Rep. Kelly M. Cassidy

Filed: 5/20/2013

 

 


 

 


 
09800SB0056ham001LRB098 02622 DRJ 46088 a

1
AMENDMENT TO SENATE BILL 56

2    AMENDMENT NO. ______. Amend Senate Bill 56 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Sections 9-121, 9-205, 9-207, 15-1202.5, 15-1501,
615-1506, 15-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704 and
7by adding Sections 9-207.5, 15-1224, and 15-1225 as follows:
 
8    (735 ILCS 5/9-121)
9    Sec. 9-121. Sealing of court file.
10    (a) Definition. As used in this Section, "court file" means
11the court file created when a forcible entry and detainer
12action is filed with the court.
13    (b) Discretionary sealing of court file. The court may
14order that a court file in a forcible entry and detainer action
15be placed under seal if the court finds that the plaintiff's
16action is sufficiently without a basis in fact or law, which

 

 

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1may include a lack of jurisdiction, that placing the court file
2under seal is clearly in the interests of justice, and that
3those interests are not outweighed by the public's interest in
4knowing about the record.
5    (c) Mandatory sealing of court file. The court file
6relating to a forcible entry and detainer action brought
7against a tenant under Section 9-207.5 of this Code or as set
8forth in subdivision (h)(6) of Section 15-1701 of this Code
9shall be placed under seal who would have lawful possession of
10the premises but for the foreclosure on the property shall be
11sealed pursuant to Section 15-1701.
12(Source: P.A. 96-1131, eff. 7-20-10.)
 
13    (735 ILCS 5/9-205)  (from Ch. 110, par. 9-205)
14    Sec. 9-205. Notice to terminate tenancy from year to year.
15Except as provided in Section 9-206 and Section 9-207.5 of this
16Act, in all cases of tenancy from year to year, 60 days'
17notice, in writing, shall be sufficient to terminate the
18tenancy at the end of the year. The notice may be given at any
19time within 4 months preceding the last 60 days of the year.
20(Source: P.A. 82-280.)
 
21    (735 ILCS 5/9-207)  (from Ch. 110, par. 9-207)
22    Sec. 9-207. Notice to terminate tenancy for less than a
23year.
24    (a) Except as provided in Section 9-207.5 of this Code, in

 

 

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1In all cases of tenancy from week to week, where the tenant
2holds over without special agreement, the landlord may
3terminate the tenancy by 7 days' notice, in writing, and may
4maintain an action for forcible entry and detainer or
5ejectment.
6    (b) Except as provided in Section 9-207.5 of this Code, in
7In all cases of tenancy for any term less than one year, other
8than tenancy from week to week, where the tenant holds over
9without special agreement, the landlord may terminate the
10tenancy by 30 days' notice, in writing, and may maintain an
11action for forcible entry and detainer or ejectment.
12(Source: P.A. 82-280.)
 
13    (735 ILCS 5/9-207.5 new)
14    Sec. 9-207.5. Termination of bona fide leases in
15residential real estate in foreclosure.
16    (a) A mortgagee, receiver, holder of the certificate of
17sale, holder of the deed issued pursuant to that certificate,
18or, if no certificate or deed was issued, the purchaser at a
19judicial sale under Section 15-1507 of this Code, who assumes
20control of the residential real estate in foreclosure, as
21defined in Section 15-1225 of this Code, may terminate a bona
22fide lease, as defined in Section 15-1224 of this Code, only:
23(i) at the end of the term of the bona fide lease, by no less
24than 90 days' written notice or (ii) in the case of a bona fide
25lease that is for a month-to-month or week-to-week term, by no

 

 

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1less than 90 days' written notice.
2    (b) Notwithstanding the provisions of subsection (a) of
3this Section, an individual who assumes control of residential
4real estate in foreclosure pursuant to a judicial sale and who
5will occupy a dwelling unit of the residential real estate in
6foreclosure as his or her primary residence may terminate the
7bona fide lease for the dwelling unit subject to the 90-day
8notice requirement of subsection (a) of this Section.
9    (c) Nothing in this Section or Section 15-1224 of this Code
10shall abrogate the rights of a mortgagee, receiver, holder of
11the certificate of sale, holder of the deed issued pursuant to
12that certificate, or, if no certificate or deed was issued, the
13purchaser at a judicial sale, who assumes control of the
14residential real estate in foreclosure to terminate a bona fide
15lease of a dwelling unit in residential real estate in
16foreclosure under Section 9-118, 9-119, 9-120, 9-201, 9-202,
179-203, 9-204, 9-209, or 9-210 of this Code.
 
18    (735 ILCS 5/15-1202.5)
19    Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
209-207.5, 15-1506, 15-1508, 15-1508.5, 15-1225, 15-1701,
2115-1703, and 15-1704 only, "dwelling unit" means a room or
22suite of rooms providing complete, independent living
23facilities for at least one person, including permanent
24provisions for sanitation, cooking, eating, sleeping, and
25other activities routinely associated with daily life.

 

 

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1(Source: P.A. 96-111, eff. 10-29-09; 97-575, eff. 8-26-11.)
 
2    (735 ILCS 5/15-1224 new)
3    Sec. 15-1224. Bona fide lease.
4    (a) For purposes of Sections 9-207.5, 15-1225, 15-1506,
515-1508, and 15-1701 of this Code only, the term "bona fide
6lease" means a lease of a dwelling unit in residential real
7estate in foreclosure for which:
8        (1) the mortgagor or the child, spouse, or parent of
9    the mortgagor is not the tenant;
10        (2) the lease was the result of an arms-length
11    transaction;
12        (3) the lease requires the receipt of rent that is not
13    substantially less than fair market rent for the property
14    or the rent is reduced or subsidized pursuant to a federal,
15    State, or local subsidy; and
16        (4) either (i) the lease was entered into or renewed on
17    or before the date of the filing of the lis pendens on the
18    residential real estate in foreclosure pursuant to Section
19    2-1901 of this Code or (ii) the lease was entered into or
20    renewed after the date of the filing of the lis pendens on
21    the residential real estate in foreclosure and before the
22    date of the judicial sale of the residential real estate in
23    foreclosure, and the term of the lease is for one year or
24    less.
25    (b) A written lease for a term exceeding one year that is

 

 

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1entered into or renewed after the date of the filing of the lis
2pendens on the residential real estate in foreclosure pursuant
3to Section 2-1901 of this Code and before the date of the
4judicial sale of the residential real estate in foreclosure
5that otherwise meets the requirements of subsection (a) of this
6Section shall be deemed to be a bona fide lease for a term of
7one year.
8    (c) An oral lease entered into at any time before the date
9of the judicial sale of the residential real estate in
10foreclosure that otherwise meets the requirements of
11subsection (a) of this Section shall be deemed to be a bona
12fide lease for a month-to-month term, unless the lessee proves
13by a preponderance of evidence that the oral lease is for a
14longer term. In no event shall an oral lease be deemed to be a
15bona fide lease for a term of more than one year.
16    (d) A written or oral lease entered into on or after the
17date of the judicial sale of the residential real estate in
18foreclosure and before the date of the court order confirming
19the judicial sale that otherwise meets the requirements of
20subsection (a) of this Section shall be deemed to be a bona
21fide lease for a month-to-month term.
22    (e) Notwithstanding paragraph (1) of subsection (a) of this
23Section, a child, spouse, or parent of the mortgagor may prove
24by a preponderance of evidence that a written or oral lease
25that otherwise meets the requirements of subsection (a) of this
26Section is a bona fide lease.
 

