Rep. Elaine Nekritz

Filed: 3/8/2012

 

 


 

 


 
09700HB5001ham002LRB097 17635 AJO 67333 a

1
AMENDMENT TO HOUSE BILL 5001

2    AMENDMENT NO. ______. Amend House Bill 5001 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Sections 15-1503 and 15-1508 as follows:
 
6    (735 ILCS 5/15-1503)  (from Ch. 110, par. 15-1503)
7    Sec. 15-1503. Notice of Foreclosure.
8    (a) A notice of foreclosure, whether the foreclosure is
9initiated by complaint or counterclaim, made in accordance with
10this Section and recorded in the county in which the mortgaged
11real estate is located shall be constructive notice of the
12pendency of the foreclosure to every person claiming an
13interest in or lien on the mortgaged real estate, whose
14interest or lien has not been recorded prior to the recording
15of such notice of foreclosure. Such notice of foreclosure must
16be executed by any party or any party's attorney and shall

 

 

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1include (i) the names of all plaintiffs and the case number,
2(ii) the court in which the action was brought, (iii) the names
3of title holders of record, (iv) a legal description of the
4real estate sufficient to identify it with reasonable
5certainty, (v) a common address or description of the location
6of the real estate and (vi) identification of the mortgage
7sought to be foreclosed. An incorrect common address or
8description of the location, or an immaterial error in the
9identification of a plaintiff or title holder of record, shall
10not invalidate the lis pendens effect of the notice under this
11Section. A notice which complies with this Section shall be
12deemed to comply with Section 2-1901 of the Code of Civil
13Procedure and shall have the same effect as a notice filed
14pursuant to that Section; however, a notice which complies with
15Section 2-1901 shall not be constructive notice unless it also
16complies with the requirements of this Section.
17    (b) With respect to residential real estate, a copy of the
18notice of foreclosure described in subsection (a) of Section
1915-1503 shall be sent by first class mail, postage prepaid, to
20the municipality within the boundary of which the mortgaged
21real estate is located, or to the county within the boundary of
22which the mortgaged real estate is located if the mortgaged
23real estate is located in an unincorporated territory. A
24municipality or county must clearly publish on its website a
25single address to which such notice shall be sent. If a
26municipality or county does not maintain a website, then the

 

 

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1municipality or county must publicly post in its main office a
2single address to which such notice shall be sent. In the event
3that a municipality or county has not complied with the
4publication requirement in this subsection (b), then the copy
5of the such notice to the municipality or county shall be sent
6by first class mail, postage prepaid, to the chairperson of the
7county board or county clerk in the case of a county, to the
8mayor or city clerk in the case of a city, to the president of
9the board of trustees or village clerk in the case of a
10village, or to the president or town clerk in the case of a
11town provided pursuant to Section 2-211 of the Code of Civil
12Procedure. Additionally, if the real estate is located in a
13city with a population of more than 2,000,000, regardless of
14whether that city has complied with the publication requirement
15in this subsection (b), the party must, within 10 days after
16filing the complaint or counterclaim: (i) send by first class
17mail, postage prepaid, a copy of the notice of foreclosure to
18the alderman for the ward in which the real estate is located
19and (ii) file an affidavit with the court attesting to the fact
20that the notice was sent to the alderman for the ward in which
21the real estate is located. The failure to send a copy of the
22notice to the alderman or to file an affidavit as required
23results in the dismissal without prejudice of the complaint or
24counterclaim on a motion of a party or the court. If, after the
25complaint or counterclaim has been dismissed without
26prejudice, the party refiles the complaint or counterclaim,

 

 

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1then the party must again comply with the requirements that the
2party send by first class mail, postage prepaid, the notice to
3the alderman for the ward in which the real estate is located
4and file an affidavit attesting to the fact that the notice was
5sent.
6(Source: P.A. 96-856, eff. 3-1-10.)
 
7    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
8    Sec. 15-1508. Report of Sale and Confirmation of Sale.
9    (a) Report. The person conducting the sale shall promptly
10make a report to the court, which report shall include a copy
11of all receipts and, if any, certificate of sale.
12    (b) Hearing. Upon motion and notice in accordance with
13court rules applicable to motions generally, which motion shall
14not be made prior to sale, the court shall conduct a hearing to
15confirm the sale. Unless the court finds that (i) a notice
16required in accordance with subsection (c) of Section 15-1507
17or a notice to an alderman required in accordance with
18subsection (b) of Section 15-1503 was not given, (ii) the terms
19of sale were unconscionable, (iii) the sale was conducted
20fraudulently, or (iv) justice was otherwise not done, the court
21shall then enter an order confirming the sale. The confirmation
22order shall include a name, address, and telephone number of
23the holder of the certificate of sale or deed issued pursuant
24to that certificate or, if no certificate or deed was issued,
25the purchaser, whom a municipality or county may contact with

 

 

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1concerns about the real estate. The confirmation order may
2also:
3        (1) approve the mortgagee's fees and costs arising
4    between the entry of the judgment of foreclosure and the
5    confirmation hearing, those costs and fees to be allowable
6    to the same extent as provided in the note and mortgage and
7    in Section 15-1504;
8        (2) provide for a personal judgment against any party
9    for a deficiency; and
10        (3) determine the priority of the judgments of parties
11    who deferred proving the priority pursuant to subsection
12    (h) of Section 15-1506, but the court shall not defer
13    confirming the sale pending the determination of such
14    priority.
15    (b-5) Notice with respect to residential real estate. With
16respect to residential real estate, the notice required under
17subsection (b) of this Section shall be sent to the mortgagor
18even if the mortgagor has previously been held in default. In
19the event the mortgagor has filed an appearance, the notice
20shall be sent to the address indicated on the appearance. In
21all other cases, the notice shall be sent to the mortgagor at
22the common address of the foreclosed property. The notice shall
23be sent by first class mail. Unless the right to possession has
24been previously terminated by the court, the notice shall
25include the following language in 12-point boldface
26capitalized type:

