Illinois General Assembly - Full Text of SB0016
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Full Text of SB0016  97th General Assembly


Rep. Karen A. Yarbrough

Filed: 5/26/2011





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2    AMENDMENT NO. ______. Amend Senate Bill 16 by replacing
3everything after the enacting clause with the following:
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-20-15 and 11-20-15.1 and by adding Section
611-20-17 as follows:
7    (65 ILCS 5/11-20-15)
8    Sec. 11-20-15. Lien for removal costs.
9    (a) If the municipality incurs a removal cost under Section
1011-20-7, 11-20-8, 11-20-12, or 11-20-13, or 11-20-17 with
11respect to any underlying parcel, then that cost is a lien upon
12that underlying parcel. This lien is superior to all other
13liens and encumbrances, except tax liens and as otherwise
14provided in subsection (c) of this Section.
15    (b) To perfect a lien under this Section, the municipality
16must, within one year after the removal cost is incurred, file



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1notice of lien in the office of the recorder in the county in
2which the underlying parcel is located or, if the underlying
3parcel is registered under the Torrens system, in the office of
4the Registrar of Titles of that county. The notice must consist
5of a sworn statement setting out:
6        (1) a description of the underlying parcel that
7    sufficiently identifies the parcel;
8        (2) the amount of the removal cost; and
9        (3) the date or dates when the removal cost was
10    incurred by the municipality.
11    If, for any one parcel, the municipality engaged in any
12removal activity on more than one occasion during the course of
13one year, then the municipality may combine any or all of the
14costs of each of those activities into a single notice of lien.
15    (c) A lien under this Section is not valid as to: (i) any
16purchaser whose rights in and to the underlying parcel arose
17after the removal activity but before the filing of the notice
18of lien; or (ii) any mortgagee, judgment creditor, or other
19lienor whose rights in and to the underlying parcel arose
20before the filing of the notice of lien.
21    (d) The removal cost is not a lien on the underlying parcel
22unless a notice is personally served on, or sent by certified
23mail to, the person to whom was sent the tax bill for the
24general taxes on the property for the taxable year immediately
25preceding the removal activities. The notice must be delivered
26or sent after the removal activities have been performed, and



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1it must: (i) state the substance of this Section and the
2substance of any ordinance of the municipality implementing
3this Section; (ii) identify the underlying parcel, by common
4description; and (iii) describe the removal activity.
5    (e) A lien under this Section may be enforced by
6proceedings to foreclose as in the case of mortgages or
7mechanics' liens. An action to foreclose a lien under this
8Section must be commenced within 2 years after the date of
9filing notice of lien.
10    (f) Any person who performs a removal activity by the
11authority of the municipality may, in his or her own name, file
12a lien and foreclose on that lien in the same manner as a
13municipality under this Section.
14    (g) A failure to file a foreclosure action does not, in any
15way, affect the validity of the lien against the underlying
17    (h) Upon payment of the lien cost by the owner of the
18underlying parcel after notice of lien has been filed, the
19municipality (or its agent under subsection (f)) shall release
20the lien, and the release may be filed of record by the owner
21at his or her sole expense as in the case of filing notice of
23    (i) For the purposes of this Section:
24    "Lien cost" means the removal cost and the filing costs for
25any notice of lien under subsection (b).
26    "Removal activity" means any activity for which a removal



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1cost was incurred.
2    "Removal cost" means a removal cost as defined under
3Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13, or 11-20-17.
4    "Underlying parcel" means a parcel of private property upon
5which a removal activity was performed.
6    "Year" means a 365-day period.
7    (j) This Section applies only to liens filed after August
814, 2009 (the effective date of Public Act 96-462).
9    (k) This Section shall not apply to a lien filed pursuant
10to Section 11-20-15.1.
11(Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10;
1296-1000, eff. 7-2-10.)
13    (65 ILCS 5/11-20-15.1)
14    Sec. 11-20-15.1. Lien for costs of removal, securing, and
15enclosing on abandoned residential property.
16    (a) If the municipality elects to incur a removal cost
17pursuant to subsection (d) of Section 11-20-7, subsection (d)
18of Section 11-20-8, subsection (d) of Section 11-20-12, or
19subsection (e) of Section 11-20-13, or subsection (i) of
20Section 11-20-17, or a securing or enclosing cost pursuant to
21Section 11-31-1.01 with respect to an abandoned residential
22property, then that cost is a lien upon the underlying parcel
23of that abandoned residential property. This lien is superior
24to all other liens and encumbrances, except tax liens and as
25otherwise provided in this Section.