 

 

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1    (735 ILCS 5/15-1225 new)
2    Sec. 15-1225. Residential real estate in foreclosure. For
3purposes of Sections 9-207.5, 15-1224, 15-1506, 15-1508, and
415-1701 of this Code only, the term "residential real estate in
5foreclosure" means any real estate, except a single tract of
6agricultural real estate consisting of more than 40 acres,
7which is improved with a single family residence or residential
8condominium units or a multiple dwelling structure containing
9single family dwelling units for one or more families living
10independently of one another, for which an action to foreclose
11the real estate: (1) has commenced and is pending; (2) was
12pending when the bona fide lease was entered into or renewed;
13or (3) was commenced after the bona fide lease was entered into
14or renewed.
 
15    (735 ILCS 5/15-1501)  (from Ch. 110, par. 15-1501)
16    Sec. 15-1501. Parties.
17    (a) Necessary Parties. For the purposes of Section 2-405 of
18the Code of Civil Procedure, only (i) the mortgagor and (ii)
19other persons (but not guarantors) who owe payment of
20indebtedness or the performance of other obligations secured by
21the mortgage and against whom personal liability is asserted
22shall be necessary parties defendant in a foreclosure. The
23court may proceed to adjudicate their respective interests, but
24any disposition of the mortgaged real estate shall be subject

 

 

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1to (i) the interests of all other persons not made a party or
2(ii) interests in the mortgaged real estate not otherwise
3barred or terminated in the foreclosure.
4    (b) Permissible Parties. Any party may join as a party any
5other person, although such person is not a necessary party,
6including, without limitation, the following:
7        (1) All persons having a possessory interest in the
8    mortgaged real estate;
9        (2) A mortgagor's spouse who has waived the right of
10    homestead;
11        (3) A trustee holding an interest in the mortgaged real
12    estate or a beneficiary of such trust;
13        (4) The owner or holder of a note secured by a trust
14    deed;
15        (5) Guarantors, provided that in a foreclosure any such
16    guarantor also may be joined as a party in a separate count
17    in an action on such guarantor's guaranty;
18        (6) The State of Illinois or any political subdivision
19    thereof, where a foreclosure involves real estate upon
20    which the State or such subdivision has an interest or
21    claim for lien, in which case "An Act in relation to
22    immunity for the State of Illinois", approved December 10,
23    1971, as amended, shall not be effective;
24        (7) The United States of America or any agency or
25    department thereof where a foreclosure involves real
26    estate upon which the United States of America or such

 

 

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1    agency or department has an interest or a claim for lien;
2        (8) Any assignee of leases or rents relating to the
3    mortgaged real estate;
4        (9) Any person who may have a lien under the Mechanic's
5    Lien Act; and
6        (10) Any other mortgagee or claimant.
7    (c) Unknown Owners. Any unknown owner may be made a party
8in accordance with Section 2-413 of the Code of Civil
9Procedure.
10    (d) Right to Become Party. Any person who has or claims an
11interest in real estate which is the subject of a foreclosure
12or an interest in any debt secured by the mortgage shall have
13an unconditional right to appear and become a party in such
14foreclosure in accordance with subsection (e) of Section
1515-1501, provided, that neither such appearance by a lessee
16whose interest in the real estate is subordinate to the
17interest being foreclosed, nor the act of making such lessee a
18party, shall result in the termination of the lessee's lease
19unless the termination of the lease or lessee's interest in the
20mortgaged real estate is specifically ordered by the court in
21the judgment of foreclosure.
22    (e) Time of Intervention.
23        (1) Of Right. A person not a party, other than a
24    nonrecord claimant given notice in accordance with
25    paragraph (2) of subsection (c) of Section 15-1502, who has
26    or claims an interest in the mortgaged real estate may

 

 

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1    appear and become a party at any time prior to the entry of
2    judgment of foreclosure. A nonrecord claimant given such
3    notice may appear and become a party at any time prior to
4    the earlier of (i) the entry of a judgment of foreclosure
5    or (ii) 30 days after such notice is given.
6        (2) In Court's Discretion. After the right to intervene
7    expires and prior to the sale in accordance with the
8    judgment, the court may permit a person who has or claims
9    an interest in the mortgaged real estate to appear and
10    become a party on such terms as the court may deem just.
11        (3) Later Right. After the sale of the mortgaged real
12    estate in accordance with a judgment of foreclosure and
13    prior to the entry of an order confirming the sale, a
14    person who has or claims an interest in the mortgaged real
15    estate, may appear and become a party, on such terms as the
16    court may deem just, for the sole purpose of claiming an
17    interest in the proceeds of sale. Any such party shall be
18    deemed a party from the commencement of the foreclosure,
19    and the interest of such party in the real estate shall be
20    subject to all orders and judgments entered in the
21    foreclosure.
22        (4) Termination of Interest. Except as provided in
23    Section 15-1501(d), the interest of any person who is
24    allowed to appear and become a party shall be terminated,
25    and the interest of such party in the real estate shall
26    attach to the proceeds of sale.

 

 

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1    (f) Separate Actions. Any mortgagee or claimant, other than
2the mortgagee who commences a foreclosure, whose interest in
3the mortgaged real estate is recorded prior to the filing of a
4notice of foreclosure in accordance with this Article but who
5is not made a party to such foreclosure, shall not be barred
6from filing a separate foreclosure (i) as an intervening
7defendant or counterclaimant in accordance with subsections
8(d) and (e) of Section 15-1501 if a judgment of foreclosure has
9not been entered in the original foreclosure or (ii) in a new
10foreclosure subsequent to the entry of a judgment of
11foreclosure in the original foreclosure.
12    (g) Service on the State of Illinois. When making the State
13of Illinois a party to a foreclosure, summons may be served by
14sending, by registered or certified mail, a copy of the summons
15and the complaint to the Attorney General. The complaint shall
16set forth with particularity the nature of the interest or lien
17of the State of Illinois. If such interest or lien appears in a
18recorded instrument, the complaint must state the document
19number of the instrument and the office wherein it was
20recorded.
21    (h) Special Representatives. The court is not required to
22appoint a special representative for a deceased mortgagor for
23the purpose of defending the action, if there is a living
24person that holds a 100% interest in the property that is the
25subject of the action, by virtue of being the deceased
26mortgagor's surviving joint tenant or surviving tenant by the

 

 

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1entirety. In no event may a deficiency judgment be sought or
2entered in the foreclosure case pursuant to subsection (e) of
3Section 15-1508 against a deceased mortgagor.
4(Source: P.A. 88-265.)
 
