HB1293 EngrossedLRB097 07425 AJO 47534 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 15-1503, 15-1506, 15-1507, and 15-1508 as
6follows:
 
7    (735 ILCS 5/15-1503)  (from Ch. 110, par. 15-1503)
8    Sec. 15-1503. Notice of Foreclosure.
9    (a) A notice of foreclosure, whether the foreclosure is
10initiated by complaint or counterclaim, made in accordance with
11this Section and recorded in the county in which the mortgaged
12real estate is located shall be constructive notice of the
13pendency of the foreclosure to every person claiming an
14interest in or lien on the mortgaged real estate, whose
15interest or lien has not been recorded prior to the recording
16of such notice of foreclosure. Such notice of foreclosure must
17be executed by any party or any party's attorney and shall
18include (i) the names of all plaintiffs and the case number,
19(ii) the court in which the action was brought, (iii) the names
20of title holders of record, (iv) a legal description of the
21real estate sufficient to identify it with reasonable
22certainty, (v) a common address or description of the location
23of the real estate and (vi) identification of the mortgage

 

 

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1sought to be foreclosed. An incorrect common address or
2description of the location, or an immaterial error in the
3identification of a plaintiff or title holder of record, shall
4not invalidate the lis pendens effect of the notice under this
5Section. A notice which complies with this Section shall be
6deemed to comply with Section 2-1901 of the Code of Civil
7Procedure and shall have the same effect as a notice filed
8pursuant to that Section; however, a notice which complies with
9Section 2-1901 shall not be constructive notice unless it also
10complies with the requirements of this Section.
11    (b) With respect to residential real estate, a copy of the
12notice of foreclosure described in subsection (a) of Section
1315-1503 shall be sent by first class mail, postage prepaid, to
14the municipality within the boundary of which the mortgaged
15real estate is located, or to the county within the boundary of
16which the mortgaged real estate is located if the mortgaged
17real estate is located in an unincorporated territory. A
18municipality or county must clearly publish on its website a
19single address to which such notice shall be sent. If a
20municipality or county does not maintain a website, then the
21municipality or county must publicly post in its main office a
22single address to which such notice shall be sent. In the event
23that a municipality or county has not complied with the
24publication requirement in this subsection (b), then such
25notice to the municipality or county shall be sent by first
26class mail to the chairperson of the county board or county

 

 

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1clerk in the case of a county, to the mayor or city clerk in the
2case of a city, to the president of the board of trustees or
3village clerk in the case of a village, to the president or
4town clerk in the case of a town, or in the case of Chicago to
5the city clerk and the alderman for the ward in which the
6property is located provided pursuant to Section 2-211 of the
7Code of Civil Procedure.
8(Source: P.A. 96-856, eff. 3-1-10.)
 
9    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
10    Sec. 15-1506. Judgment. (a) Evidence. In the trial of a
11foreclosure, the evidence to support the allegations of the
12complaint shall be taken in open court, except:
13    (1) where an allegation of fact in the complaint is not
14denied by a party's verified answer or verified counterclaim,
15or where a party pursuant to subsection (b) of Section 2-610 of
16the Code of Civil Procedure states, or is deemed to have
17stated, in its pleading that it has no knowledge of such
18allegation sufficient to form a belief and attaches the
19required affidavit, a sworn verification of the complaint or a
20separate affidavit setting forth such fact is sufficient
21evidence thereof against such party and no further evidence of
22such fact shall be required; and
23    (2) where all the allegations of fact in the complaint have
24been proved by verification of the complaint or affidavit, the
25court upon motion supported by an affidavit stating the amount

 

 

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1which is due the mortgagee, shall enter a judgment of
2foreclosure as requested in the complaint.
3    (b) Instruments. In all cases the evidence of the
4indebtedness and the mortgage foreclosed shall be exhibited to
5the court and appropriately marked, and copies thereof shall be
6filed with the court.
7    (c) Summary and Default Judgments. Nothing in this Section
815-1506 shall prevent a party from obtaining a summary or
9default judgment authorized by Article II of the Code of Civil
10Procedure.
11    (d) Notice of Entry of Default. When any judgment in a
12foreclosure is entered by default, notice of such judgment
13shall be given in accordance with Section 2-1302 of the Code of
14Civil Procedure.
15    (e) Matters Required in Judgment. A judgment of foreclosure
16shall include the last date for redemption and all rulings of
17the court entered with respect to each request for relief set
18forth in the complaint. The omission of the date for redemption
19shall not extend the time for redemption or impair the validity
20of the judgment.
21    (f) Special Matters in Judgment. Without limiting the
22general authority and powers of the court, special matters may
23be included in the judgment of foreclosure if sought by a party
24in the complaint or by separate motion brought by a party. Such
25matters may include, without limitation:
26    (1) a manner of sale other than public auction;

