Illinois General Assembly - Full Text of HB3335
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Full Text of HB3335  97th General Assembly

HB3335sam001 97TH GENERAL ASSEMBLY

Sen. Susan Garrett

Filed: 5/5/2011

 

 


 

 


 
09700HB3335sam001LRB097 09053 AJO 54843 a

1
AMENDMENT TO HOUSE BILL 3335

2    AMENDMENT NO. ______. Amend House Bill 3335 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5changing Sections 15-1503 and 15-1508 as follows:
 
6    (735 ILCS 5/15-1503)  (from Ch. 110, par. 15-1503)
7    Sec. 15-1503. Notice of Foreclosure.
8    (a) A notice of foreclosure, whether the foreclosure is
9initiated by complaint or counterclaim, made in accordance with
10this Section and recorded in the county in which the mortgaged
11real estate is located shall be constructive notice of the
12pendency of the foreclosure to every person claiming an
13interest in or lien on the mortgaged real estate, whose
14interest or lien has not been recorded prior to the recording
15of such notice of foreclosure. Such notice of foreclosure must
16be executed by any party or any party's attorney and shall

 

 

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1include (i) the names of all plaintiffs and the case number,
2(ii) the court in which the action was brought, (iii) the names
3of title holders of record, (iv) a legal description of the
4real estate sufficient to identify it with reasonable
5certainty, (v) a common address or description of the location
6of the real estate and (vi) identification of the mortgage
7sought to be foreclosed. An incorrect common address or
8description of the location, or an immaterial error in the
9identification of a plaintiff or title holder of record, shall
10not invalidate the lis pendens effect of the notice under this
11Section. A notice which complies with this Section shall be
12deemed to comply with Section 2-1901 of the Code of Civil
13Procedure and shall have the same effect as a notice filed
14pursuant to that Section; however, a notice which complies with
15Section 2-1901 shall not be constructive notice unless it also
16complies with the requirements of this Section.
17    (b) With respect to residential real estate, a copy of the
18notice of foreclosure described in subsection (a) of Section
1915-1503 shall be sent by first class mail, postage prepaid, to
20the municipality within the boundary of which the mortgaged
21real estate is located, or to the county within the boundary of
22which the mortgaged real estate is located if the mortgaged
23real estate is located in an unincorporated territory. A
24municipality or county must clearly publish on its website a
25single address to which such notice shall be sent. If a
26municipality or county does not maintain a website, then the

 

 

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1municipality or county must publicly post in its main office a
2single address to which such notice shall be sent. In the event
3that a municipality or county has not complied with the
4publication requirement in this subsection (b), then the copy
5of the such notice to the municipality or county shall be sent
6by first class mail to the chairperson of the county board or
7county clerk in the case of a county, to the mayor or city
8clerk in the case of a city and in the case of a city with a
9population of more than 2,000,000 also to the alderman for the
10ward in which the property is located, to the president of the
11board of trustees or village clerk in the case of a village, or
12to the president or town clerk in the case of a town provided
13pursuant to Section 2-211 of the Code of Civil Procedure.
14Failure to send or receive a copy of the notice shall not
15impair or abrogate in any way the rights of the mortgagee or
16affect the status of the foreclosure proceedings.
17(Source: P.A. 96-856, eff. 3-1-10.)
 
18    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
19    Sec. 15-1508. Report of Sale and Confirmation of Sale.
20    (a) Report. The person conducting the sale shall promptly
21make a report to the court, which report shall include a copy
22of all receipts and, if any, certificate of sale.
23    (b) Hearing. Upon motion and notice in accordance with
24court rules applicable to motions generally, which motion shall
25not be made prior to sale, the court shall conduct a hearing to

 

 

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

 

 

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

 

 