5    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
6    Sec. 15-1506. Judgment.
7    (a) Evidence. In the trial of a foreclosure, the evidence
8to support the allegations of the complaint shall be taken in
9open court, except:
10        (1) where an allegation of fact in the complaint is not
11    denied by a party's verified answer or verified
12    counterclaim, or where a party pursuant to subsection (b)
13    of Section 2-610 of the Code of Civil Procedure states, or
14    is deemed to have stated, in its pleading that it has no
15    knowledge of such allegation sufficient to form a belief
16    and attaches the required affidavit, a sworn verification
17    of the complaint or a separate affidavit setting forth such
18    fact is sufficient evidence thereof against such party and
19    no further evidence of such fact shall be required; and
20        (2) where all the allegations of fact in the complaint
21    have been proved by verification of the complaint or
22    affidavit, the court upon motion supported by an affidavit
23    stating the amount which is due the mortgagee, shall enter
24    a judgment of foreclosure as requested in the complaint.
25    (b) Instruments. In all cases the evidence of the

 

 

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1indebtedness and the mortgage foreclosed shall be exhibited to
2the court and appropriately marked, and copies thereof shall be
3filed with the court.
4    (c) Summary and Default Judgments. Nothing in this Section
515-1506 shall prevent a party from obtaining a summary or
6default judgment authorized by Article II of the Code of Civil
7Procedure.
8    (d) Notice of Entry of Default. When any judgment in a
9foreclosure is entered by default, notice of such judgment
10shall be given in accordance with Section 2-1302 of the Code of
11Civil Procedure.
12    (e) Matters Required in Judgment. A judgment of foreclosure
13shall include the last date for redemption and all rulings of
14the court entered with respect to each request for relief set
15forth in the complaint. The omission of the date for redemption
16shall not extend the time for redemption or impair the validity
17of the judgment.
18    (f) Special Matters in Judgment. Without limiting the
19general authority and powers of the court, special matters may
20be included in the judgment of foreclosure if sought by a party
21in the complaint or by separate motion. Such matters may
22include, without limitation:
23        (1) a manner of sale other than public auction;
24        (2) a sale by sealed bid;
25        (3) an official or other person who shall be the
26    officer to conduct the sale other than the one customarily

 

 

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

 

 

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1    other contingencies will be allowed;
2        (14) such other matters as approved by the court to
3    ensure sale of the real estate for the most commercially
4    favorable price for the type of real estate involved.
5    (g) Agreement of the Parties. If all of the parties agree
6in writing on the minimum price and that the real estate may be
7sold to the first person who offers in writing to purchase the
8real estate for such price, and on such other commercially
9reasonable terms and conditions as the parties may agree, then
10the court shall order the real estate to be sold on such terms,
11subject to confirmation of the sale in accordance with Section
1215-1508.
13    (h) Postponement of Proving Priority. With the approval of
14the court prior to the entry of the judgment of foreclosure, a
15party claiming an interest in the proceeds of the sale of the
16mortgaged real estate may defer proving the priority of such
17interest until the hearing to confirm the sale.
18    (i) Effect of Judgment and Lien.
19        (1) Upon the entry of the judgment of foreclosure, all
20    rights of a party in the foreclosure against the mortgagor
21    provided for in the judgment of foreclosure or this Article
22    shall be secured by a lien on the mortgaged real estate,
23    which lien shall have the same priority as the claim to
24    which the judgment relates and shall be terminated upon
25    confirmation of a judicial sale in accordance with this
26    Article.

 

 

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1        (2) Upon the entry of the judgment of foreclosure, the
2    rights in the real estate subject to the judgment of
3    foreclosure of (i) all persons made a party in the
4    foreclosure and (ii) all nonrecord claimants given notice
5    in accordance with paragraph (2) of subsection (c) of
6    Section 15-1502, shall be solely as provided for in the
7    judgment of foreclosure and in this Article.
8        (3) Entry of a judgment of foreclosure does not
9    terminate or otherwise affect a bona fide lease of a
10    dwelling unit in residential real estate in foreclosure,
11    whether or not the lessee has been made a party in the
12    foreclosure.
13(Source: P.A. 85-907.)
 
14    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
15    (Text of Section before amendment by P.A. 97-1164)
16    Sec. 15-1508. Report of Sale and Confirmation of Sale.
17    (a) Report. The person conducting the sale shall promptly
18make a report to the court, which report shall include a copy
19of all receipts and, if any, certificate of sale.
20    (b) Hearing. Upon motion and notice in accordance with
21court rules applicable to motions generally, which motion shall
22not be made prior to sale, the court shall conduct a hearing to
23confirm the sale. Unless the court finds that (i) a notice
24required in accordance with subsection (c) of Section 15-1507
25was 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
10
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

 

 

09800SB0056ham001- 20 -LRB098 02622 DRJ 46088 a

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
16for all actions filed under this Article after December 31,
172013, in which the mortgagor did not apply for assistance under
18the Making Home Affordable Program on or before December 31,
192013.
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

 

 

09800SB0056ham001- 21 -LRB098 02622 DRJ 46088 a

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. No order of possession issued under
25this Section shall be entered against a lessee with a bona fide
26lease of a dwelling unit in residential real estate in

 

 

09800SB0056ham001- 22 -LRB098 02622 DRJ 46088 a

1foreclosure, whether or not the lessee has been made a party in
2the foreclosure. An and in the order of possession and shall
3not be entered and enforced against any person who is only
4generically described as an unknown owner or nonrecord claimant
5or by another generic designation in the complaint.
6    Notwithstanding the preceding paragraph, the failure to
7personally name, include, or seek an award of possession of the
8mortgaged real estate against a person in the confirmation
9order shall not abrogate any right that the purchaser may have
10to possession of the mortgaged real estate and to maintain a
11proceeding against that person for possession under Article IX
129 of this Code or, if applicable, under subsection (h) of
13Section 15-1701; and possession against a person who (1) has
14not been personally named as a party to the foreclosure and (2)
15has not been provided an opportunity to be heard in the
16foreclosure proceeding may be sought only by maintaining a
17proceeding under Article IX 9 of this Code or, if applicable,
18under subsection (h) of Section 15-1701.
19    (h) With respect to mortgaged real estate containing 5 or
20more dwelling units, the order confirming the sale shall also
21provide that (i) the mortgagor shall transfer to the purchaser
22the security deposits, if any, that the mortgagor received to
23secure payment of rent or to compensate for damage to the
24mortgaged real estate from any current occupant of a dwelling
25unit of the mortgaged real estate, as well as any statutory
26interest that has not been paid to the occupant, and (ii) the

 

 

09800SB0056ham001- 23 -LRB098 02622 DRJ 46088 a

1mortgagor shall provide an accounting of the security deposits
2that are transferred, including the name and address of each
3occupant for whom the mortgagor holds the deposit and the
4amount of the deposit and any statutory interest.
5(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
696-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
78-26-11; 97-1159, eff. 1-29-13.)
 
8    (Text of Section after amendment by P.A. 97-1164)
9    Sec. 15-1508. Report of Sale and Confirmation of Sale.
10    (a) Report. The person conducting the sale shall promptly
11make a report to the court, which report shall include a copy
12of all receipts and, if any, certificate of sale.
13    (b) Hearing. Upon motion and notice in accordance with
14court rules applicable to motions generally, which motion shall
15not be made prior to sale, the court shall conduct a hearing to
16confirm the sale. Unless the court finds that (i) a notice
17required in accordance with subsection (c) of Section 15-1507
18was not given, (ii) the terms of sale were unconscionable,
19(iii) the sale was conducted fraudulently, or (iv) justice was
20otherwise not done, the court shall then enter an order
21confirming the sale. The confirmation order shall include a
22name, address, and telephone number of the holder of the
23certificate of sale or deed issued pursuant to that certificate
24or, if no certificate or deed was issued, the purchaser, whom a
25municipality or county may contact with concerns about the real

 

 

