Illinois General Assembly - Full Text of HB1574
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Full Text of HB1574  97th General Assembly




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1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 15-1202.5 and 15-1508 as follows:
6    (735 ILCS 5/15-1202.5)
7    Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
815-1508, 15-1508.5, 15-1703, and 15-1704 only, "dwelling unit"
9means a room or suite of rooms providing complete, independent
10living facilities for at least one person, including permanent
11provisions for sanitation, cooking, eating, sleeping, and
12other activities routinely associated with daily life.
13(Source: P.A. 96-111, eff. 10-29-09.)
14    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
15    Sec. 15-1508. Report of Sale and Confirmation of Sale.
16    (a) Report. The person conducting the sale shall promptly
17make a report to the court, which report shall include a copy
18of all receipts and, if any, certificate of sale.
19    (b) Hearing. Upon motion and notice in accordance with
20court rules applicable to motions generally, which motion shall
21not be made prior to sale, the court shall conduct a hearing to
22confirm the sale. Unless the court finds that (i) a notice



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1required in accordance with subsection (c) of Section 15-1507
2was not given, (ii) the terms of sale were unconscionable,
3(iii) the sale was conducted fraudulently, or (iv) that justice
4was otherwise not done, the court shall then enter an order
5confirming the sale. The confirmation order shall include a
6name, address, and telephone number of the holder of the
7certificate of sale or deed issued pursuant to that certificate
8or, if no certificate or deed was issued, the purchaser, whom a
9municipality or county may contact with concerns about the real
10estate. The confirmation order may also:
11        (1) approve the mortgagee's fees and costs arising
12    between the entry of the judgment of foreclosure and the
13    confirmation hearing, those costs and fees to be allowable
14    to the same extent as provided in the note and mortgage and
15    in Section 15-1504;
16        (2) provide for a personal judgment against any party
17    for a deficiency; and
18        (3) determine the priority of the judgments of parties
19    who deferred proving the priority pursuant to subsection
20    (h) of Section 15-1506, but the court shall not defer
21    confirming the sale pending the determination of such
22    priority.
23    (b-5) Notice with respect to residential real estate. With
24respect to residential real estate, the notice required under
25subsection (b) of this Section shall be sent to the mortgagor
26even if the mortgagor has previously been held in default. In



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1the event the mortgagor has filed an appearance, the notice
2shall be sent to the address indicated on the appearance. In
3all other cases, the notice shall be sent to the mortgagor at
4the common address of the foreclosed property. The notice shall
5be sent by first class mail. Unless the right to possession has
6been previously terminated by the court, the notice shall
7include the following language in 12-point boldface
8capitalized type:
13    (b-10) Notice of confirmation order sent to municipality or
14county. A copy of the confirmation order required under
15subsection (b) shall be sent to the municipality in which the
16foreclosed property is located, or to the county within the
17boundary of which the foreclosed property is located if the
18foreclosed property is located in an unincorporated territory.
19A municipality or county must clearly publish on its website a
20single address to which such notice shall be sent. If a
21municipality or county does not maintain a website, then the
22municipality or county must publicly post in its main office a
23single address to which such notice shall be sent. In the event
24that a municipality or county has not complied with the
25publication requirement in this subsection (b-10), then such
26notice to the municipality or county shall be provided pursuant



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1to Section 2-211 of the Code of Civil Procedure.
2    (c) Failure to Give Notice. If any sale is held without
3compliance with subsection (c) of Section 15-1507 of this
4Article, any party entitled to the notice provided for in
5paragraph (3) of that subsection (c) who was not so notified
6may, by motion supported by affidavit made prior to
7confirmation of such sale, ask the court which entered the
8judgment to set aside the sale. Any such party shall guarantee
9or secure by bond a bid equal to the successful bid at the
10prior sale, unless the party seeking to set aside the sale is
11the mortgagor, the real estate sold at the sale is residential
12real estate, and the mortgagor occupies the residential real
13estate at the time the motion is filed. In that event, no
14guarantee or bond shall be required of the mortgagor. Any
15subsequent sale is subject to the same notice requirement as
16the original sale.
17    (d) Validity of Sale. Except as provided in subsection (c)
18of Section 15-1508, no sale under this Article shall be held
19invalid or be set aside because of any defect in the notice
20thereof or in the publication of the same, or in the
21proceedings of the officer conducting the sale, except upon
22good cause shown in a hearing pursuant to subsection (b) of
23Section 15-1508. At any time after a sale has occurred, any
24party entitled to notice under paragraph (3) of subsection (c)
25of Section 15-1507 may recover from the mortgagee any damages
26caused by the mortgagee's failure to comply with such paragraph