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1complied with the publication requirement in this subsection
2(b-10), then the copy of the order such notice to the
3municipality or county shall be sent by first class mail to the
4chairperson of the county board or county clerk in the case of
5a county, to the mayor or city clerk in the case of a city and
6in the case of a city with a population of more than 2,000,000
7also to the alderman for the ward in which the property is
8located, to the president of the board of trustees or village
9clerk in the case of a village, or to the president or town
10clerk in the case of a town provided pursuant to Section 2-211
11of the Code of Civil Procedure. Failure to send or receive a
12copy of the order shall not impair or abrogate in any way the
13rights of the mortgagee or purchaser or affect the status of
14the foreclosure proceedings.
15    (b-15) Notice of confirmation order sent to known insurers.
16With respect to residential real estate, a copy of the
17confirmation order required under subsection (b) shall be sent
18by first class mail, postage prepaid, to the last-known
19property insurer of the foreclosed property. Failure to send or
20receive a copy of the order shall not impair or abrogate in any
21way the rights of the mortgagee or purchaser or affect the
22status of the foreclosure proceedings.
23    (c) Failure to Give Notice. If any sale is held without
24compliance with subsection (c) of Section 15-1507 of this
25Article, any party entitled to the notice provided for in
26paragraph (3) of that subsection (c) who was not so notified

 

 

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

 

 

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1entered the judgment shall set aside a sale held pursuant to
2Section 15-1507, upon motion of the mortgagor at any time prior
3to the confirmation of the sale, if the mortgagor proves by a
4preponderance of the evidence that (i) the mortgagor has
5applied for assistance under the Making Home Affordable Program
6established by the United States Department of the Treasury
7pursuant to the Emergency Economic Stabilization Act of 2008,
8as amended by the American Recovery and Reinvestment Act of
92009, and (ii) the mortgaged real estate was sold in material
10violation of the program's requirements for proceeding to a
11judicial sale. The provisions of this subsection (d-5), except
12for this sentence, shall become inoperative on January 1, 2013
13for all actions filed under this Article after December 31,
142012, in which the mortgagor did not apply for assistance under
15the Making Home Affordable Program on or before December 31,
162012.
17    (e) Deficiency Judgment. In any order confirming a sale
18pursuant to the judgment of foreclosure, the court shall also
19enter a personal judgment for deficiency against any party (i)
20if otherwise authorized and (ii) to the extent requested in the
21complaint and proven upon presentation of the report of sale in
22accordance with Section 15-1508. Except as otherwise provided
23in this Article, a judgment may be entered for any balance of
24money that may be found due to the plaintiff, over and above
25the proceeds of the sale or sales, and enforcement may be had
26for the collection of such balance, the same as when the

 

 

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1judgment is solely for the payment of money. Such judgment may
2be entered, or enforcement had, only in cases where personal
3service has been had upon the persons personally liable for the
4mortgage indebtedness, unless they have entered their
5appearance in the foreclosure action.
6    (f) Satisfaction. Upon confirmation of the sale, the
7judgment stands satisfied to the extent of the sale price less
8expenses and costs. If the order confirming the sale includes a
9deficiency judgment, the judgment shall become a lien in the
10manner of any other judgment for the payment of money.
11    (g) The order confirming the sale shall include,
12notwithstanding any previous orders awarding possession during
13the pendency of the foreclosure, an award to the purchaser of
14possession of the mortgaged real estate, as of the date 30 days
15after the entry of the order, against the parties to the
16foreclosure whose interests have been terminated.
17    An order of possession authorizing the removal of a person
18from possession of the mortgaged real estate shall be entered
19and enforced only against those persons personally named as
20individuals in the complaint or the petition under subsection
21(h) of Section 15-1701 and in the order of possession and shall
22not be entered and enforced against any person who is only
23generically described as an unknown owner or nonrecord claimant
24or by another generic designation in the complaint.
25    Notwithstanding the preceding paragraph, the failure to
26personally name, include, or seek an award of possession of the

 

 

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1mortgaged real estate against a person in the confirmation
2order shall not abrogate any right that the purchaser may have
3to possession of the mortgaged real estate and to maintain a
4proceeding against that person for possession under Article 9
5of this Code or subsection (h) of Section 15-1701; and
6possession against a person who (1) has not been personally
7named as a party to the foreclosure and (2) has not been
8provided an opportunity to be heard in the foreclosure
9proceeding may be sought only by maintaining a proceeding under
10Article 9 of this Code or subsection (h) of Section 15-1701.
11(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09;
1296-856, eff. 3-1-10; 96-1245, eff. 7-23-10; revised
139-16-10.)".