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1estate. The confirmation order may also:
2        (1) approve the mortgagee's fees and costs arising
3    between the entry of the judgment of foreclosure and the
4    confirmation hearing, those costs and fees to be allowable
5    to the same extent as provided in the note and mortgage and
6    in Section 15-1504;
7        (2) provide for a personal judgment against any party
8    for a deficiency; and
9        (3) determine the priority of the judgments of parties
10    who deferred proving the priority pursuant to subsection
11    (h) of Section 15-1506, but the court shall not defer
12    confirming the sale pending the determination of such
13    priority.
14    (b-3) Hearing to confirm sale of abandoned residential
15property. Upon motion and notice by first-class mail to the
16last known address of the mortgagor, which motion shall be made
17prior to the sale and heard by the court at the earliest
18practicable time after conclusion of the sale, and upon the
19posting at the property address of the notice required by
20paragraph (2) of subsection (l) of Section 15-1505.8, the court
21shall enter an order confirming the sale of the abandoned
22residential property, unless the court finds that a reason set
23forth in items (i) through (iv) of subsection (b) of this
24Section exists for not approving the sale, or an order is
25entered pursuant to subsection (h) of Section 15-1505.8. The
26confirmation order also may address the matters identified in

 

 

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1items (1) through (3) of subsection (b) of this Section. The
2notice required under subsection (b-5) of this Section shall
3not be required.
4    (b-5) Notice with respect to residential real estate. With
5respect to residential real estate, the notice required under
6subsection (b) of this Section shall be sent to the mortgagor
7even if the mortgagor has previously been held in default. In
8the event the mortgagor has filed an appearance, the notice
9shall be sent to the address indicated on the appearance. In
10all other cases, the notice shall be sent to the mortgagor at
11the common address of the foreclosed property. The notice shall
12be sent by first class mail. Unless the right to possession has
13been previously terminated by the court, the notice shall
14include the following language in 12-point boldface
15capitalized type:
16
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
17
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
18
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
19
ILLINOIS MORTGAGE FORECLOSURE LAW.
20    (b-10) Notice of confirmation order sent to municipality or
21county. A copy of the confirmation order required under
22subsection (b) shall be sent to the municipality in which the
23foreclosed property is located, or to the county within the
24boundary of which the foreclosed property is located if the
25foreclosed property is located in an unincorporated territory.
26A municipality or county must clearly publish on its website a

 

 

09800SB0056ham001- 26 -LRB098 02622 DRJ 46088 a

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

 

 

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

 

 

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1to the confirmation of the sale, if the mortgagor proves by a
2preponderance of the evidence that (i) the mortgagor has
3applied for assistance under the Making Home Affordable Program
4established by the United States Department of the Treasury
5pursuant to the Emergency Economic Stabilization Act of 2008,
6as amended by the American Recovery and Reinvestment Act of
72009, and (ii) the mortgaged real estate was sold in material
8violation of the program's requirements for proceeding to a
9judicial sale. The provisions of this subsection (d-5), except
10for this sentence, shall become inoperative on January 1, 2014
11for all actions filed under this Article after December 31,
122013, in which the mortgagor did not apply for assistance under
13the Making Home Affordable Program on or before December 31,
142013.
15    (e) Deficiency Judgment. In any order confirming a sale
16pursuant to the judgment of foreclosure, the court shall also
17enter a personal judgment for deficiency against any party (i)
18if otherwise authorized and (ii) to the extent requested in the
19complaint and proven upon presentation of the report of sale in
20accordance with Section 15-1508. Except as otherwise provided
21in this Article, a judgment may be entered for any balance of
22money that may be found due to the plaintiff, over and above
23the proceeds of the sale or sales, and enforcement may be had
24for the collection of such balance, the same as when the
25judgment is solely for the payment of money. Such judgment may
26be entered, or enforcement had, only in cases where personal

 

 

09800SB0056ham001- 29 -LRB098 02622 DRJ 46088 a

1service has been had upon the persons personally liable for the
2mortgage indebtedness, unless they have entered their
3appearance in the foreclosure action.
4    (f) Satisfaction. Upon confirmation of the sale, the
5judgment stands satisfied to the extent of the sale price less
6expenses and costs. If the order confirming the sale includes a
7deficiency judgment, the judgment shall become a lien in the
8manner of any other judgment for the payment of money.
9    (g) The order confirming the sale shall include,
10notwithstanding any previous orders awarding possession during
11the pendency of the foreclosure, an award to the purchaser of
12possession of the mortgaged real estate, as of the date 30 days
13after the entry of the order, against the parties to the
14foreclosure whose interests have been terminated.
15    An order of possession authorizing the removal of a person
16from possession of the mortgaged real estate shall be entered
17and enforced only against those persons personally named as
18individuals in the complaint or the petition under subsection
19(h) of Section 15-1701. No order of possession issued under
20this Section shall be entered against a lessee with a bona fide
21lease of a dwelling unit in residential real estate in
22foreclosure, whether or not the lessee has been made a party in
23the foreclosure. An and in the order of possession and shall
24not be entered and enforced against any person who is only
25generically described as an unknown owner or nonrecord claimant
26or by another generic designation in the complaint.

 

 

09800SB0056ham001- 30 -LRB098 02622 DRJ 46088 a

1    Notwithstanding the preceding paragraph, the failure to
2personally name, include, or seek an award of possession of the
3mortgaged real estate against a person in the confirmation
4order shall not abrogate any right that the purchaser may have
5to possession of the mortgaged real estate and to maintain a
6proceeding against that person for possession under Article IX
79 of this Code or, if applicable, under subsection (h) of
8Section 15-1701; and possession against a person who (1) has
9not been personally named as a party to the foreclosure and (2)
10has not been provided an opportunity to be heard in the
11foreclosure proceeding may be sought only by maintaining a
12proceeding under Article IX 9 of this Code or, if applicable,
13under 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;

 

 

09800SB0056ham001- 31 -LRB098 02622 DRJ 46088 a

196-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
28-26-11; 97-1159, eff. 1-29-13; 97-1164, eff. 6-1-13; revised
32-22-13.)
 
4    (735 ILCS 5/15-1508.5)
5    Sec. 15-1508.5. Notice by holder or purchaser to known
6occupants of dwelling units of mortgaged real estate.
7    (a) The holder of the certificate of sale or deed issued
8pursuant to that certificate or, if no certificate or deed was
9issued, the purchaser, shall:
10        (1) following the judicial sale under Section 15-1507,
11    but no later than 21 days after the confirmation of sale
12    under Section 15-1508, make a good faith effort to
13    ascertain the identities and addresses of all occupants of
14    dwelling units of the mortgaged real estate; and
15        (2) following the order confirming sale under Section
16    15-1508, but no later than 21 days after the order
17    confirming sale, notify all known occupants of dwelling
18    units of the mortgaged real estate that the holder or
19    purchaser has acquired the mortgaged real estate. The
20    notice shall be in writing and shall:
21            (i) identify the occupant being served by the name
22        known to the holder or purchaser;
23            (ii) inform the occupant that the mortgaged real
24        estate at which the dwelling unit is located is the
25        subject of a foreclosure and that control of the

 

 

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1        mortgaged real estate has changed;
2            (iii) provide the name, address, and telephone
3        number of an individual or entity whom the occupants
4        may contact with concerns about the mortgaged real
5        estate or to request repairs of that property;
6            (iv) include the following language, or language
7        that is substantially similar: "This is NOT a notice to
8        vacate the premises. You may wish to contact a lawyer
9        or your local legal aid or housing counseling agency to
10        discuss any rights that you may have."; and
11            (v) include the name of the case, the case number,
12        and the court where the order confirming the sale has
13        been entered; and .
14            (vi) provide instructions on the method of payment
15        of future rent, if applicable.
16    (b) The written notice required by subsection (a) of this
17Section shall be served by delivering a copy thereof to the
18known occupant, or by leaving the same with some person of the
19age of 13 years or upwards who is residing on or in possession
20of the premises, or by sending a copy of the notice to the
21known occupant by first-class mail, addressed to the occupant
22by the name known to the holder or purchaser.
23    (c) In the event that the holder or purchaser ascertains
24the identity and address of an occupant of a dwelling unit of
25the mortgaged real estate more than 21 days after the
26confirmation of sale under Section 15-1508, the holder or

