Rep. Michael J. Zalewski

Filed: 11/29/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3583

2    AMENDMENT NO. ______. Amend Senate Bill 3583 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Section 15-1508 as follows:
 
6    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
7    Sec. 15-1508. Report of Sale and Confirmation of Sale.
8    (a) Report. The person conducting the sale shall promptly
9make a report to the court, which report shall include a copy
10of all receipts and, if any, certificate of sale.
11    (b) Hearing. Upon motion and notice in accordance with
12court rules applicable to motions generally, which motion shall
13not be made prior to sale, the court shall conduct a hearing to
14confirm the sale. Unless the court finds that (i) a notice
15required in accordance with subsection (c) of Section 15-1507
16was not given, (ii) the terms of sale were unconscionable,

 

 

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1(iii) the sale was conducted fraudulently, or (iv) justice was
2otherwise not done, the court shall then enter an order
3confirming the sale. The confirmation order shall include a
4name, address, and telephone number of the holder of the
5certificate of sale or deed issued pursuant to that certificate
6or, if no certificate or deed was issued, the purchaser, whom a
7municipality or county may contact with concerns about the real
8estate. The confirmation order may also:
9        (1) approve the mortgagee's fees and costs arising
10    between the entry of the judgment of foreclosure and the
11    confirmation hearing, those costs and fees to be allowable
12    to the same extent as provided in the note and mortgage and
13    in Section 15-1504;
14        (2) provide for a personal judgment against any party
15    for a deficiency; and
16        (3) determine the priority of the judgments of parties
17    who deferred proving the priority pursuant to subsection
18    (h) of Section 15-1506, but the court shall not defer
19    confirming the sale pending the determination of such
20    priority.
21    (b-5) Notice with respect to residential real estate. With
22respect to residential real estate, the notice required under
23subsection (b) of this Section shall be sent to the mortgagor
24even if the mortgagor has previously been held in default. In
25the event the mortgagor has filed an appearance, the notice
26shall be sent to the address indicated on the appearance. In

 

 

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1all other cases, the notice shall be sent to the mortgagor at
2the common address of the foreclosed property. The notice shall
3be sent by first class mail. Unless the right to possession has
4been previously terminated by the court, the notice shall
5include the following language in 12-point boldface
6capitalized type:
7
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
8
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
9
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
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ILLINOIS MORTGAGE FORECLOSURE LAW.
11    (b-10) Notice of confirmation order sent to municipality or
12county. A copy of the confirmation order required under
13subsection (b) shall be sent to the municipality in which the
14foreclosed property is located, or to the county within the
15boundary of which the foreclosed property is located if the
16foreclosed property is located in an unincorporated territory.
17A municipality or county must clearly publish on its website a
18single address to which such notice shall be sent. If a
19municipality or county does not maintain a website, then the
20municipality or county must publicly post in its main office a
21single address to which such notice shall be sent. In the event
22that a municipality or county has not complied with the
23publication requirement in this subsection (b-10), then such
24notice to the municipality or county shall be provided pursuant
25to Section 2-211 of the Code of Civil Procedure.
26    (c) Failure to Give Notice. If any sale is held without

 

 

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1compliance with subsection (c) of Section 15-1507 of this
2Article, any party entitled to the notice provided for in
3paragraph (3) of that subsection (c) who was not so notified
4may, by motion supported by affidavit made prior to
5confirmation of such sale, ask the court which entered the
6judgment to set aside the sale. Any such party shall guarantee
7or secure by bond a bid equal to the successful bid at the
8prior sale, unless the party seeking to set aside the sale is
9the mortgagor, the real estate sold at the sale is residential
10real estate, and the mortgagor occupies the residential real
11estate at the time the motion is filed. In that event, no
12guarantee or bond shall be required of the mortgagor. Any
13subsequent sale is subject to the same notice requirement as
14the original sale.
15    (d) Validity of Sale. Except as provided in subsection (c)
16of Section 15-1508, no sale under this Article shall be held
17invalid or be set aside because of any defect in the notice
18thereof or in the publication of the same, or in the
19proceedings of the officer conducting the sale, except upon
20good cause shown in a hearing pursuant to subsection (b) of
21Section 15-1508. At any time after a sale has occurred, any
22party entitled to notice under paragraph (3) of subsection (c)
23of Section 15-1507 may recover from the mortgagee any damages
24caused by the mortgagee's failure to comply with such paragraph
25(3). Any party who recovers damages in a judicial proceeding
26brought under this subsection may also recover from the

