99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1487

 

Introduced 2/20/2015, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/3-5010.7 new

    Amends the Counties Code. Provides that the recorder of deeds in a county with a population of more than 3,000,000 shall establish a pilot program that permits documents to be recorded against a property in foreclosure by judicial order only. Provides that the pilot program shall last from January 1, 2016 to January 1, 2019. Adds provisions concerning: the procedures for limiting the recording of documents; erroneous recording of documents; immunity of the recorder; and premature termination of the pilot program. Repeals the new provisions on January 1, 2019.


LRB099 09675 HEP 29884 b

 

 

A BILL FOR

 

SB1487LRB099 09675 HEP 29884 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by adding Section
53-5010.7 as follows:
 
6    (55 ILCS 5/3-5010.7 new)
7    Sec. 3-5010.7. Foreclosure property pilot program.
8    (a) The recorder in a county with a population of more than
93,000,000 shall establish a pilot program that permits
10documents to be recorded against a property in foreclosure by
11judicial order only.
12    (b) Beginning January 1, 2016, upon motion by the plaintiff
13in a foreclosure action, the judge shall issue an order barring
14any nonrecord claimants from recording,without approval of the
15court, an interest on the property that is the subject of the
16foreclosure action. The order shall expire 2 years after the
17date of recordation of the notice of foreclosure unless renewed
18by order of the judge.
19    (c) Upon inspecting the order and making a determination
20that the order is valid and prevents any nonrecord claimants
21from recording an interest on the property without court
22approval, the recorder shall record the court's order as a
23separate document in the chain of title, after the notice of

 

 

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1foreclosure. It is the responsibility of the plaintiff to
2attach any necessary exhibits to fulfill statutory recording
3requirements. The recorder may charge the standard and
4applicable recording fees at the time the order is presented
5for recording.
6    (d) If a court order has been recorded under this Section,
7a nonrecord claimant shall not record a document regarding the
8property that is the subject of the foreclosure action without
9a certified court order. A nonrecord claimant shall obtain a
10certified court order by filing a motion in the office of the
11clerk of the court in which the action is pending. The court
12shall then issue a dated certified order indicating the type of
13document to be recorded, the person or entity authorized to
14record, the property index number of the property, and the case
15number of the foreclosure. The order must be presented in
16person to designated staff in the recorder's office along with
17the document to be recorded. The recorder shall not accept
18recordings subject to this Section by mail or electronic
19submission.
20    (e) The recorder is authorized to inspect the photo
21identification of any person attempting to record a document on
22a title that is subject to a court order under this Section and
23may deny recordation to any person who refuses to provide
24proper photo identification.
25    (f) Once the foreclosure is finalized and a new deed is
26issued, an official court order must accompany the deed at the

 

 

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1time of recordation.
2    (g) This Section does not apply to a bank or financial
3institution that recorded the lis pendens notice of
4foreclosure. If the initial foreclosure is found to be in
5error, or the wrong institution files the foreclosure, then the
6filing institution shall file an affidavit rescinding the
7freeze on title and shall be liable for a $10,000 penalty,
8payable to the owner against which the foreclosure was filed.
9    (h) If a document is recorded contrary to a court's order
10and the recorder determines that the recorder's office is
11responsible for the error, then the recorder shall record a new
12document clearly referencing the document number of the
13erroneous recording, indicating that it is invalid. If
14feasible, the recorder may watermark the erroneous recording as
15invalid.
16    (i) Except in cases of willful or wanton misconduct, the
17recorder, or any agent or employee of the recorder, is immune
18from any liability under this Section.
19    (j) The program implemented under this amendatory Act of
20the 99th General Assembly shall be considered a pilot program
21from January 1, 2016 to January 1, 2019. The recorder may end
22the pilot program earlier than January 1, 2019 by sending a
23certified letter to the Chief Judge of the county if the
24recorder determines that either workforce challenges or
25computer hardware or software limitations have prevented the
26effective implementation and operation of the program. The

 

 

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1recorder shall enforce in good faith any frozen title requests
2initiated prior to cancelling the pilot program.
3    (k) This Section is repealed on January 1, 2019.