 

 

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1purchaser shall provide the notice required by subparagraph (2)
2of subsection (a) within 7 days of ascertaining the identity
3and address of the occupant.
4    (d)(i) A holder or purchaser who fails to comply with
5subsections (a), (b), and (c) may not collect any rent due and
6owing from a known occupant, or terminate a known occupant's
7tenancy for non-payment of such rent, until the holder or
8purchaser has served the notice described in paragraph (2) of
9subsection (a) of this Section upon the known occupant. After
10providing such notice, the holder or purchaser may collect any
11and all rent otherwise due and owing the holder or purchaser
12from the known occupant and may terminate the known occupant's
13tenancy for non-payment of such rent if the holder or purchaser
14otherwise has such right to terminate.
15    (ii) An occupant who previously paid rent for the current
16rental period to the mortgagor, or other entity with the
17authority to operate, manage, and conserve the mortgaged real
18estate at the time of payment, shall not be held liable for
19that rent by the holder or purchaser, and the occupant's
20tenancy shall not be terminated for non-payment of rent for
21that rental period.
22    (e) Within 21 days of the confirmation of sale under
23Section 15-1508, the holder or purchaser shall post a written
24notice on the primary entrance of each dwelling unit subject to
25the foreclosure action. This notice shall:
26        (i) inform occupant that the dwelling unit is the

 

 

09800SB0056ham001- 34 -LRB098 02622 DRJ 46088 a

1    subject of a foreclosure action and that control of the
2    mortgaged real estate has changed;
3        (ii) include the following language: "This is NOT a
4    notice to vacate the premises."; and
5        (iii) provide the name, address, and telephone number
6    of the individual or entity whom occupants may contact with
7    concerns about the mortgaged real estate or to request
8    repairs of the property; and .
9        (iv) provide instructions on the method of payment of
10    future rent, if applicable.
11    (f)(i) The provisions of subsection (d) of this Section
12shall be the exclusive remedy for the failure of a holder or
13purchaser to provide notice to a known occupant under this
14Section.
15    (ii) This Section shall not abrogate any right that a
16holder or purchaser may have to possession of the mortgaged
17real estate and to maintain a proceeding against an occupant of
18a dwelling unit for possession under Article IX 9 of this Code
19or subsection (h) of Section 15-1701.
20    (iii) In the event that the holder or purchaser is a
21mortgagee in possession of the mortgaged real estate pursuant
22to Section 15-1703 at the time of the confirmation of sale and
23has complied with requirements of subsection (a-5) of Section
2415-1703, the holder or purchaser is excused from the
25requirements of subsections (a) and (e) of this Section.
26    (iv) A holder or purchaser is not required to provide the

 

 

09800SB0056ham001- 35 -LRB098 02622 DRJ 46088 a

1notice required by this Section to a mortgagor or party against
2whom an order of possession has been entered authorizing the
3removal of the mortgagor or party pursuant to subsection (g) of
4Section 15-1508.
5(Source: P.A. 96-111, eff. 10-29-09.)
 
6    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
7    Sec. 15-1701. Right to possession.
8    (a) General. The provisions of this Article shall govern
9the right to possession of the mortgaged real estate during
10foreclosure. Possession under this Article includes physical
11possession of the mortgaged real estate to the same extent to
12which the mortgagor, absent the foreclosure, would have been
13entitled to physical possession. For the purposes of Part 17,
14real estate is residential real estate only if it is
15residential real estate at the time the foreclosure is
16commenced.
17    (b) Pre-Judgment. Prior to the entry of a judgment of
18foreclosure:
19        (1) In the case of residential real estate, the
20    mortgagor shall be entitled to possession of the real
21    estate except if (i) the mortgagee shall object and show
22    good cause, (ii) the mortgagee is so authorized by the
23    terms of the mortgage or other written instrument, and
24    (iii) the court is satisfied that there is a reasonable
25    probability that the mortgagee will prevail on a final

 

 

09800SB0056ham001- 36 -LRB098 02622 DRJ 46088 a

1    hearing of the cause, the court shall upon request place
2    the mortgagee in possession. If the residential real estate
3    consists of more than one dwelling unit, then for the
4    purpose of this Part residential real estate shall mean
5    only that dwelling unit or units occupied by persons
6    described in clauses (i), (ii) and (iii) of Section
7    15-1219.
8        (2) In all other cases, if (i) the mortgagee is so
9    authorized by the terms of the mortgage or other written
10    instrument, and (ii) the court is satisfied that there is a
11    reasonable probability that the mortgagee will prevail on a
12    final hearing of the cause, the mortgagee shall upon
13    request be placed in possession of the real estate, except
14    that if the mortgagor shall object and show good cause, the
15    court shall allow the mortgagor to remain in possession.
16    (c) Judgment Through 30 Days After Sale Confirmation. After
17the entry of a judgment of foreclosure and through the 30th day
18after a foreclosure sale is confirmed:
19        (1) Subsection (b) of Section 15-1701 shall be
20    applicable, regardless of the provisions of the mortgage or
21    other instrument, except that after a sale pursuant to the
22    judgment the holder of the certificate of sale (or, if
23    none, the purchaser at the sale) shall have the mortgagee's
24    right to be placed in possession, with all rights and
25    duties of a mortgagee in possession under this Article.
26        (2) Notwithstanding paragraph (1) of subsection (b)

 

 

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1    and paragraph (1) of subsection (c) of Section 15-1701,
2    upon request of the mortgagee, a mortgagor of residential
3    real estate shall not be allowed to remain in possession
4    between the expiration of the redemption period and through
5    the 30th day after sale confirmation unless (i) the
6    mortgagor pays to the mortgagee or such holder or
7    purchaser, whichever is applicable, monthly the lesser of
8    the interest due under the mortgage calculated at the
9    mortgage rate of interest applicable as if no default had
10    occurred or the fair rental value of the real estate, or
11    (ii) the mortgagor otherwise shows good cause. Any amounts
12    paid by the mortgagor pursuant to this subsection shall be
13    credited against the amounts due from the mortgagor.
14    (d) After 30 Days After Sale Confirmation. The holder of
15the certificate of sale or deed issued pursuant to that
16certificate or, if no certificate or deed was issued, the
17purchaser, except to the extent the holder or purchaser may
18consent otherwise, shall be entitled to possession of the
19mortgaged real estate, as of the date 30 days after the order
20confirming the sale is entered, against those parties to the
21foreclosure whose interests the court has ordered terminated,
22without further notice to any party, further order of the
23court, or resort to proceedings under any other statute other
24than this Article. This right to possession shall be limited by
25the provisions governing entering and enforcing orders of
26possession under subsection (g) of Section 15-1508. If the

 

 

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1holder or purchaser determines that there are occupants of the
2mortgaged real estate who have not been made parties to the
3foreclosure and had their interests terminated therein, the
4holder or purchaser may bring a proceeding under subsection (h)
5of this Section, if applicable, or under Article IX 9 of this
6Code to terminate the rights of possession of any such
7occupants. The holder or purchaser shall not be entitled to
8proceed against any such occupant under Article IX 9 of this
9Code until after 30 days after the order confirming the sale is
10entered.
11    (e) Termination of Leases. A lease of all or any part of
12the mortgaged real estate shall not be terminated automatically
13solely by virtue of the entry into possession by (i) a
14mortgagee or receiver prior to the entry of an order confirming
15the sale, (ii) the holder of the certificate of sale, (iii) the
16holder of the deed issued pursuant to that certificate, or (iv)
17if no certificate or deed was issued, the purchaser at the
18sale.
19    (f) Other Statutes; Instruments. The provisions of this
20Article providing for possession of mortgaged real estate shall
21supersede any other inconsistent statutory provisions. In
22particular, and without limitation, whenever a receiver is
23sought to be appointed in any action in which a foreclosure is
24also pending, a receiver shall be appointed only in accordance
25with this Article. Except as may be authorized by this Article,
26no mortgage or other instrument may modify or supersede the