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1    (b) To perfect a lien under this Section, the municipality
2must, within one year after the cost is incurred for the
3activity, file notice of the lien in the office of the recorder
4in the county in which the abandoned residential property is
5located or, if the abandoned residential property is registered
6under the Torrens system, in the office of the Registrar of
7Titles of that county, a sworn statement setting out:
8        (1) a description of the abandoned residential
9    property that sufficiently identifies the parcel;
10        (2) the amount of the cost of the activity;
11        (3) the date or dates when the cost for the activity
12    was incurred by the municipality; and
13        (4) a statement that the lien has been filed pursuant
14    to subsection (d) of Section 11-20-7, subsection (d) of
15    Section 11-20-8, subsection (d) of Section 11-20-12,
16    subsection (e) of Section 11-20-13, subsection (i) of
17    Section 11-20-17, or Section 11-31-1.01, as applicable.
18    If, for any abandoned residential property, the
19municipality engaged in any activity on more than one occasion
20during the course of one year, then the municipality may
21combine any or all of the costs of each of those activities
22into a single notice of lien. In order for a municipality to
23perfect a lien for costs pursuant to Section 11-20-17 of this
24Act, the municipality must first investigate and determine
25that, pursuant to subsections (c) and (h) of this Section, the
26underlying parcel is vacant and abandoned residential



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2    (c) To enforce a lien pursuant to this Section, the
3municipality must maintain contemporaneous records that
4include, at a minimum: (i) a dated statement of finding by the
5municipality that the property for which the work is to be
6performed has become abandoned residential property, which
7shall include (1) the date when the property was first known or
8observed to be unoccupied by any lawful occupant or occupants,
9(2) a description of the actions taken by the municipality to
10contact the legal owner or owners of the property identified on
11the recorded mortgage, or, if known, any agent of the owner or
12owners, including the dates such actions were taken, and (3) a
13statement that no contacts were made with the legal owner or
14owners or their agents as a result of such actions, (ii) a
15dated certification by an authorized official of the
16municipality of the necessity and specific nature of the work
17to be performed, (iii) a copy of the agreement with the person
18or entity performing the work that includes the legal name of
19the person or entity, the rate or rates to be charged for
20performing the work, and an estimate of the total cost of the
21work to be performed, (iv) detailed invoices and payment
22vouchers for all payments made by the municipality for such
23work, and (v) a statement as to whether the work was engaged
24through a competitive bidding process, and if so, a copy of all
25proposals submitted by the bidders for such work.
26    (d) A lien under this Section shall be enforceable



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1exclusively at the hearing for confirmation of sale of the
2abandoned residential property that is held pursuant to
3subsection (b) of Section 15-1508 of the Code of Civil
4Procedure and shall be limited to a claim of interest in the
5proceeds of the sale and subject to the requirements of this
6Section. Any mortgagee who holds a mortgage on the property, or
7any beneficiary or trustee who holds a deed of trust on the
8property, may contest the lien or the amount of the lien at any
9time during the foreclosure proceeding upon motion and notice
10in accordance with court rules applicable to motions generally.
11Grounds for forfeiture of the lien or the superior status of
12the lien granted by subsection (a) of this Section shall
13include, but not be limited to, a finding by the court that:
14(i) the municipality has not complied with subsection (b) or
15(c) of this Section, (ii) the scope of the work was not
16reasonable under the circumstances, (iii) the work exceeded the
17authorization for the work to be performed under subsection (a)
18of Section 11-20-7, subsection (a) of Section 11-20-8,
19subsection (a) of Section 11-20-12, subsection (a) of Section
2011-20-13, or subsection (a) of Section 11-31-1.01, as
21applicable, or (iv) the cost of the services rendered or
22materials provided was not commercially reasonable. Forfeiture
23of the superior status of the lien otherwise granted by this
24Section shall not constitute a forfeiture of the lien as a
25subordinate lien.
26    (e) Upon payment of the amount of a lien filed under this



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1Section by the mortgagee, servicer, owner, or any other person,
2the municipality shall release the lien, and the release may be
3filed of record by the person making such payment at the
4person's sole expense as in the case of filing notice of lien.
5    (f) Notwithstanding any other provision of this Section, a
6municipality may not file a lien pursuant to this Section for
7activities performed pursuant to Section 11-20-7, Section
811-20-8, Section 11-20-12, Section 11-20-13, or Section
911-31-1.01, if: (i) the mortgagee or servicer of the abandoned
10residential property has provided notice to the municipality
11that the mortgagee or servicer has performed or will perform
12the remedial actions specified in the notice that the
13municipality otherwise might perform pursuant to subsection
14(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
15subsection (d) of Section 11-20-12, subsection (e) of Section
1611-20-13, or Section 11-31-1.01, provided that the remedial
17actions specified in the notice have been performed or are
18performed or initiated in good faith within 30 days of such
19notice; or (ii) the municipality has provided notice to the
20mortgagee or servicer of a problem with the property requiring
21the remedial actions specified in the notice that the
22municipality otherwise would perform pursuant to subsection
23(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
24subsection (d) of Section 11-20-12, subsection (e) of Section
2511-20-13, or Section 11-31-1.01, and the mortgagee or servicer
26has performed or performs or initiates in good faith the



