limitation:
9        (1) a manner of sale other than public auction;
10        (2) a sale by sealed bid;
11        (3) an official or other person who shall be the
12    officer to conduct the sale other than the one customarily
13    designated by the court;
14        (4) provisions for non-exclusive broker listings or
15    designating a duly licensed real estate broker nominated
16    by one of the parties to exclusively list the real estate
17    for sale;
18        (5) the fees or commissions to be paid out of the sale
19    proceeds to the listing or other duly licensed broker, if
20    any, who shall have procured the accepted bid;
21        (6) the fees to be paid out of the sale proceeds to an
22    auctioneer, if any, who shall have been authorized to
23    conduct a public auction sale;
24        (7) whether and in what manner and with what content
25    signs shall be posted on the real estate;
26        (8) a particular time and place at which such bids

 

 

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1    shall be received;
2        (9) a particular newspaper or newspapers in which
3    notice of sale shall be published;
4        (10) the format for the advertising of such sale,
5    including the size, content and format of such
6    advertising, and additional advertising of such sale;
7        (11) matters or exceptions to which title in the real
8    estate may be subject at the sale;
9        (12) a requirement that title insurance in a specified
10    form be provided to a purchaser at the sale, and who shall
11    pay for such insurance;
12        (13) whether and to what extent bids with mortgage or
13    other contingencies will be allowed;
14        (14) such other matters as approved by the court to
15    ensure sale of the real estate for the most commercially
16    favorable price for the type of real estate involved.
17    (g) Agreement of the Parties. If all of the parties agree
18in writing on the minimum price and that the real estate may be
19sold to the first person who offers in writing to purchase the
20real estate for such price, and on such other commercially
21reasonable terms and conditions as the parties may agree, then
22the court shall order the real estate to be sold on such terms,
23subject to confirmation of the sale in accordance with Section
2415-1508.
25    (h) Postponement of Proving Priority. With the approval of
26the court prior to the entry of the judgment of foreclosure, a

 

 

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1party claiming an interest in the proceeds of the sale of the
2mortgaged real estate may defer proving the priority of such
3interest until the hearing to confirm the sale.
4    (i) Effect of Judgment and Lien.
5        (1) Upon the entry of the judgment of foreclosure, all
6    rights of a party in the foreclosure against the mortgagor
7    provided for in the judgment of foreclosure or this
8    Article shall be secured by a lien on the mortgaged real
9    estate, which lien shall have the same priority as the
10    claim to which the judgment relates and shall be
11    terminated upon confirmation of a judicial sale in
12    accordance with this Article.
13        (2) Upon the entry of the judgment of foreclosure, the
14    rights in the real estate subject to the judgment of
15    foreclosure of (i) all persons made a party in the
16    foreclosure and (ii) all nonrecord claimants given notice
17    in accordance with paragraph (2) of subsection (c) of
18    Section 15-1502, shall be solely as provided for in the
19    judgment of foreclosure and in this Article.
20        (3) Entry of a judgment of foreclosure does not
21    terminate or otherwise affect a bona fide lease of a
22    dwelling unit in residential real estate in foreclosure,
23    whether or not the lessee has been made a party in the
24    foreclosure.
25(Source: P.A. 98-514, eff. 11-19-13.)
 

 

 

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1    (735 ILCS 5/15-1507)  (from Ch. 110, par. 15-1507)
2    Sec. 15-1507. Judicial Sale.
3    (a) In General. Except as provided in Sections 15-1402 and
415-1403, upon entry of a judgment of foreclosure, the real
5estate which is the subject of the judgment shall be sold at a
6judicial sale in accordance with this Section 15-1507.
7    (b) Sale Procedures.
8        (1) Upon expiration of the reinstatement period and
9    the redemption period in accordance with subsection (b) or
10    (c) of Section 15-1603 or upon the entry of a judgment of
11    foreclosure after the waiver of all rights of redemption,
12    except as provided in subsection (g) of Section 15-1506,
13    the real estate shall be sold at a sale as provided in this
14    Article, on such terms and conditions as shall be
15    specified by the person conducting the sale court in the
16    judgment of foreclosure. A sale may be conducted by any
17    judge, or sheriff, or other person as set forth in
18    paragraph (3) of subsection (f) of Section 15-1506. The
19    person conducting the sale has the discretion to set the
20    terms of the sale.
21        (2) Without limiting the general authority and powers
22    of the court, the mortgagee, in a foreclosure under this
23    Article may request that the judge, sheriff, or other
24    person conduct the sale either in person, if available, or
25    online or both.
26    (c) Notice of Sale. The mortgagee, or such other party