 

 

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1
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
2
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
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POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
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ILLINOIS MORTGAGE FORECLOSURE LAW.
5    (b-10) Notice of confirmation order sent to municipality or
6county. With respect to residential real estate, a A copy of
7the confirmation order required under subsection (b) shall be
8sent by first class mail, postage prepaid, to the municipality
9in which the foreclosed property is located, or to the county
10within the boundary of which the foreclosed property is located
11if the foreclosed property is located in an unincorporated
12territory. A municipality or county must clearly publish on its
13website a single address to which such order notice shall be
14sent. If a municipality or county does not maintain a website,
15then the municipality or county must publicly post in its main
16office a single address to which such order notice shall be
17sent. In the event that a municipality or county has not
18complied with the publication requirement in this subsection
19(b-10), then the copy of the order such notice to the
20municipality or county shall be sent by first class mail,
21postage prepaid, to the chairperson of the county board or
22county clerk in the case of a county, to the mayor or city
23clerk in the case of a city, to the president of the board of
24trustees or village clerk in the case of a village, or to the
25president or town clerk in the case of a town provided pursuant
26to Section 2-211 of the Code of Civil Procedure. Additionally,

 

 

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1if the real estate is located in a city with a population of
2more than 2,000,000, regardless of whether that city has
3complied with the publication requirement in this subsection
4(b-10), the party filing the complaint or counterclaim must,
5within 10 days after the entry of the confirmation order: (i)
6send by first class mail, postage prepaid, a copy of the
7confirmation order to the alderman for the ward in which the
8real estate is located and (ii) file an affidavit attesting to
9the fact that a copy of the confirmation order was sent to the
10alderman for the ward in which the real estate is located.
11    (b-15) Notice of confirmation order sent to known insurers.
12With respect to residential real estate, the party filing the
13complaint shall send a copy of the confirmation order required
14under subsection (b) by first class mail, postage prepaid, to
15the last-known property insurer of the foreclosed property.
16Failure to send or receive a copy of the order shall not impair
17or abrogate in any way the rights of the mortgagee or purchaser
18or affect the status of the foreclosure proceedings.
19    (c) Failure to Give Notice. If any sale is held without
20compliance with subsection (c) of Section 15-1507 of this
21Article, any party entitled to the notice provided for in
22paragraph (3) of that subsection (c) who was not so notified
23may, by motion supported by affidavit made prior to
24confirmation of such sale, ask the court which entered the
25judgment to set aside the sale. Any such party shall guarantee
26or secure by bond a bid equal to the successful bid at the

 

 

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

 

 

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1applied for assistance under the Making Home Affordable Program
2established by the United States Department of the Treasury
3pursuant to the Emergency Economic Stabilization Act of 2008,
4as amended by the American Recovery and Reinvestment Act of
52009, and (ii) the mortgaged real estate was sold in material
6violation of the program's requirements for proceeding to a
7judicial sale. The provisions of this subsection (d-5), except
8for this sentence, shall become inoperative on January 1, 2013
9for all actions filed under this Article after December 31,
102012, in which the mortgagor did not apply for assistance under
11the Making Home Affordable Program on or before December 31,
122012.
13    (e) Deficiency Judgment. In any order confirming a sale
14pursuant to the judgment of foreclosure, the court shall also
15enter a personal judgment for deficiency against any party (i)
16if otherwise authorized and (ii) to the extent requested in the
17complaint and proven upon presentation of the report of sale in
18accordance with Section 15-1508. Except as otherwise provided
19in this Article, a judgment may be entered for any balance of
20money that may be found due to the plaintiff, over and above
21the proceeds of the sale or sales, and enforcement may be had
22for the collection of such balance, the same as when the
23judgment is solely for the payment of money. Such judgment may
24be entered, or enforcement had, only in cases where personal
25service has been had upon the persons personally liable for the
26mortgage indebtedness, unless they have entered their

 

 

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

 

 

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1of this Code or subsection (h) of Section 15-1701; and
2possession against a person who (1) has not been personally
3named as a party to the foreclosure and (2) has not been
4provided an opportunity to be heard in the foreclosure
5proceeding may be sought only by maintaining a proceeding under
6Article 9 of this Code or subsection (h) of Section 15-1701.
7    (h) With respect to mortgaged real estate containing 5 or
8more dwelling units, the order confirming the sale shall also
9provide that (i) the mortgagor shall transfer to the purchaser
10the security deposits, if any, that the mortgagor received to
11secure payment of rent or to compensate for damage to the
12mortgaged real estate from any current occupant of a dwelling
13unit of the mortgaged real estate, as well as any statutory
14interest that has not been paid to the occupant, and (ii) the
15mortgagor shall provide an accounting of the security deposits
16that are transferred, including the name and address of each
17occupant for whom the mortgagor holds the deposit and the
18amount of the deposit and any statutory interest.
19(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
2096-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
218-26-11.)".