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1(3). Any party who recovers damages in a judicial proceeding
2brought under this subsection may also recover from the
3mortgagee the reasonable expenses of litigation, including
4reasonable attorney's fees.
5    (d-5) Making Home Affordable Program. The court that
6entered the judgment shall set aside a sale held pursuant to
7Section 15-1507, upon motion of the mortgagor at any time prior
8to the confirmation of the sale, if the mortgagor proves by a
9preponderance of the evidence that (i) the mortgagor has
10applied for assistance under the Making Home Affordable Program
11established by the United States Department of the Treasury
12pursuant to the Emergency Economic Stabilization Act of 2008,
13as amended by the American Recovery and Reinvestment Act of
142009, and (ii) the mortgaged real estate was sold in material
15violation of the program's requirements for proceeding to a
16judicial sale. The provisions of this subsection (d-5), except
17for this sentence, shall become inoperative on January 1, 2013
18for all actions filed under this Article after December 31,
192012, in which the mortgagor did not apply for assistance under
20the Making Home Affordable Program on or before December 31,
22    (e) Deficiency Judgment. In any order confirming a sale
23pursuant to the judgment of foreclosure, the court shall also
24enter a personal judgment for deficiency against any party (i)
25if otherwise authorized and (ii) to the extent requested in the
26complaint and proven upon presentation of the report of sale in



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1accordance with Section 15-1508. Except as otherwise provided
2in this Article, a judgment may be entered for any balance of
3money that may be found due to the plaintiff, over and above
4the proceeds of the sale or sales, and enforcement may be had
5for the collection of such balance, the same as when the
6judgment is solely for the payment of money. Such judgment may
7be entered, or enforcement had, only in cases where personal
8service has been had upon the persons personally liable for the
9mortgage indebtedness, unless they have entered their
10appearance in the foreclosure action.
11    (f) Satisfaction. Upon confirmation of the sale, the
12judgment stands satisfied to the extent of the sale price less
13expenses and costs. If the order confirming the sale includes a
14deficiency judgment, the judgment shall become a lien in the
15manner of any other judgment for the payment of money.
16    (g) The order confirming the sale shall include,
17notwithstanding any previous orders awarding possession during
18the pendency of the foreclosure, an award to the purchaser of
19possession of the mortgaged real estate, as of the date 30 days
20after the entry of the order, against the parties to the
21foreclosure whose interests have been terminated.
22    An order of possession authorizing the removal of a person
23from possession of the mortgaged real estate shall be entered
24and enforced only against those persons personally named as
25individuals in the complaint or the petition under subsection
26(h) of Section 15-1701 and in the order of possession and shall



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



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1amount of the deposit and any statutory interest.
2(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09;
396-856, eff. 3-1-10; 96-1245, eff. 7-23-10; revised 9-16-10.)
4    Section 10. The Security Deposit Return Act is amended by
5adding Section 1.2 as follows:
6    (765 ILCS 710/1.2 new)
7    Sec. 1.2. Security deposit transfer. Notwithstanding
8Section 1.1, when a lessor transfers actual possession of a
9security deposit received from a lessee, including any
10statutory interest that has not been paid to a lessee, to a
11holder of the certificate of sale or deed issued pursuant to
12that certificate or, if no certificate or deed was issued, the
13purchaser of a foreclosed property under Article 15 of the Code
14of Civil Procedure, the holder or purchaser shall be liable to
15a lessee for the transferred security deposit, including any
16statutory interest that has not been paid to the lessee, as
17provided in this Act. Within 21 days after the transfer of the
18security deposits and receipt of the name and address of any
19lessee who paid a deposit, the holder or purchaser shall post a
20written notice on the primary entrance of each dwelling unit at
21the property with respect to which the holder or purchaser has
22acquired actual possession of a security deposit. The written
23notice shall state that the holder or purchaser has acquired
24the security deposit paid by the lessee in connection with the



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1lessee's rental of that dwelling unit.
2    Section 99. Effective date. This Act takes effect upon
3becoming law.