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1remedial actions specified in the notice within 30 days of such
3    (g) This Section and subsection (d) of Section 11-20-7,
4subsection (d) of Section 11-20-8, subsection (d) of Section
511-20-12, subsection (e) of Section 11-20-13, or Section
611-31-1.01 shall apply only to activities performed, costs
7incurred, and liens filed after the effective date of this
8amendatory Act of the 96th General Assembly. Subsection (i) of
9Section 11-20-17 shall apply only to activities performed,
10costs incurred, and liens filed after the effective date of
11this amendatory Act of the 97th General Assembly.
12    (h) For the purposes of this Section and subsection (d) of
13Section 11-20-7, subsection (d) of Section 11-20-8, subsection
14(d) of Section 11-20-12, subsection (e) of Section 11-20-13,
15subsection (i) of Section 11-20-17, or Section 11-31-1.01:
16    "Abandoned residential property" means any type of
17permanent residential dwelling unit, including detached single
18family structures, and townhouses, condominium units and
19multifamily rental apartments covering the entire property,
20and manufactured homes treated under Illinois law as real
21estate and not as personal property, that has been unoccupied
22by any lawful occupant or occupants for at least 90 days, and
23for which after such 90 day period, the municipality has made
24good faith efforts to contact the legal owner or owners of the
25property identified on the recorded mortgage, or, if known, any
26agent of the owner or owners, and no contact has been made. A



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1property for which the municipality has been given notice of
2the order of confirmation of sale pursuant to subsection (b-10)
3of Section 15-1508 of the Code of Civil Procedure shall not be
4deemed to be an abandoned residential property for the purposes
5of subsection (d) of Section 11-20-7, subsection (d) of Section
611-20-8, subsection (d) of Section 11-20-12, subsection (e) of
7Section 11-20-13, subsection (i) of Section 11-20-17, and
8Section 11-31-1.01 of this Code.
9    "MERS program" means the nationwide Mortgage Electronic
10Registration System approved by Fannie Mae, Freddie Mac, and
11Ginnie Mae that has been created by the mortgage banking
12industry with the mission of registering every mortgage loan in
13the United States to lawfully make information concerning each
14residential mortgage loan and the property securing it
15available by Internet access to mortgage originators,
16servicers, warehouse lenders, wholesale lenders, retail
17lenders, document custodians, settlement agents, title
18companies, insurers, investors, county recorders, units of
19local government, and consumers.
20    (i) Any entity or person who performs a removal, securing,
21or enclosing activity pursuant to the authority of a
22municipality under subsection (d) of Section 11-20-7,
23subsection (d) of Section 11-20-8, subsection (d) of Section
2411-20-12, subsection (e) of Section 11-20-13, or Section
2511-31-1.01, may, in its, his, or her own name, file a lien
26pursuant to subsection (b) of this Section and appear in a



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1foreclosure action on that lien pursuant to subsection (d) of
2this Section in the place of the municipality, provided that
3the municipality shall remain subject to subsection (c) of this
4Section, and such party shall be subject to all of the
5provisions in this Section as if such party were the
7    (i-5) All amounts received by the municipality for costs
8incurred pursuant to this Section for which the municipality
9has been reimbursed under Section 7.31 of the Illinois Housing
10Development Act shall be remitted to the State Treasurer for
11deposit into the Abandoned Residential Property Municipality
12Relief Fund.
13    (j) If prior to subsection (d) of Section 11-20-7,
14subsection (d) of Section 11-20-8, subsection (d) of Section
1511-20-12, and subsection (e) of Section 11-20-13 becoming
16inoperative a lien is filed pursuant to any of those
17subsections, then the lien shall remain in full force and
18effect after the subsections have become inoperative, subject
19to all of the provisions of this Section. If prior to the
20repeal of Section 11-31-1.01 a lien is filed pursuant to
21Section 11-31-1.01, then the lien shall remain in full force
22and effect after the repeal of Section 11-31-1.01, subject to
23all of the provisions of this Section.
24(Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)
25    (65 ILCS 5/11-20-17 new)



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1    Sec. 11-20-17. Vacant property.
2    (a) For the purposes of minimizing the hazards to persons
3and property resulting from vacant property, the corporate
4authorities of each municipality may, by ordinance, prescribe
5rules or regulations for the maintenance and security of vacant
6property. The corporate authorities of a municipality may
7impose registration fees for vacant property and fines for
8failure to comply with ordinances enacted pursuant to this
9Section. The corporate authority of a municipality that enacts
10an ordinance pursuant to this Section shall transmit a copy of
11that ordinance to the Illinois Housing Development Authority
12within 30 days of the ordinance's enactment. The Illinois
13Housing Development Authority shall post a copy of the
14ordinance on its website within 30 days of receipt.
15    (b) Pursuant to those ordinances, the corporate
16authorities of each municipality, upon directing a notice of
17its determination and finding that the underlying parcel is
18vacant and abandoned residential property by regular or
19certified mail, may hold responsible for maintaining and
20securing a vacant property (i) any owner of the property, (ii)
21any previous owner of the property who conveyed the property
22during the time it was vacant and failed to comply with any
23ordinance regarding the registration of vacant property, (iii)
24any trust beneficiary or other trustee who holds a deed of
25trust on the property, (iv) any mortgagee who holds a mortgage
26on the property, and (v) any assignee of an owner, beneficiary,