 

 

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1provisions of this Article.
2    (g) Certain Leases. Leases of the mortgaged real estate
3entered into by a mortgagee in possession or a receiver and
4approved by the court in a foreclosure shall be binding on all
5parties, including the mortgagor after redemption, the
6purchaser at a sale pursuant to a judgment of foreclosure and
7any person acquiring an interest in the mortgaged real estate
8after entry of a judgment of foreclosure in accordance with
9Sections 15-1402 and 15-1403.
10    (h) Proceedings Against Certain Occupants.
11        (1) The mortgagee-in-possession of the mortgaged real
12    estate under Section 15-1703, a receiver appointed under
13    Section 15-1704, a holder of the certificate of sale or
14    deed, or the purchaser may, at any time during the pendency
15    of the foreclosure and up to 90 days after the date of the
16    order confirming the sale, file a supplemental petition for
17    possession against a person not personally named as a party
18    to the foreclosure. This subsection (h) does not apply to
19    any lessee with a bona fide lease of a dwelling unit in
20    residential real estate in foreclosure.
21        (2) The supplemental petition for possession shall
22    name each such occupant against whom possession is sought
23    and state the facts upon which the claim for relief is
24    premised.
25        (3) (2) The petitioner shall serve upon each named
26    occupant the petition, a notice of hearing on the petition,

 

 

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1    and, if any, a copy of the certificate of sale or deed. The
2    proceeding for the termination of such occupant's
3    possessory interest, including service of the notice of the
4    hearing and the petition, shall in all respects comport
5    with the requirements of Article IX 9 of this Code, except
6    as otherwise specified in this Section. The hearing shall
7    be no less than 21 days from the date of service of the
8    notice.
9        (4) (3) The supplemental petition shall be heard as
10    part of the foreclosure proceeding and without the payment
11    of additional filing fees. An order for possession obtained
12    under this Section shall name each occupant whose interest
13    has been terminated, shall recite that it is only effective
14    as to the occupant so named and those holding under them,
15    and shall be enforceable for no more than 120 days after
16    its entry, except that the 120-day period may be extended
17    to the extent and in the manner provided in Section 9-117
18    of Article IX 9 and except as provided in item (5) (4) of
19    this subsection (h).
20        (5) (4) In a case of foreclosure where the occupant is
21    current on his or her rent, or where timely written notice
22    of to whom and where the rent is to be paid has not been
23    provided to the occupant, or where the occupant has made
24    good-faith efforts to make rental payments in order to keep
25    current, any order of possession must allow the occupant to
26    retain possession of the property covered in his or her

 

 

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1    rental agreement (i) for 120 days following the notice of
2    the hearing on the supplemental petition that has been
3    properly served upon the occupant, or (ii) through the
4    duration of his or her lease, whichever is shorter,
5    provided that if the duration of his or her lease is less
6    than 30 days from the date of the order, the order shall
7    allow the occupant to retain possession for 30 days from
8    the date of the order. A mortgagee in possession, receiver,
9    holder of a certificate of sale or deed, or purchaser at
10    the judicial sale, who asserts that the occupant is not
11    current in rent, shall file an affidavit to that effect in
12    the supplemental petition proceeding. If the occupant has
13    been given timely written notice of to whom and where the
14    rent is to be paid, this item (5) (4) shall only apply if
15    the occupant continues to pay his or her rent in full
16    during the 120-day period or has made good-faith efforts to
17    pay the rent in full during that period. No
18    mortgagee-in-possession, receiver or holder of a
19    certificate of sale or deed, or purchaser who fails to file
20    a supplemental petition under this subsection during the
21    pendency of a mortgage foreclosure shall file a forcible
22    entry and detainer action against an occupant of the
23    mortgaged real estate until 90 days after a notice of
24    intent to file such action has been properly served upon
25    the occupant.
26        (6) (5) The court records relating to a supplemental

 

 

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1    petition for possession filed under this subsection (h)
2    against an occupant who is entitled to notice under item
3    (5) (4) of this subsection (h), or relating to a forcible
4    entry and detainer action brought against an occupant who
5    would have lawful possession of the premises but for the
6    foreclosure of a mortgage on the property, shall be ordered
7    sealed and shall not be disclosed to any person, other than
8    a law enforcement officer or any other representative of a
9    governmental entity, except upon further order of the
10    court.
11    (i) Termination of bona fide leases. The holder of the
12certificate of sale, the holder of the deed issued pursuant to
13that certificate, or, if no certificate or deed was issued, the
14purchaser at the sale shall not terminate a bona fide lease of
15a dwelling unit in residential real estate in foreclosure
16except pursuant to Article IX of this Code.
17(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60,
18eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
 
19    (735 ILCS 5/15-1703)  (from Ch. 110, par. 15-1703)
20    Sec. 15-1703. Mortgagee in Possession.
21    (a) Powers and Duties. A mortgagee placed in possession of
22the real estate pursuant to Section 15-1701 or Section 15-1702
23shall have:
24        (1) such power and authority with respect to the real
25    estate and other property subject to the mortgage,

 

 

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1    including the right to receive the rents, issues and
2    profits thereof, as may have been conferred upon the
3    mortgagee by the terms of the mortgage or other written
4    instrument authorizing the taking of possession;
5        (2) all other rights and privileges of a mortgagee in
6    possession under law not inconsistent herewith; and
7        (3) the same powers, duties and liabilities as a
8    receiver appointed for the real estate in accordance with
9    this Article. If an order placing a mortgagee in possession
10    is modified, revoked or set aside, the mortgagee shall not
11    be liable for any damages to the extent such damages arise
12    solely out of the fact that the mortgagor was removed from
13    possession or that the mortgagee was placed in possession.
14    (a-5) Notice to occupants.
15        (1) Following the order placing the mortgagee in
16    possession of the mortgaged real estate, but no later than
17    21 days after the entry of such order, the mortgagee in
18    possession shall make a good faith effort to ascertain the
19    identities and addresses of all occupants of dwelling units
20    of the mortgaged real estate.
21        (2) Following the order placing the mortgagee in
22    possession of the mortgaged real estate, but no later than
23    21 days after the entry of such order, the mortgagee in
24    possession shall notify all known occupants of dwelling
25    units of the mortgaged real estate that the mortgagee has
26    taken possession of the mortgaged real estate. The notice

 

 

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1    shall be in writing and shall:
2            (i) identify the occupant being served by the name
3        known to the mortgagee in possession;
4            (ii) inform the occupant that the mortgaged real
5        estate at which the dwelling unit is located is the
6        subject of a foreclosure action and that control of the
7        mortgaged real estate has changed;
8            (iii) provide the name, address, and telephone
9        number of the individual or entity whom occupants may
10        contact with concerns about the mortgaged real estate
11        or to request repairs of that property;
12            (iv) include the following language, or language
13        that is substantially similar: "This is NOT a notice to
14        vacate the premises. You may wish to contact a lawyer
15        or your local legal aid or housing counseling agency to
16        discuss any rights that you may have."; and
17            (v) include the name of the case, the case number,
18        and the court where the foreclosure action is pending;
19        and .
20            (vi) provide instructions on the method of payment
21        of future rent, if applicable.
22        (3) The written notice required by item (2) of this
23    subsection (a-5) shall be served by delivering a copy
24    thereof to the known occupant, or by leaving the same with
25    some person of the age of 13 years or upwards, who is
26    residing on or in possession of the premises; or by sending