 

 

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1designated by the court, in a foreclosure under this Article
2shall give public notice of the sale as follows:
3        (1) The notice of sale shall include at least the
4    following information, but an immaterial error in the
5    information shall not invalidate the legal effect of the
6    notice:
7            (A) the name, address and telephone number of the
8        person to contact for information regarding the real
9        estate;
10            (B) the common address and other common
11        description (other than legal description), if any, of
12        the real estate;
13            (C) a legal description of the real estate
14        sufficient to identify it with reasonable certainty;
15            (D) a description of the improvements on the real
16        estate;
17            (E) the times specified in the judgment, if any,
18        when the real estate may be inspected prior to sale;
19            (F) the time and place of the sale, including: ;
20                (i) whether the sale will take place online,
21            in person, or both; and
22                (ii) the website where the online bidding may
23            take place, if applicable;
24            (G) the terms of the sale;
25            (H) the case title, case number and the court in
26        which the foreclosure was filed;

 

 

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1            (H-1) in the case of a condominium unit to which
2        subsection (g) of Section 9 of the Condominium
3        Property Act applies, the statement required by
4        subdivision (g)(5) of Section 9 of the Condominium
5        Property Act;
6            (H-2) in the case of a unit of a common interest
7        community to which subsection (g-1) of Section 18.5 of
8        the Condominium Property Act applies, the statement
9        required by subdivision (g-1) of Section 18.5 of the
10        Condominium Property Act; and
11            (I) such other information ordered by the Court.
12        (2) The notice of sale shall be published at least 3
13    consecutive calendar weeks (Sunday through Saturday), once
14    in each week, the first such notice to be published not
15    more than 45 days prior to the sale, the last such notice
16    to be published not less than 7 days prior to the sale, by:
17    (i) (A) advertisements in a newspaper circulated to the
18    general public in the county in which the real estate is
19    located, in the section of that newspaper where legal
20    notices are commonly placed and (B) separate
21    advertisements in the section of such a newspaper, which
22    (except in counties with a population in excess of
23    3,000,000) may be the same newspaper, in which real estate
24    other than real estate being sold as part of legal
25    proceedings is commonly advertised to the general public;
26    provided, that the separate advertisements in the real

 

 

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1    estate section need not include a legal description and
2    that where both advertisements could be published in the
3    same newspaper and that newspaper does not have separate
4    legal notices and real estate advertisement sections, a
5    single advertisement with the legal description shall be
6    sufficient; in counties with a population of more than
7    3,000,000, the notice required by this item (B) shall be
8    published in a newspaper different from the newspaper that
9    publishes the notice required by item (A), and the
10    newspaper in which the notice required by this item (B) is
11    published shall be a newspaper published in the township
12    in which the real estate is located; and (ii) such other
13    publications as may be further ordered by the court.
14        (3) The party who gives notice of public sale in
15    accordance with subsection (c) of Section 15-1507 shall
16    also give notice to all parties in the action who have
17    appeared and have not theretofore been found by the court
18    to be in default for failure to plead. Such notice shall be
19    given in the manner provided in the applicable rules of
20    court for service of papers other than process and
21    complaint, not more than 45 days nor less than 7 days prior
22    to the day of sale. After notice is given as required in
23    this Section a copy thereof shall be filed in the office of
24    the clerk of the court entering the judgment, together
25    with a certificate of counsel or other proof that notice
26    has been served in compliance with this Section.