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1trustee, or mortgagee.
2    (c) Upon delivery of the notice provided in subsection (b),
3a beneficiary, trustee, or mortgagee seeking to comply with
4ordinances regarding the maintenance or security of vacant
5property may enter that property to remedy any potential
6violation of an ordinance to maintain or secure vacant property
7without an order for possession under the Illinois Mortgage
8Foreclosure Act, provided that entry is not barred by an
9automatic stay issued by a bankruptcy court.
10    (d) Beneficiaries, trustees, mortgagees, and their agents
11and assignees shall be held harmless from and against all
12claims of negligence, civil trespass, and criminal trespass in
13connection with compliance activity under the ordinances for
14the maintenance or security of vacant property, provided that
15the person authorizing or engaging in the compliance activity
16has (i) made a good faith effort to identify any owner and
17occupant of the property and (ii) made a good faith effort to
18contact any owner and occupant in a manner reasonably
19calculated to give the owner and occupant notice that the
20compliance activity is imminent, after the notice provided by
21subsection (b) has been delivered.
22    (e) For the purpose of this Section, "owner" means the
23legal or beneficial owner of an improved or unimproved parcel
24of real estate.
25    (f) For the purpose of this Section, "mortgagee" means (i)
26the holder of an indebtedness, the obligee of a non-monetary



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1obligation secured by a mortgage, any assignee of the mortgage,
2or any person designated or authorized to act on behalf of such
3holder, (ii) any person or entity who previously initiated a
4foreclosure of the vacant property or obtained a foreclosure
5judgment against the vacant property if the deed to vacant
6property has not been transferred to the purchaser at the
7judicial sale, and (iii) any person claiming through a
8mortgagee as successor.
9    (g) For the purpose of this Section, "vacant property"
10means any property having complete or incomplete structures
11that are empty or otherwise uninhabited by persons legally
12entitled to inhabit the structures.
13    (h) For the purpose of this Section, "removal cost" means
14the total value of fees and fines imposed pursuant to rules,
15regulations, or ordinances regarding maintenance, security, or
16demolition of vacant property.
17    (i) To enforce fees and fines pursuant to this Section, a
18municipality has the following options: (i) the municipality
19may elect to obtain a lien upon the underlying property for the
20removal cost in accordance with Section 11-20-15; (ii) in the
21case of an abandoned residential property as defined in Section
2211-20-15.1, the municipality may elect to obtain a lien for the
23removal cost pursuant to Section 11-20-15.1, in which case the
24provisions of Section 11-20-15.1 shall be the exclusive remedy
25for the removal cost; or (iii) the municipality may elect to
26obtain a lien for the removal cost by exercising any



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1enforcement actions available under its police powers or other
2statutory grant of authority.
3    (j) Nothing in this Section prohibits a municipality from
4obtaining and enforcing liens pursuant to any other local,
5State, or federal law.
6    (k) No municipality may enact or enforce an ordinance
7adopted under this Section on or after January 1, 2019. Nothing
8in this subsection (k) affects the power of a municipality to
9enact or continue to enforce, pursuant to the municipality's
10home rule powers or pursuant to any other law other than this
11Section, any ordinance that regulates the maintenance and
12security of vacant property.
13    Section 10. The Code of Civil Procedure is amended by
14changing Sections 15-1506, 15-1508, and 15-1603 as follows:
15    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
16    Sec. 15-1506. Judgment. (a) Evidence. In the trial of a
17foreclosure, the evidence to support the allegations of the
18complaint shall be taken in open court, except:
19    (1) where an allegation of fact in the complaint is not
20denied by a party's verified answer or verified counterclaim,
21or where a party pursuant to subsection (b) of Section 2-610 of
22the Code of Civil Procedure states, or is deemed to have
23stated, in its pleading that it has no knowledge of such
24allegation sufficient to form a belief and attaches the



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1required affidavit, a sworn verification of the complaint or a
2separate affidavit setting forth such fact is sufficient
3evidence thereof against such party and no further evidence of
4such fact shall be required; and
5    (2) where all the allegations of fact in the complaint have
6been proved by verification of the complaint or affidavit, the
7court upon motion supported by an affidavit stating the amount
8which is due the mortgagee, shall enter a judgment of
9foreclosure as requested in the complaint.
10    (b) Instruments. In all cases the evidence of the
11indebtedness and the mortgage foreclosed shall be exhibited to
12the court and appropriately marked, and copies thereof shall be
13filed with the court.
14    (c) Summary and Default Judgments. Nothing in this Section
1515-1506 shall prevent a party from obtaining a summary or
16default judgment authorized by Article II of the Code of Civil
17Procedure. If the mortgagee files a motion to shorten the
18redemption period pursuant to Section 2-1603(b)(4) of this
19Article on or before the date of filing a motion for entry of a
20default judgment, the motions shall be set before the court
21within 30 days of the filing of the motion for default, unless
22the motion brought under Section 2-1603(b)(4) has already been
23heard and denied by the court.
24    (d) Notice of Entry of Default. When any judgment in a
25foreclosure is entered by default, notice of such judgment
26shall be given in accordance with Section 2-1302 of the Code of