 

 

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1    a copy of the notice to the known occupant by first-class
2    mail, addressed to the occupant by the name known to the
3    mortgagee in possession.
4        (4) In the event that a mortgagee in possession
5    ascertains the identity and address of an occupant of a
6    dwelling unit of the mortgaged real estate more than 21
7    days after being placed in possession of the mortgaged real
8    estate pursuant to Section 15-1703, the mortgagee in
9    possession shall provide the notice required by item (2) of
10    this subsection (a-5) within 7 days of ascertaining the
11    identity and address of the occupant.
12        (5)(i) A mortgagee in possession who fails to comply
13    with items (1), (2), (3), and (4) of this subsection (a-5)
14    may not collect any rent due and owing from a known
15    occupant, or terminate a known occupant's tenancy for
16    non-payment of such rent, until the mortgagee in possession
17    has served the notice described in item (2) of this
18    subsection (a-5) upon the known occupant. After providing
19    such notice, the mortgagee in possession may collect any
20    and all rent otherwise due and owing the mortgagee in
21    possession from the known occupant and may terminate the
22    known occupant's tenancy for non-payment of such rent if
23    the mortgagee in possession otherwise has such right to
24    terminate.
25        (ii) An occupant who previously paid rent for the
26    current rental period to the mortgagor, or other entity

 

 

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1    with the authority to operate, manage, and conserve the
2    mortgaged real estate at the time of payment, shall not be
3    held liable for that rent by the mortgagee in possession,
4    and the occupant's tenancy shall not be terminated for
5    non-payment of rent for that rental period.
6        (6) Within 21 days of the order placing the mortgagee
7    in possession of the mortgaged real estate, the mortgagee
8    in possession shall post a written notice on the primary
9    entrance of each dwelling unit subject to the foreclosure
10    action that informs the occupants that the mortgagee in
11    possession is now operating and managing the mortgaged real
12    estate. This notice shall:
13            (i) inform occupant that the dwelling unit is the
14        subject of a foreclosure action and that control of the
15        mortgaged real estate has changed;
16            (ii) include the following language: "This is NOT a
17        notice to vacate the premises."; and
18            (iii) provide the name, address, and telephone
19        number of the individual or entity whom occupants may
20        contact with concerns about the mortgaged real estate
21        or to request repairs of the property; and .
22            (iv) provide instructions on the method of payment
23        of future rent, if applicable.
24        (7)(i) The provisions of item (5) of this subsection
25    (a-5) shall be the exclusive remedy for the failure of a
26    mortgagee in possession to provide notice to a known

 

 

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1    occupant under this Section.
2        (ii) This Section shall not abrogate any right that a
3    mortgagee in possession may have to possession of the
4    mortgaged real estate and to maintain a proceeding against
5    an occupant of a dwelling unit for possession under Article
6    IX 9 of this Code or subsection (h) of Section 15-1701.
7    (b) Fees and Expenses. A mortgagee in possession shall not
8be entitled to any fees for so acting, but shall be entitled to
9reimbursement for reasonable costs, expenses and third party
10management fees incurred in connection with such possession.
11(Source: P.A. 96-111, eff. 10-29-09.)
 
12    (735 ILCS 5/15-1704)  (from Ch. 110, par. 15-1704)
13    Sec. 15-1704. Receivers.
14    (a) Receiver. Notwithstanding the provisions of
15subsections (b), (c) and (d) of Section 15-1701, and except as
16provided in Section 15-1702, upon request of any party and a
17showing of good cause, the court shall appoint a receiver for
18the mortgaged real estate.
19    (b) Powers. A receiver appointed pursuant to this Article
20shall have possession of the mortgaged real estate and other
21property subject to the mortgage during the foreclosure, shall
22have full power and authority to operate, manage and conserve
23such property, and shall have all the usual powers of receivers
24in like cases. Without limiting the foregoing, a receiver shall
25have the power and authority to:

 

 

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1        (1) secure tenants and execute leases for the real
2    estate, the duration and terms of which are reasonable and
3    customary for the type of use involved, and such leases
4    shall have the same priority as if made by the owner of the
5    real estate; but, unless approved by the Court, the
6    receiver shall not execute oil, gas or other mineral
7    leases, or (even if otherwise allowed by law) leases
8    extending beyond the time of the receiver's possession;
9    provided, however, with respect to residential real estate
10    leased by the receiver, nothing in this Section shall
11    affect the legal rights of any lessee with respect to the
12    safety and habitability of the residential real estate;
13        (2) collect the rents, issues and profits from the
14    mortgaged real estate;
15        (3) insure the mortgaged real estate against loss by
16    fire or other casualty;
17        (4) employ counsel, custodians, janitors and other
18    help; and
19        (5) pay taxes which may have been or may be levied
20    against the mortgaged real estate.
21    (c) Duties. A receiver appointed pursuant to this Article
22must manage the mortgaged real estate as would a prudent
23person, taking into account the effect of the receiver's
24management on the interest of the mortgagor. A receiver may,
25without an order of the court, delegate managerial functions to
26a person in the business of managing real estate of the kind

 

 

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1involved who is financially responsible, not related to the
2mortgagee or receiver and prudently selected. However, the
3receiver shall remain responsible to the mortgagor or other
4persons for the acts or omissions of such management agent.
5When fees are paid to such a management agent, the receiver's
6fees may be adjusted to the extent the court deems appropriate.
7In managing the mortgaged real estate and other property
8subject to the mortgage, a receiver or receiver's delegate, to
9the extent the receiver receives sufficient receipts from the
10mortgaged real estate, such other property or other sources,
11except to the extent ordered otherwise by the court:
12        (1) shall maintain the existing casualty and liability
13    insurance required in accordance with the mortgage or
14    applicable to the real estate and other property subject to
15    the mortgage at the time the receiver took possession;
16        (2) shall use reasonable efforts to maintain the real
17    estate and other property subject to the mortgage in at
18    least as good condition as existed at the time the receiver
19    took possession, excepting reasonable wear and tear and
20    damage by any casualty;
21        (2.5) shall accept all rental payments from an occupant
22    of the mortgaged property, and any payments from a third
23    party or any rental assistance program in support of an
24    occupant's housing;
25        (3) shall apply receipts to payment of ordinary
26    operating expenses, including royalties, rents and other

 

 

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1    expenses of management;
2        (4) shall pay any shared or common expense assessments
3    due to any association of owners of interests in real
4    estate to the extent that such assessments are or may
5    become a lien against the mortgaged real estate;
6        (5) may pay the amounts due under any mortgage if the
7    mortgagee thereof is not a party in the foreclosure;
8        (6) may carry such additional casualty and liability
9    insurance as is reasonably available and reasonable as to
10    amounts and risks covered;
11        (7) may make other repairs and improvements necessary
12    to comply with building, housing, and other similar codes
13    or with existing contractual obligations affecting the
14    mortgaged real estate;
15        (8) may hold receipts as reserves reasonably required
16    for the foregoing purposes; and
17        (9) may take such other actions as may be reasonably
18    necessary to conserve the mortgaged real estate and other
19    property subject to the mortgage, or as otherwise
20    authorized by the court.
21    (d) Allocation of Receipts. Receipts received from
22operation of the real estate and other property subject to the
23mortgage by the receiver shall be applied in the following
24order of priority.
25        (1) to reimbursement of the receiver for all reasonable
26    costs and expenses incurred by the receiver or the