 

 

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1    (2) a sale by sealed bid;
2    (3) the an official or other person who shall be the
3officer to conduct the sale other than the one customarily
4designated by the court;
5    (4) provisions for non-exclusive broker listings or
6designating a duly licensed real estate broker nominated by one
7of the parties to exclusively list the real estate for sale;
8    (5) the fees or commissions to be paid out of the sale
9proceeds to the listing or other duly licensed broker, if any,
10who shall have procured the accepted bid;
11    (6) the fees to be paid out of the sale proceeds to an
12auctioneer, if any, who shall have been authorized to conduct a
13public auction sale;
14    (7) whether and in what manner and with what content signs
15shall be posted on the real estate;
16    (8) a particular time and place at which such bids shall be
17received;
18    (9) a particular newspaper or newspapers in which notice of
19sale shall be published;
20    (10) the format for the advertising of such sale, including
21the size, content and format of such advertising, and
22additional advertising of such sale;
23    (11) matters or exceptions to which title in the real
24estate may be subject at the sale;
25    (12) a requirement that title insurance in a specified form
26be provided to a purchaser at the sale, and who shall pay for

 

 

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1such insurance;
2    (13) whether and to what extent bids with mortgage or other
3contingencies will be allowed;
4    (14) such other matters as approved by the court to ensure
5sale of the real estate for the most commercially favorable
6price for the type of real estate involved.
7    (g) Agreement of the Parties. If all of the parties agree
8in writing on the minimum price and that the real estate may be
9sold to the first person who offers in writing to purchase the
10real estate for such price, and on such other commercially
11reasonable terms and conditions as the parties may agree, then
12the court shall order the real estate to be sold on such terms,
13subject to confirmation of the sale in accordance with Section
1415-1508.
15    (h) Postponement of Proving Priority. With the approval of
16the court prior to the entry of the judgment of foreclosure, a
17party claiming an interest in the proceeds of the sale of the
18mortgaged real estate may defer proving the priority of such
19interest until the hearing to confirm the sale.
20    (i) Effect of Judgment and Lien. (1) Upon the entry of the
21judgment of foreclosure, all rights of a party in the
22foreclosure against the mortgagor provided for in the judgment
23of foreclosure or this Article shall be secured by a lien on
24the mortgaged real estate, which lien shall have the same
25priority as the claim to which the judgment relates and shall
26be terminated upon confirmation of a judicial sale in

 

 

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1accordance with this Article.
2    (2) Upon the entry of the judgment of foreclosure, the
3rights in the real estate subject to the judgment of
4foreclosure of (i) all persons made a party in the foreclosure
5and (ii) all nonrecord claimants given notice in accordance
6with paragraph (2) of subsection (c) of Section 15-1502, shall
7be solely as provided for in the judgment of foreclosure and in
8this Article.
9(Source: P.A. 85-907.)
 
10    (735 ILCS 5/15-1507)  (from Ch. 110, par. 15-1507)
11    Sec. 15-1507. Judicial Sale.
12    (a) In General. Except as provided in Sections 15-1402 and
1315-1403, upon entry of a judgment of foreclosure, the real
14estate which is the subject of the judgment shall be sold at a
15judicial sale in accordance with this Section 15-1507.
16    (b) Sale Procedures. Upon expiration of the reinstatement
17period and the redemption period in accordance with subsection
18(b) or (c) of Section 15-1603 or upon the entry of a judgment
19of foreclosure after the waiver of all rights of redemption,
20except as provided in subsection (g) of Section 15-1506, the
21real estate shall be sold at a sale as provided in this
22Article, on such terms and conditions as shall be specified by
23the court in the judgment of foreclosure. In the absence of an
24appointment made pursuant to a motion under subsection (f) of
25Section 15-1506, the person conducting the sale shall be chosen

 

 