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1Civil Procedure.
2    (e) Matters Required in Judgment. A judgment of foreclosure
3shall include the last date for redemption and all rulings of
4the court entered with respect to each request for relief set
5forth in the complaint. The omission of the date for redemption
6shall not extend the time for redemption or impair the validity
7of the judgment.
8    (f) Special Matters in Judgment. Without limiting the
9general authority and powers of the court, special matters may
10be included in the judgment of foreclosure if sought by a party
11in the complaint or by separate motion. Such matters may
12include, without limitation:
13    (1) a manner of sale other than public auction;
14    (2) a sale by sealed bid;
15    (3) an official or other person who shall be the officer to
16conduct the sale other than the one customarily designated by
17the court;
18    (4) provisions for non-exclusive broker listings or
19designating a duly licensed real estate broker nominated by one
20of the parties to exclusively list the real estate for sale;
21    (5) the fees or commissions to be paid out of the sale
22proceeds to the listing or other duly licensed broker, if any,
23who shall have procured the accepted bid;
24    (6) the fees to be paid out of the sale proceeds to an
25auctioneer, if any, who shall have been authorized to conduct a
26public auction sale;



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1    (7) whether and in what manner and with what content signs
2shall be posted on the real estate;
3    (8) a particular time and place at which such bids shall be
5    (9) a particular newspaper or newspapers in which notice of
6sale shall be published;
7    (10) the format for the advertising of such sale, including
8the size, content and format of such advertising, and
9additional advertising of such sale;
10    (11) matters or exceptions to which title in the real
11estate may be subject at the sale;
12    (12) a requirement that title insurance in a specified form
13be provided to a purchaser at the sale, and who shall pay for
14such insurance;
15    (13) whether and to what extent bids with mortgage or other
16contingencies will be allowed;
17    (14) such other matters as approved by the court to ensure
18sale of the real estate for the most commercially favorable
19price for the type of real estate involved.
20    (g) Agreement of the Parties. If all of the parties agree
21in writing on the minimum price and that the real estate may be
22sold to the first person who offers in writing to purchase the
23real estate for such price, and on such other commercially
24reasonable terms and conditions as the parties may agree, then
25the court shall order the real estate to be sold on such terms,
26subject to confirmation of the sale in accordance with Section



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2    (h) Postponement of Proving Priority. With the approval of
3the court prior to the entry of the judgment of foreclosure, a
4party claiming an interest in the proceeds of the sale of the
5mortgaged real estate may defer proving the priority of such
6interest until the hearing to confirm the sale.
7    (i) Effect of Judgment and Lien. (1) Upon the entry of the
8judgment of foreclosure, all rights of a party in the
9foreclosure against the mortgagor provided for in the judgment
10of foreclosure or this Article shall be secured by a lien on
11the mortgaged real estate, which lien shall have the same
12priority as the claim to which the judgment relates and shall
13be terminated upon confirmation of a judicial sale in
14accordance with this Article.
15    (2) Upon the entry of the judgment of foreclosure, the
16rights in the real estate subject to the judgment of
17foreclosure of (i) all persons made a party in the foreclosure
18and (ii) all nonrecord claimants given notice in accordance
19with paragraph (2) of subsection (c) of Section 15-1502, shall
20be solely as provided for in the judgment of foreclosure and in
21this Article.
22(Source: P.A. 85-907.)
23    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
24    Sec. 15-1508. Report of Sale and Confirmation of Sale.
25    (a) Report. The person conducting the sale shall promptly



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



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1    confirming the sale pending the determination of such
2    priority.
3    (b-5) Notice with respect to residential real estate. With
4respect to residential real estate, the notice required under
5subsection (b) of this Section shall be sent to the mortgagor
6even if the mortgagor has previously been held in default. In
7the event the mortgagor has filed an appearance, the notice
8shall be sent to the address indicated on the appearance. In
9all other cases, the notice shall be sent to the mortgagor at
10the common address of the foreclosed property. The notice shall
11be sent by first class mail. Unless the right to possession has
12been previously terminated by the court, the notice shall
13include the following language in 12-point boldface
14capitalized type:
19    (b-10) Notice of confirmation order sent to municipality or
20county. A copy of the confirmation order required under
21subsection (b) shall be sent to the municipality in which the
22foreclosed property is located, or to the county within the
23boundary of which the foreclosed property is located if the
24foreclosed property is located in an unincorporated territory.
25A municipality or county must clearly publish on its website a
26single address to which such notice shall be sent. If a



