SB1487 EngrossedLRB099 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 on the date of the
17court order confirming the judicial sale of the property
18pursuant to a judgment of foreclosure unless renewed by order
19of the judge.
20    (c) Upon inspecting the order and making a determination
21that the order is valid and prevents any nonrecord claimants
22from recording an interest on the property without court
23approval, the recorder shall record the court's order as a

 

 

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1separate document in the chain of title, after the notice of
2foreclosure. It is the responsibility of the plaintiff to
3attach any necessary exhibits to fulfill statutory recording
4requirements. The recorder may charge the standard and
5applicable recording fees at the time the order is presented
6for recording.
7    (d) If a court order has been recorded under this Section,
8a nonrecord claimant shall not record a document regarding the
9property that is the subject of the foreclosure action without
10a certified court order. A nonrecord claimant shall obtain a
11certified court order by filing a motion in the office of the
12clerk of the court in which the action is pending. The court
13shall then issue a dated certified order indicating the type of
14document to be recorded, the person or entity authorized to
15record, the property index number of the property, and the case
16number of the foreclosure. The order must be presented in
17person to designated staff in the recorder's office along with
18the document to be recorded. The recorder shall not accept
19recordings subject to this Section by mail or electronic
20submission. A unit of government, or any duly appointed persons
21or entities acting as agents for a unit of government or
22judicial body, shall not be required to obtain a certified
23court order in accordance with this subsection in order to
24record a document on the property that is the subject of a
25foreclosure action.
26    (e) The recorder is authorized to inspect the photo

 

 

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1identification of any person attempting to record a document on
2a title that is subject to a court order under this Section and
3may deny recordation to any person who refuses to provide
4proper photo identification.
5    (f) Once the foreclosure is finalized and a new deed is
6issued, an official court order must accompany the deed at the
7time of recordation.
8    (g) This Section does not apply to a bank or financial
9institution that recorded the lis pendens notice of
10foreclosure.
11    (h) If a document is recorded contrary to a court's order
12and the recorder determines that the recorder's office is
13responsible for the error, then the recorder shall record a new
14document clearly referencing the document number of the
15erroneous recording, indicating that it is invalid. If
16feasible, the recorder may watermark the erroneous recording as
17invalid.
18    (i) Except in cases of willful or wanton misconduct, the
19recorder, or any agent or employee of the recorder, is immune
20from any liability under this Section.
21    (j) The program implemented under this amendatory Act of
22the 99th General Assembly shall be considered a pilot program
23from January 1, 2016 to January 1, 2019. The recorder may end
24the pilot program earlier than January 1, 2019 by sending a
25certified letter to the Chief Judge of the county if the
26recorder determines that either workforce challenges or

 

 

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1computer hardware or software limitations have prevented the
2effective implementation and operation of the program. The
3recorder shall enforce in good faith any frozen title requests
4initiated prior to cancelling the pilot program.
5    (k) This Section is repealed on January 1, 2019.