 

 

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1    receiver's delegates;
2        (2) to payment of insurance premiums authorized in
3    paragraph (1) of subsection (c) of Section 15-1704;
4        (3) to payment of the receiver's delegates of any
5    reasonable management fees for managing real estate of the
6    type involved;
7        (4) to payment of receiver's fees allowed by the court;
8        (5) to payment of expenses authorized in paragraphs
9    (2), (3) and (4) of subsection (c) of Section 15-1704;
10        (6) to payment of amounts authorized in paragraph (5)
11    of subsection (c) of Section 15-1704;
12        (7) to payment of expenses authorized in paragraphs (6)
13    and (7) of subsection (c) of Section 15-1704; and
14        (8) the balance, if any, shall be held or disbursed as
15    ordered by the court.
16    (e) Non-Liability for Allocations. A receiver shall in no
17event be liable to any person for the allocation of, or failure
18to allocate, receipts to possible expenditures within the same
19priority category.
20    (f) Notice to occupants.
21        (1) Following an order appointing a receiver pursuant
22    to Section 15-1704, but no later than 21 days after the
23    entry of such order, the appointed receiver shall make a
24    good faith effort to ascertain the identities and addresses
25    of all occupants of dwelling units of the mortgaged real
26    estate.

 

 

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1        (2) Following an order appointing a receiver pursuant
2    to Section 15-1704, but no later than 21 days after the
3    entry of such order, the appointed receiver shall notify
4    all known occupants of dwelling units of the mortgaged real
5    estate that the receiver has been appointed receiver of the
6    mortgaged real estate. Such notice shall be in writing and
7    shall:
8            (i) identify the occupant being served by the name
9        known to the receiver;
10            (ii) inform the occupant that the mortgaged real
11        estate at which the dwelling unit is located is the
12        subject of a foreclosure action and that control of the
13        mortgaged real estate has changed;
14            (iii) provide the name, address, and telephone
15        number of the individual or entity whom occupants may
16        contact with concerns about the mortgaged real estate
17        or to request repairs of that property;
18            (iv) include the following language, or language
19        that is substantially similar: "This is NOT a notice to
20        vacate the premises. You may wish to contact a lawyer
21        or your local legal aid or housing counseling agency to
22        discuss any rights that you may have."; and
23            (v) include the name of the case, the case number,
24        and the court where the foreclosure action is pending;
25        and .
26            (vi) provide instructions on the method of payment

 

 

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1        of future rent, if applicable.
2        (3) The written notice required by item (2) of this
3    subsection (f) shall be served by delivering a copy thereof
4    to the known occupant, or by leaving the same with some
5    person of the age of 13 years or upwards, who is residing
6    on or in possession of the premises; or by sending a copy
7    of the notice to the known occupant by first-class mail,
8    addressed to the occupant by the name known to the
9    receiver.
10        (4) In the event that a receiver ascertains the
11    identity and address of an occupant of a dwelling unit of
12    the mortgaged real estate more than 21 days after
13    appointment pursuant to Section 15-1704, the receiver
14    shall provide the notice required by item (2) of this
15    subsection (f) within 7 days of ascertaining the identity
16    and address of the occupant.
17        (5)(i) A receiver who fails to comply with items (1),
18    (2), (3), and (4) of this subsection (f) may not collect
19    any rent due and owing from a known occupant, or terminate
20    a known occupant's tenancy for non-payment of such rent,
21    until the receiver has served the notice described in item
22    (2) of this subsection (f) upon the known occupant. After
23    providing such notice, the receiver may collect any and all
24    rent otherwise due and owing the receiver from the known
25    occupant and may terminate the known occupant's tenancy for
26    non-payment of such rent if the receiver otherwise has such

 

 

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1    right to terminate.
2        (ii) An occupant who previously paid rent for the
3    current rental period to the mortgagor, or other entity
4    with the authority to operate, manage, and conserve the
5    mortgaged real estate at the time of payment, shall not be
6    held liable for that rent by the receiver, and the
7    occupant's tenancy shall not be terminated for non-payment
8    of rent for that rental period.
9        (6) Within 21 days of appointment, the receiver shall
10    post a written notice on the primary entrance of each
11    dwelling unit subject to the foreclosure action that
12    informs occupants that the receiver has been appointed to
13    operate and manage the property. This notice shall:
14            (i) inform occupant that the dwelling unit is the
15        subject of a foreclosure action and that control of the
16        mortgaged real estate has changed;
17            (ii) include the following language: "This is NOT a
18        notice to vacate the premises."; and
19            (iii) provide the name, address, and telephone
20        number of the individual or entity whom occupants may
21        contact with concerns about the mortgaged real estate
22        or to request repairs of the property; and .
23            (iv) provide instructions on the method of payment
24        of future rent, if applicable.
25        (7)(i) The provisions of item (5) of this subsection
26    (f) shall be the exclusive remedy for the failure of a

 

 

09800SB0056ham001- 55 -LRB098 02622 DRJ 46088 a

1    receiver to provide notice to a known occupant under this
2    Section.
3        (ii) This Section shall not abrogate any right that a
4    receiver may have to possession of the mortgaged real
5    estate and to maintain a proceeding against an occupant of
6    a dwelling unit for possession under Article IX 9 of this
7    Code or subsection (h) of Section 15-1701.
8    (g) Increase of rents. Notwithstanding any other provision
9of this Article, a receiver shall not charge an occupant of the
10mortgaged real estate a rental amount above that which the
11occupant had been paying for use and occupancy of the mortgaged
12real estate prior to the appointment of a receiver without
13leave of court. The court may allow an increase of rent if,
14upon motion by the receiver, the court finds by a preponderance
15of the evidence, that the increase of rent is necessary to
16operate, manage, and conserve the mortgaged real estate
17pursuant to this Section. A list of the current rents for each
18unit in the mortgaged real estate, and a list of the proposed
19rent increase for each of those units, must be attached to a
20motion for a rent increase under this subsection (g). All
21occupants of the mortgaged real estate who may be affected by
22the motion for a rent increase, if not otherwise entitled to
23notice, shall be notified in writing of the nature of the
24motion, the date and time of the motion, and the court where
25the motion will be heard. Such notice shall be by personal
26service or first-class mail. In the event that the receiver and

 

 

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1an occupant of a dwelling unit agree to a rent increase for
2that dwelling unit, the receiver is excused from the
3requirements of this subsection (g) as to that dwelling unit.
4Nothing in this subsection (g) shall alter the terms of any
5lease agreement.
6    (h) Removal. The court may remove a receiver upon a showing
7of good cause, in which case a new receiver may be appointed in
8accordance with subsection (b) of Section 15-1702 and
9subsection (a) of Section 15-1704.
10(Source: P.A. 96-111, eff. 10-29-09.)
 
11    Section 95. No acceleration or delay. Where this Act makes
12changes in a statute that is represented in this Act by text
13that is not yet or no longer in effect (for example, a Section
14represented by multiple versions), the use of that text does
15not accelerate or delay the taking effect of (i) the changes
16made by this Act or (ii) provisions derived from any other
17Public Act.
 
18    Section 99. Effective date. This Act takes effect 90 days
19after becoming law.".