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1municipality or county does not maintain a website, then the
2municipality or county must publicly post in its main office a
3single address to which such notice shall be sent. In the event
4that a municipality or county has not complied with the
5publication requirement in this subsection (b-10), then such
6notice to the municipality or county shall be provided pursuant
7to Section 2-211 of the Code of Civil Procedure.
8    (c) Failure to Give Notice. If any sale is held without
9compliance with subsection (c) of Section 15-1507 of this
10Article, any party entitled to the notice provided for in
11paragraph (3) of that subsection (c) who was not so notified
12may, by motion supported by affidavit made prior to
13confirmation of such sale, ask the court which entered the
14judgment to set aside the sale. Any such party shall guarantee
15or secure by bond a bid equal to the successful bid at the
16prior sale, unless the party seeking to set aside the sale is
17the mortgagor, the real estate sold at the sale is residential
18real estate, and the mortgagor occupies the residential real
19estate at the time the motion is filed. In that event, no
20guarantee or bond shall be required of the mortgagor. Any
21subsequent sale is subject to the same notice requirement as
22the original sale.
23    (d) Validity of Sale. Except as provided in subsection (c)
24of Section 15-1508, no sale under this Article shall be held
25invalid or be set aside because of any defect in the notice
26thereof or in the publication of the same, or in the



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1proceedings of the officer conducting the sale, except upon
2good cause shown in a hearing pursuant to subsection (b) of
3Section 15-1508. At any time after a sale has occurred, any
4party entitled to notice under paragraph (3) of subsection (c)
5of Section 15-1507 may recover from the mortgagee any damages
6caused by the mortgagee's failure to comply with such paragraph
7(3). Any party who recovers damages in a judicial proceeding
8brought under this subsection may also recover from the
9mortgagee the reasonable expenses of litigation, including
10reasonable attorney's fees.
11    (d-5) Making Home Affordable Program. The court that
12entered the judgment shall set aside a sale held pursuant to
13Section 15-1507, upon motion of the mortgagor at any time prior
14to the confirmation of the sale, if the mortgagor proves by a
15preponderance of the evidence that (i) the mortgagor has
16applied for assistance under the Making Home Affordable Program
17established by the United States Department of the Treasury
18pursuant to the Emergency Economic Stabilization Act of 2008,
19as amended by the American Recovery and Reinvestment Act of
202009, and (ii) the mortgaged real estate was sold in material
21violation of the program's requirements for proceeding to a
22judicial sale. The provisions of this subsection (d-5), except
23for this sentence, shall become inoperative on January 1, 2013
24for all actions filed under this Article after December 31,
252012, in which the mortgagor did not apply for assistance under
26the Making Home Affordable Program on or before December 31,



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2    (e) Deficiency Judgment. In any order confirming a sale
3pursuant to the judgment of foreclosure, the court shall also
4enter a personal judgment for deficiency against any party (i)
5if otherwise authorized and (ii) to the extent requested in the
6complaint and proven upon presentation of the report of sale in
7accordance with Section 15-1508. Except as otherwise provided
8in this Article, a judgment may be entered for any balance of
9money that may be found due to the plaintiff, over and above
10the proceeds of the sale or sales, and enforcement may be had
11for the collection of such balance, the same as when the
12judgment is solely for the payment of money. Such judgment may
13be entered, or enforcement had, only in cases where personal
14service has been had upon the persons personally liable for the
15mortgage indebtedness, unless they have entered their
16appearance in the foreclosure action.
17    (f) Satisfaction. Upon confirmation of the sale, the
18judgment stands satisfied to the extent of the sale price less
19expenses and costs. If the order confirming the sale includes a
20deficiency judgment, the judgment shall become a lien in the
21manner of any other judgment for the payment of money.
22    (g) The order confirming the sale shall include,
23notwithstanding any previous orders awarding possession during
24the pendency of the foreclosure, an award to the purchaser of
25possession of the mortgaged real estate, as of the date 30 days
26after the entry of the order, against the parties to the



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1foreclosure whose interests have been terminated. If the court
2has determined that the property is abandoned pursuant to item
3(4) of subsection (b) of Section 2-1603 and the parties whose
4interests have been terminated have not appeared at the hearing
5to confirm the sale, the purchaser shall be awarded possession
6of the mortgaged real estate immediately.
7    An order of possession authorizing the removal of a person
8from possession of the mortgaged real estate shall be entered
9and enforced only against those persons personally named as
10individuals in the complaint or the petition under subsection
11(h) of Section 15-1701 and in the order of possession and shall
12not be entered and enforced against any person who is only
13generically described as an unknown owner or nonrecord claimant
14or by another generic designation in the complaint.
15    Notwithstanding the preceding paragraph, the failure to
16personally name, include, or seek an award of possession of the
17mortgaged real estate against a person in the confirmation
18order shall not abrogate any right that the purchaser may have
19to possession of the mortgaged real estate and to maintain a
20proceeding against that person for possession under Article 9
21of this Code or subsection (h) of Section 15-1701; and
22possession against a person who (1) has not been personally
23named as a party to the foreclosure and (2) has not been
24provided an opportunity to be heard in the foreclosure
25proceeding may be sought only by maintaining a proceeding under
26Article 9 of this Code or subsection (h) of Section 15-1701.