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1by the plaintiff and shall be (i) any person who had been
2appointed pursuant to Section 15-1506 by any circuit court in
3any matter prior to the effective date of this amendatory Act
4of the 97th General Assembly, (ii) any judge, or (iii) the
5sheriff of the county in which the real estate is located. A
6sale may be conducted by any judge or sheriff.
7    (c) Notice of Sale. The mortgagee, or such other party
8designated by the court, in a foreclosure under this Article
9shall give public notice of the sale as follows:
10        (1) The notice of sale shall include at least the
11    following information, but an immaterial error in the
12    information shall not invalidate the legal effect of the
13    notice:
14            (A) the name, address and telephone number of the
15        person to contact for information regarding the real
16        estate;
17            (B) the common address and other common
18        description (other than legal description), if any, of
19        the real estate;
20            (C) a legal description of the real estate
21        sufficient to identify it with reasonable certainty;
22            (D) a description of the improvements on the real
23        estate;
24            (E) the times specified in the judgment, if any,
25        when the real estate may be inspected prior to sale;
26            (F) the time and place of the sale;

 

 

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

 

 

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

 

 

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1    sale is to occur less than 60 days after the last scheduled
2    sale, notice of any adjourned sale need not be given
3    pursuant to this Section. In the event of adjournment, the
4    person conducting the sale shall, upon adjournment,
5    announce the date, time and place upon which the adjourned
6    sale shall be held. Notwithstanding any language to the
7    contrary, for any adjourned sale that is to be conducted
8    more than 60 days after the date on which it was to first
9    be held, the party giving notice of such sale shall again
10    give notice in accordance with this Section.
11        (5) Notice of the sale may be given prior to the
12    expiration of any reinstatement period or redemption
13    period.
14        (6) No other notice by publication or posting shall be
15    necessary unless required by order or rule of the court.
16        (7) The person named in the notice of sale to be
17    contacted for information about the real estate may, but
18    shall not be required, to provide additional information
19    other than that set forth in the notice of sale.
20    (d) Election of Property. If the real estate which is the
21subject of a judgment of foreclosure is susceptible of
22division, the court may order it to be sold as necessary to
23satisfy the judgment. The court shall determine which real
24estate shall be sold, and the court may determine the order in
25which separate tracts may be sold.
26    (e) Receipt upon Sale. Upon and at the sale of mortgaged

 

 

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1real estate, the person conducting the sale shall give to the
2purchaser a receipt of sale. The receipt shall describe the
3real estate purchased and shall show the amount bid, the amount
4paid, the total amount paid to date and the amount still to be
5paid therefor. An additional receipt shall be given at the time
6of each subsequent payment.
7    (f) Certificate of Sale. Upon payment in full of the amount
8bid, the person conducting the sale shall issue, in duplicate,
9and give to the purchaser a Certificate of Sale. The
10Certificate of Sale shall be in a recordable form, describe the
11real estate purchased, indicate the date and place of sale and
12show the amount paid therefor. The Certificate of Sale shall
13further indicate that it is subject to confirmation by the
14court. The duplicate certificate may be recorded in accordance
15with Section 12-121. The Certificate of Sale shall be freely
16assignable by endorsement thereon.
17    (g) Interest after Sale. Any bid at sale shall be deemed to
18include, without the necessity of a court order, interest at
19the statutory judgment rate on any unpaid portion of the sale
20price from the date of sale to the date of payment.
21(Source: P.A. 96-1045, eff. 7-14-10.)
 
22    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
23    Sec. 15-1508. Report of Sale and Confirmation of Sale.
24    (a) Report. The person conducting the sale shall promptly
25make a report to the court, which report shall include a copy

 

 

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1of all receipts and, if any, certificate of sale.
2    (b) Hearing. Upon motion and notice in accordance with
3court rules applicable to motions generally, which motion shall
4not be made prior to sale, the court shall conduct a hearing to
5confirm the sale. Unless the court finds that (i) a notice
6required in accordance with subsection (c) of Section 15-1507
7was not given, (ii) the terms of sale were unconscionable,
8(iii) the sale was conducted fraudulently, or (iv) that justice
9was otherwise not done, the court shall then enter an order
10confirming the sale. The confirmation order shall include a
11name, address, and telephone number of the holder of the
12certificate of sale or deed issued pursuant to that certificate
13or, if no certificate or deed was issued, the purchaser, whom a
14municipality or county may contact with concerns about the real
15estate. The confirmation order may also:
16        (1) approve the mortgagee's fees and costs arising
17    between the entry of the judgment of foreclosure and the
18    confirmation hearing, those costs and fees to be allowable
19    to the same extent as provided in the note and mortgage and
20    in Section 15-1504;
21        (2) provide for a personal judgment against any party
22    for a deficiency; and
23        (3) determine the priority of the judgments of parties
24    who deferred proving the priority pursuant to subsection
25    (h) of Section 15-1506, but the court shall not defer
26    confirming the sale pending the determination of such

 

 