 

 

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1mortgagee the reasonable expenses of litigation, including
2reasonable attorney's fees.
3    (d-5) Making Home Affordable Program. The court that
4entered the judgment shall set aside a sale held pursuant to
5Section 15-1507, upon motion of the mortgagor at any time prior
6to the confirmation of the sale, if the mortgagor proves by a
7preponderance of the evidence that (i) the mortgagor has
8applied for assistance under the Making Home Affordable Program
9established by the United States Department of the Treasury
10pursuant to the Emergency Economic Stabilization Act of 2008,
11as amended by the American Recovery and Reinvestment Act of
122009, and (ii) the mortgaged real estate was sold in material
13violation of the program's requirements for proceeding to a
14judicial sale. The provisions of this subsection (d-5), except
15for this sentence, shall become inoperative on January 1, 2014
162013 for all actions filed under this Article after December
1731, 2013 2012, in which the mortgagor did not apply for
18assistance under the Making Home Affordable Program on or
19before December 31, 2013 2012.
20    (e) Deficiency Judgment. In any order confirming a sale
21pursuant to the judgment of foreclosure, the court shall also
22enter a personal judgment for deficiency against any party (i)
23if otherwise authorized and (ii) to the extent requested in the
24complaint and proven upon presentation of the report of sale in
25accordance with Section 15-1508. Except as otherwise provided
26in this Article, a judgment may be entered for any balance of

 

 

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

 

 

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1or by another generic designation in the complaint.
2    Notwithstanding the preceding paragraph, the failure to
3personally name, include, or seek an award of possession of the
4mortgaged real estate against a person in the confirmation
5order shall not abrogate any right that the purchaser may have
6to possession of the mortgaged real estate and to maintain a
7proceeding against that person for possession under Article 9
8of this Code or subsection (h) of Section 15-1701; and
9possession against a person who (1) has not been personally
10named as a party to the foreclosure and (2) has not been
11provided an opportunity to be heard in the foreclosure
12proceeding may be sought only by maintaining a proceeding under
13Article 9 of this Code or subsection (h) of Section 15-1701.
14    (h) With respect to mortgaged real estate containing 5 or
15more dwelling units, the order confirming the sale shall also
16provide that (i) the mortgagor shall transfer to the purchaser
17the security deposits, if any, that the mortgagor received to
18secure payment of rent or to compensate for damage to the
19mortgaged real estate from any current occupant of a dwelling
20unit of the mortgaged real estate, as well as any statutory
21interest that has not been paid to the occupant, and (ii) the
22mortgagor shall provide an accounting of the security deposits
23that are transferred, including the name and address of each
24occupant for whom the mortgagor holds the deposit and the
25amount of the deposit and any statutory interest.
26(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;

 

 

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196-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
28-26-11.)
 
3    Section 10. "AN ACT concerning business", approved July 25,
42012 (Public Act 97-849), is amended by changing Section 99 as
5follows:
 
6    (P.A. 97-849, Sec. 99)
7    Sec. 99. Effective date. This Act takes effect on January
81, 2013, except that Sections 10, 15, and 25 take effect on the
9effective date of the federal regulations implementing
10Sections 1431, 1432, and 1433 of the federal Dodd-Frank Wall
11Street Reform and Consumer Protection Act.
12(Source: P.A. 97-849.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".