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1(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09;
296-856, eff. 3-1-10; 96-1245, eff. 7-23-10; revised 9-16-10.)
3    (735 ILCS 5/15-1603)  (from Ch. 110, par. 15-1603)
4    Sec. 15-1603. Redemption.
5    (a) Owner of Redemption. Except as provided in subsection
6(b) of Section 15-1402, only an owner of redemption may redeem
7from the foreclosure, and such owner of redemption may redeem
8only during the redemption period specified in subsection (b)
9of Section 15-1603 and only if the right of redemption has not
10been validly waived.
11    (b) Redemption Period.
12        (1) In the foreclosure of a mortgage of real estate
13    which is residential real estate at the time the
14    foreclosure is commenced, the redemption period shall end
15    on the later of (i) the date 7 months from the date the
16    mortgagor or, if more than one, all the mortgagors (A) have
17    been served with summons or by publication or (B) have
18    otherwise submitted to the jurisdiction of the court, or
19    (ii) the date 3 months from the date of entry of a judgment
20    of foreclosure.
21        (2) In all other foreclosures, the redemption period
22    shall end on the later of (i) the date 6 months from the
23    date the mortgagor or, if more than one, all the mortgagors
24    (A) have been served with summons or by publication or (B)
25    have otherwise submitted to the jurisdiction of the court,



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1    or (ii) the date 3 months from the date of entry of a
2    judgment of foreclosure.
3        (3) Notwithstanding paragraphs (1) and (2), the
4    redemption period shall end at the later of the expiration
5    of any reinstatement period provided for in Section 15-1602
6    or the date 60 days after the date the judgment of
7    foreclosure is entered, if the court finds that (i) the
8    value of the mortgaged real estate as of the date of the
9    judgment is less than 90% of the amount specified pursuant
10    to subsection (d) of Section 15-1603 and (ii) the mortgagee
11    waives any and all rights to a personal judgment for a
12    deficiency against the mortgagor and against all other
13    persons liable for the indebtedness or other obligations
14    secured by the mortgage.
15        (4) Notwithstanding paragraphs (1) and (2), the
16    redemption period shall end on the date 30 days after the
17    date the judgment of foreclosure is entered if, upon motion
18    and notice in accordance with court rules applicable to
19    motions generally, the court finds that the mortgaged real
20    estate has been abandoned. In cases where the redemption
21    period is shortened on account of abandonment, the
22    reinstatement period shall not extend beyond the
23    redemption period as shortened.
24            (A) The court may find that the mortgaged real
25        estate is abandoned if the mortgagee proves, by a
26        preponderance of the evidence, that the mortgaged real



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1        estate has been abandoned. To determine that the
2        property has been abandoned, the court must find the
3        following:
4                (i) the mortgaged property is not actually
5            occupied; and
6                (ii) at least one of the following applies:
7                    (aa) more than 5 attempts to contact the
8                mortgagor have been made, at least one by
9                certified mail and one by telephone, if there
10                is a working telephone number for the
11                mortgagor; and at least 2 of the following
12                supporting facts are true:
13                        (I) construction was initiated on the
14                    property and was discontinued prior to
15                    completion, leaving the building
16                    unsuitable for occupancy, and no
17                    construction has taken place for at least 6
18                    months;
19                        (II) the property has had more than
20                    one uncorrected municipal code violation
21                    over the past year, or has been declared
22                    unfit for occupancy and ordered to remain
23                    vacant and unoccupied by the municipal
24                    authorities;
25                        (III) gas, electric, or water service
26                    to the entire premises has been terminated



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1                    or is threatened with termination;
2                        (IV) windows or entrances to the
3                    premises are boarded up or closed off, or
4                    multiple window panes are broken and
5                    unrepaired;
6                        (V) doors to the premises are smashed
7                    through, broken off, unhinged, or
8                    continuously unlocked;
9                        (VI) the police or sheriff's office
10                    has received at least 2 reports of
11                    trespassers on the premises or of
12                    vandalism or other illegal acts being
13                    committed on the premises in the past 6
14                    months;
15                    (bb) 2 or more attempts to contact the
16                mortgagor have been made and there exist
17                written statements of the mortgagor, the
18                mortgagor's personal representatives or
19                assigns, including documents of conveyance,
20                which indicate a clear intent to abandon the
21                premises; or
22                    (cc) 2 or more attempts to contact the
23                mortgagor have been made and the property is a
24                vacant lot.
25            (B) Notwithstanding the provisions of this
26        subsection, if an appearance by the mortgagor or other



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1        occupant is made at or before the hearing on a motion
2        brought pursuant to this subsection, the mortgaged
3        real estate shall not be deemed abandoned and the court
4        shall deny the motion to shorten the redemption period.
5    (c) Extension of Redemption Period.
6        (1) Once expired, the right of redemption provided for
7    in Sections 15-1603 or 15-1604 shall not be revived. The
8    period within which the right of redemption provided for in
9    Sections 15-1603 or 15-1604 may be exercised runs
10    independently of any action by any person to enforce the
11    judgment of foreclosure or effect a sale pursuant thereto.
12    Neither the initiation of any legal proceeding nor the
13    order of any court staying the enforcement of a judgment of
14    foreclosure or the sale pursuant to a judgment or the
15    confirmation of the sale, shall have the effect of tolling
16    the running of the redemption period.
17        (2) If a court has the authority to stay, and does
18    stay, the running of the redemption period, or if the
19    redemption period is extended by any statute of the United
20    States, the redemption period shall be extended until the
21    expiration of the same number of days after the expiration
22    of the stay order as the number of days remaining in the
23    redemption period at the time the stay order became
24    effective, or, if later, until the expiration of 30 days
25    after the stay order terminates. If the stay order
26    terminates more than 30 days prior to the expiration of the