 

 

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1        (4) The party who gives notice of public sale in
2    accordance with subsection (c) of Section 15-1507 shall
3    again give notice in accordance with that Section of any
4    adjourned sale; provided, however, that if the adjourned
5    sale is to occur less than 60 days after the last scheduled
6    sale, notice of any adjourned sale need not be given
7    pursuant to this Section. In the event of adjournment, the
8    person conducting the sale shall, upon adjournment,
9    announce the date, time and place upon which the adjourned
10    sale shall be held or post on its website the date, time,
11    and place upon which the adjourned sale shall be held.
12    Notwithstanding any language to the contrary, for any
13    adjourned sale that is to be conducted more than 60 days
14    after the date on which it was to first be held, the party
15    giving notice of such sale shall again give notice in
16    accordance with this Section.
17        (5) Notice of the sale may be given prior to the
18    expiration of any reinstatement period or redemption
19    period.
20        (6) No other notice by publication or posting shall be
21    necessary unless required by order or rule of the court.
22        (7) The person named in the notice of sale to be
23    contacted for information about the real estate may, but
24    shall not be required, to provide additional information
25    other than that set forth in the notice of sale.
26    (d) Election of Property. If the real estate which is the

 

 

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1subject of a judgment of foreclosure is susceptible of
2division, the court may order it to be sold as necessary to
3satisfy the judgment. The court shall determine which real
4estate shall be sold, and the court may determine the order in
5which separate tracts may be sold.
6    (e) Receipt upon Sale. Following Upon and at the sale of
7mortgaged real estate, the person conducting the sale shall
8give to the purchaser a receipt of sale. The receipt shall
9describe the real estate purchased and shall show the amount
10bid, the amount paid, the total amount paid to date and the
11amount still to be paid therefor. An additional receipt shall
12be given at the time of each subsequent payment.
13    (f) Certificate of Sale. Upon payment in full of the
14amount bid, the person conducting the sale shall issue, in
15duplicate, and give to the purchaser a Certificate of Sale.
16The Certificate of Sale shall be in a recordable form,
17describe the real estate purchased, indicate the date and
18place of sale and show the amount paid therefor. The
19Certificate of Sale shall further indicate that it is subject
20to confirmation by the court. The duplicate certificate may be
21recorded in accordance with Section 12-121. The Certificate of
22Sale shall be freely assignable by endorsement thereon.
23    (g) Interest after Sale. Any bid at sale shall be deemed to
24include, without the necessity of a court order, interest at
25the statutory judgment rate on any unpaid portion of the sale
26price from the date of sale to the date of payment.

 

 

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1(Source: P.A. 100-685, eff. 8-3-18.)
 
2    (735 ILCS 5/15-1507.2 new)
3    Sec. 15-1507.2. Online judicial sale.
4    (a) The sheriff or other person may conduct the sale
5online in accordance with this Article.
6    (b) The sheriff or other person may engage a third-party
7online sale provider to assist with performance of the online
8sale. Any third-party online sale provider engaged by a
9sheriff must be acquired through a process that confirms that
10the provider meets the requirements set forth in this Article.
11    (c) In this Section, "third-party online sale provider"
12means any sale platform or services provider that is not the
13person conducting the sale or a party to the case involving the
14judicial sale and that is engaged by the person conducting the
15sale to assist with conducting the sale online in accordance
16with State law.
17    (d) The sheriff or other person may charge an additional
18fee payable upon the completion of the sale as a reasonable
19expense of the sale for costs associated with conducting the
20sale online as approved by the court.
21    (c-1) For any foreclosure involving residential real
22estate, such fee must not to exceed $400, unless a higher fee
23is otherwise approved by the court. Any fees not charged as a
24cost in the case may be agreed to and paid directly by the
25judge, sheriff, other person conducting the sale or a party to

 

 

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1the case without limitation.
2    The fees charged under this section shall not reduce or
3impact the sheriff's fees set for in Section 4-5001 and
44-12001 of the Counties Code.
5    (e) For any foreclosure involving residential real estate,
6the fee charged under this Section must not exceed $400,
7unless a higher fee is otherwise approved by the court. Any
8fees not charged as a cost in the case may be agreed to and
9paid directly by the judge, sheriff, other person conducting
10the sale or a party to the case without limitation. The fees
11shall not reduce or impact the sheriff's fees set for in
12Section 4-5001 and 4-12001 of the Counties Code.
13    (f) To conduct a sale online, the sheriff or other person
14conducting the sale must demonstrate to the court's
15satisfaction documented processes and procedures for
16conducting online auctions, adequate record keeping, and the
17ability to comply with the requirements in this Article.
18    (g) If the sale takes place both online and in person, all
19bids accepted during the auction shall be simultaneously
20announced at the in-person sale and visible to the public
21online at the time the bids are placed. Any maximum bid amounts
22provided by bidders ahead of the sale shall not be visible to
23the public until the bid is placed.
24    (h) There shall be no fee charged to the public to view
25properties for sale online or to participate in any auction in
26person or online.