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1    priority.
2    (b-5) Notice with respect to residential real estate. With
3respect to residential real estate, the notice required under
4subsection (b) of this Section shall be sent to the mortgagor
5even if the mortgagor has previously been held in default. In
6the event the mortgagor has filed an appearance, the notice
7shall be sent to the address indicated on the appearance. In
8all other cases, the notice shall be sent to the mortgagor at
9the common address of the foreclosed property. The notice shall
10be sent by first class mail. Unless the right to possession has
11been previously terminated by the court, the notice shall
12include the following language in 12-point boldface
13capitalized type:
14
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
15
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
16
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
17
ILLINOIS MORTGAGE FORECLOSURE LAW.
18    (b-10) Notice of confirmation order sent to municipality or
19county. With respect to residential real estate, a A copy of
20the confirmation order required under subsection (b) shall be
21sent by first class mail, postage prepaid, to the municipality
22in which the foreclosed property is located, or to the county
23within the boundary of which the foreclosed property is located
24if the foreclosed property is located in an unincorporated
25territory. A municipality or county must clearly publish on its
26website a single address to which such order notice shall be

 

 

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1sent. If a municipality or county does not maintain a website,
2then the municipality or county must publicly post in its main
3office a single address to which such order notice shall be
4sent. In the event that a municipality or county has not
5complied with the publication requirement in this subsection
6(b-10), then such order notice to the municipality or county
7shall be sent by first class mail to the chairperson of the
8county board or county clerk in the case of a county, to the
9mayor or city clerk in the case of a city, to the president of
10the board of trustees or village clerk in the case of a
11village, to the president or town clerk in the case of a town,
12or in the case of Chicago to the city clerk and the alderman
13for the ward in which the property is located provided pursuant
14to Section 2-211 of the Code of Civil Procedure.
15    (b-15) Notice of confirmation order sent to known insurers.
16With respect to residential real estate, a copy of the
17confirmation order required under subsection (b) shall be sent
18by first class mail, postage prepaid, to the last-known
19property insurer of the foreclosed property. Failure to send or
20receive a copy of the order shall not impair or abrogate in any
21way the rights of the mortgagee or purchaser or affect the
22status of the foreclosure proceedings.
23    (c) Failure to Give Notice. If any sale is held without
24compliance with subsection (c) of Section 15-1507 of this
25Article, any party entitled to the notice provided for in
26paragraph (3) of that subsection (c) who was not so notified

 

 

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

 

 

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1entered the judgment shall set aside a sale held pursuant to
2Section 15-1507, upon motion of the mortgagor at any time prior
3to the confirmation of the sale, if the mortgagor proves by a
4preponderance of the evidence that (i) the mortgagor has
5applied for assistance under the Making Home Affordable Program
6established by the United States Department of the Treasury
7pursuant to the Emergency Economic Stabilization Act of 2008,
8as amended by the American Recovery and Reinvestment Act of
92009, and (ii) the mortgaged real estate was sold in material
10violation of the program's requirements for proceeding to a
11judicial sale. The provisions of this subsection (d-5), except
12for this sentence, shall become inoperative on January 1, 2013
13for all actions filed under this Article after December 31,
142012, in which the mortgagor did not apply for assistance under
15the Making Home Affordable Program on or before December 31,
162012.
17    (e) Deficiency Judgment. In any order confirming a sale
18pursuant to the judgment of foreclosure, the court shall also
19enter a personal judgment for deficiency against any party (i)
20if otherwise authorized and (ii) to the extent requested in the
21complaint and proven upon presentation of the report of sale in
22accordance with Section 15-1508. Except as otherwise provided
23in this Article, a judgment may be entered for any balance of
24money that may be found due to the plaintiff, over and above
25the proceeds of the sale or sales, and enforcement may be had
26for the collection of such balance, the same as when the

 

 

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

 

 

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1mortgaged real estate against a person in the confirmation
2order shall not abrogate any right that the purchaser may have
3to possession of the mortgaged real estate and to maintain a
4proceeding against that person for possession under Article 9
5of this Code or subsection (h) of Section 15-1701; and
6possession against a person who (1) has not been personally
7named as a party to the foreclosure and (2) has not been
8provided an opportunity to be heard in the foreclosure
9proceeding may be sought only by maintaining a proceeding under
10Article 9 of this Code or subsection (h) of Section 15-1701.
11(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09;
1296-856, eff. 3-1-10; 96-1245, eff. 7-23-10; revised 9-16-10.)
 
13    Section 99. Effective date. This Section and the changes to
14Sections 15-1506 and 15-1507 of the Code of Civil Procedure
15take effect upon becoming law.