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1    redemption period, the redemption period shall not be
2    extended.
3    (d) Amount Required to Redeem. The amount required to
4redeem shall be the sum of:
5        (1) The amount specified in the judgment of
6    foreclosure, which shall consist of (i) all principal and
7    accrued interest secured by the mortgage and due as of the
8    date of the judgment, (ii) all costs allowed by law, (iii)
9    costs and expenses approved by the court, (iv) to the
10    extent provided for in the mortgage and approved by the
11    court, additional costs, expenses and reasonable
12    attorneys' fees incurred by the mortgagee, (v) all amounts
13    paid pursuant to Section 15-1505 and (vi) per diem interest
14    from the date of judgment to the date of redemption
15    calculated at the mortgage rate of interest applicable as
16    if no default had occurred; and
17        (2) The amount of other expenses authorized by the
18    court which the mortgagee reasonably incurs between the
19    date of judgment and the date of redemption, which shall be
20    the amount certified by the mortgagee in accordance with
21    subsection (e) of Section 15-1603.
22    (e) Notice of Intent to Redeem. An owner of redemption who
23intends to redeem shall give written notice of such intent to
24redeem to the mortgagee's attorney of record specifying the
25date designated for redemption and the current address of the
26owner of redemption for purposes of receiving notice. Such



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1owner of redemption shall file with the clerk of the court a
2certification of the giving of such notice. The notice of
3intent to redeem must be received by the mortgagee's attorney
4at least 15 days (other than Saturday, Sunday or court holiday)
5prior to the date designated for redemption. The mortgagee
6shall thereupon file with the clerk of the court and shall give
7written notice to the owner of redemption at least three days
8(other than Saturday, Sunday or court holiday) before the date
9designated for redemption a certification, accompanied by
10copies of paid receipts or appropriate affidavits, of any
11expenses authorized in paragraph (2) of subsection (d) of
12Section 15-1603. If the mortgagee fails to serve such
13certification within the time specified herein, then the owner
14of redemption intending to redeem may redeem on the date
15designated for redemption in the notice of intent to redeem,
16and the mortgagee shall not be entitled to payment of any
17expenses authorized in paragraph (2) of subsection (d) of
18Section 15-1603.
19    (f) Procedure for Redemption.
20        (1) An owner of redemption may redeem the real estate
21    from the foreclosure by paying the amount specified in
22    subsection (d) of Section 15-1603 to the mortgagee or the
23    mortgagee's attorney of record on or before the date
24    designated for redemption pursuant to subsection (e) of
25    Section 15-1603.
26        (2) If the mortgagee refuses to accept payment or if



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1    the owner of redemption redeeming from the foreclosure
2    objects to the reasonableness of the additional expenses
3    authorized in paragraph (2) of subsection (d) of Section
4    15-1603 and certified in accordance with subsection (e) of
5    Section 15-1603, the owner of redemption shall pay the
6    certified amount to the clerk of the court on or before the
7    date designated for redemption, together with a written
8    statement specifying the expenses to which objection is
9    made. In such case the clerk shall pay to the mortgagee the
10    amount tendered minus the amount to which the objection
11    pertains.
12        (3) Upon payment to the clerk, whether or not the owner
13    of redemption files an objection at the time of payment,
14    the clerk shall give a receipt of payment to the person
15    redeeming from the foreclosure, and shall file a copy of
16    that receipt in the foreclosure record. Upon receipt of the
17    amounts specified to be paid to the mortgagee pursuant to
18    this Section, the mortgagee shall promptly furnish the
19    mortgagor with a release of the mortgage or satisfaction of
20    the judgment, as appropriate, and the evidence of all
21    indebtedness secured by the mortgage shall be cancelled.
22    (g) Procedure Upon Objection. If an objection is filed by
23an owner of redemption in accordance with paragraph (2) of
24subsection (f) of Section 15-1603, the clerk shall hold the
25amount to which the objection pertains until the court orders
26distribution of those funds. The court shall hold a hearing



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1promptly to determine the distribution of any funds held by the
2clerk pursuant to such objection. Each party shall pay its own
3costs and expenses in connection with any objection, including
4attorneys' fees, subject to Section 2-611 of the Code of Civil
6    (h) Failure to Redeem. Unless the real estate being
7foreclosed is redeemed from the foreclosure, it shall be sold
8as provided in this Article.
9    (i) Mortgagees electing to release, discharge, or abandon
10their mortgage interest in any property shall execute a binding
11written release declaring their discharge of the related lien
12and shall, within 30 days, record the release as provided in
13Section 28 of the Conveyances Act. The failure to record a
14written release creates a presumption that the mortgagee of
15record, or any of its, his, or her successors in interest, has
16knowingly interfered, delayed, and prevented the enforcement
17of any municipal ordinance concerning property.
18(Source: P.A. 86-974.)
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".