 

 

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1    (i) Any third-party online sale provider may not maintain
2custody of sale funds on behalf of the judge, sheriff, or other
3person conducting the sale unless specifically approved by the
4court to maintain custody of funds on their behalf.
5    (j) The sheriff or other person conducting the sale shall
6require a person seeking to bid electronically online to
7complete a registration process that includes providing
8information relevant to properly identify the bidder, contact
9the bidder, and complete the sale of the property as
10determined by the sheriff or other person conducting the sale.
11    (k) If the person registering to bid is an individual, the
12information required shall include the individual's name,
13electronic mail address, and telephone number.
14    (l) If the person registering to bid is an entity, the
15information required in this Section shall include the
16entity's legal name, name of an individual contact person for
17the entity, electronic mail address, and telephone number.
18    (m) The sheriff or other person conducting the sale online
19shall require all bidders who wish to participate in bidding
20online to have their identity verified through an
21identification verification process before a bid can be placed
22online, which may include verification through a government
23issued identification, biometric verification, or other method
24of verification as determined by the judge, sheriff, or other
25person conducting the sale. If a bidder's identity cannot be
26verified through the verification process, then the bidder may

 

 

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1be prohibited from participating in the online sale.
2    (n) The purchaser at the sale shall submit to the person
3conducting the sale the following information prior to the
4sale being finalized:
5        (1) All winning purchasers shall provide any required
6    information to be checked against the federal Office for
7    Foreign Assets Control sanction list by the person
8    conducting the sale before finalizing the purchase of the
9    property. The person conducting the sale shall check the
10    winning purchaser against the sanction list before an
11    order approving the sale may be entered.
12        (2) If the purchaser is an individual, the information
13    shall include the individual's name, physical mailing
14    address, electronic mail address, and any other
15    information requested by the person conducting the sale to
16    adequately identify and contact the purchaser;
17        (3) If the purchaser is an entity, the information
18    shall include the entity's legal name, trade name if
19    different from its legal name, state and date of
20    formation, mailing address, proof of business registration
21    with the State of Illinois, and the name of an individual
22    contact person for the entity, electronic mail address,
23    and the person's telephone number.
24        (4) If the purchaser fails to provide the required
25    information within the time period designated by the
26    judge, sheriff, or other person conducting the sale, the

 

 

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1    purchaser is in default and the judge, sheriff, or other
2    person conducting the sale may void the sale and proceed
3    with a resale.
4    (o) Any person conducting a sale online must obtain
5evidence of satisfactory internal informational security
6controls that meet industry standards and are maintained by
7the platform used to conduct online sales. Upon the request of
8the court or interested party to the case, the person
9conducting the sale shall provide such evidence of
10satisfactory internal controls regarding data security that
11may be in the form of an annual SOC2 Report, with the ability
12to test and report on the design effectiveness (Type 1) and
13operating effectiveness (Type 2) of the platform's controls,
14or another form acceptable to the court ensuring performance
15and security requirements are met.
16    (p) The person conducting the sale and the third-party
17online sale provider may engage in activities to promote and
18market the sale to encourage and facilitate bidding, including
19listing the property on real estate websites and conduct email
20campaigns. The person conducting the sale or the third-party
21online sale provider is solely responsible for paying all fees
22or expenses incurred in connection with such activities.
 
23    (735 ILCS 5/15-1510.1 new)
24    Sec. 15-1510.1. Third-party purchaser fees and costs.
25Notwithstanding any other provision of law to the contrary,

 

 

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1for the sale of residential real estate, no fee, including a
2buyer's premium, may be charged to a third-party bidder or
3purchaser who is not a party to the case at the sale of real
4estate under this Article beyond the winning bid amount to
5cover an expense of sale.".