SB1487 EnrolledLRB099 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 also prohibit the owner of
17the property from recording any document without judicial
18approval except for court orders related to the foreclosure
19case or court orders related to the property that were entered
20after the effective date of the order prohibiting recordation.
21The term "nonrecord claimant", for purposes of this Act, has
22the meaning ascribed to that term in Section 15-1210 of the
23Code of Civil Procedure. The order shall expire on the date of

 

 

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1the court order confirming the judicial sale of the property
2pursuant to a judgment of foreclosure unless renewed by order
3of the judge.
4    (c) Upon inspecting the order and making a determination
5that the order is valid and prevents any nonrecord claimants
6from recording an interest on the property without court
7approval, the recorder shall record the court's order as a
8separate document in the chain of title, after the notice of
9foreclosure. It is the responsibility of the plaintiff to
10attach any necessary exhibits to fulfill statutory recording
11requirements. The recorder may charge the standard and
12applicable recording fees at the time the order is presented
13for recording.
14    (d) If a court order has been recorded under this Section,
15a nonrecord claimant shall not record a document regarding the
16property that is the subject of the foreclosure action without
17a certified court order. A nonrecord claimant shall obtain a
18certified court order by filing a motion in the office of the
19clerk of the court in which the action is pending. The court
20shall then issue a dated certified order indicating the type of
21document to be recorded, the person or entity authorized to
22record, the property index number of the property, and the case
23number of the foreclosure. The order must be presented in
24person to designated staff in the recorder's office along with
25the document to be recorded. The recorder shall not accept
26recordings subject to this Section by mail or electronic

 

 

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1submission. A mechanics lien claimant, unit of government, or
2any duly appointed persons or entities acting as agents for a
3unit of government or judicial body shall not be required to
4obtain a certified court order in accordance with this
5subsection in order to record a document on the property that
6is the subject of a foreclosure action.
7    (e) The recorder is authorized to inspect the photo
8identification of any person attempting to record a document on
9a title that is subject to a court order under this Section and
10may deny recordation to any person who refuses to provide
11proper photo identification.
12    (f) Once the foreclosure is finalized and a new deed is
13issued, an official court order confirming the sale must be
14presented for inspection at the time of recordation of the deed
15as evidence of the expiration of the order prohibiting
16recordation.
17    (g) This Section does not apply to a mortgagee or its agent
18that recorded the lis pendens notice of foreclosure.
19    (h) If a document is recorded contrary to a court's order
20and the recorder determines that the recorder's office is
21responsible for the error, the recorder shall notify in writing
22the person recording the document, if possible, and if after 30
23days' notice or 30 days after the recording when the recorder
24is unable to notify the filer and that person fails to obtain
25the certified order required under subsection (d), the recorder
26shall then record a new document clearly referencing the

 

 

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1document number of the erroneous recording and indicating that
2it has been voided. If feasible, the recorder shall watermark
3the erroneous recording as voided using the word "voided".
4    (i) Except in cases of willful or wanton misconduct, the
5recorder, or any agent or employee of the recorder, is immune
6from any liability under this Section.
7    (j) The program implemented under this amendatory Act of
8the 99th General Assembly shall be considered a pilot program
9from January 1, 2016 to January 1, 2019. The recorder may end
10the pilot program earlier than January 1, 2019 by sending a
11certified letter to the Chief Judge of the county if the
12recorder determines that either workforce challenges or
13computer hardware or software limitations have prevented the
14effective implementation and operation of the program. The
15recorder shall enforce in good faith any frozen title requests
16initiated prior to cancelling the pilot program.
17    (k) This Section is repealed on January 1, 2019.