SB0016ham006 97TH GENERAL ASSEMBLY

Rep. Karen A. Yarbrough

Filed: 3/2/2012

09700SB0016ham006 LRB097 06631 AJO 66849 a

AMENDMENT TO SENATE BILL 16

AMENDMENT NO. ______. Amend Senate Bill 16 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Municipal Code is amended by adding Section 11-20-17 as follows:

(65 ILCS 5/11-20-17 new)

Sec. 11-20-17. Mortgagee maintenance requirements for vacant residential property.

(a) For the purposes of minimizing the hazards to persons and property resulting from vacant residential property, the corporate authorities of each municipality may adopt an ordinance that is substantially in compliance with this Section requiring a mortgagee to maintain, register, and secure vacant residential property. The corporate authority of a municipality that enacts an ordinance pursuant to this Section shall transmit a copy of that ordinance to the Illinois Housing Development Authority within 30 days after the ordinance's enactment. The Illinois Housing Development Authority shall, within 30 days after the receipt of an ordinance, post on its website a copy of the ordinance or a link to a site where the municipality has the ordinance posted on the municipality's website.

(b) For the purpose of this Section, "owner" means the legal or beneficial owner of an improved or unimproved parcel of real estate.

(c) For the purpose of this Section, "mortgagee" means: (i) the holder of an indebtedness, the obligee of a non-monetary obligation secured by a mortgage, any assignee of the mortgage, or any person designated or authorized to act on behalf of a holder; (ii) any person or entity that previously initiated a foreclosure of the vacant residential property or obtained a foreclosure judgment against the vacant residential property if the deed to the vacant residential property has not been transferred to the purchaser at the judicial sale; (iii) any person claiming through a mortgagee as successor; and (iv) any person identified as such in a recorded document which has not been released, assigned, or superseded of record.

(d) For the purpose of this Section, "mortgage" means any consensual lien created by a written instrument which grants or retains an interest in real estate to secure a debt or other obligation. The term includes, without limitation: (i) mortgages securing reverse mortgage loans; (ii) mortgages securing revolving credit loans; (iii) every deed conveying real estate, although an absolute conveyance in its terms, which shall have been intended only as a security in the nature of a mortgage; and (iv) equitable mortgages. The term does not include: (i) a mechanics or materialman lien; (ii) a judgment; (iii) a receiver's certificate, or (iv) a tax lien.

(e) For the purpose of this Section, "vacant residential property" means any real estate, other than a single tract of agricultural real estate consisting of more than 40 acres, improved with a complete structure containing one or more dwelling units or an incomplete structure if the real estate is zoned for residential development, where the structure is empty or otherwise uninhabited and the structure or lot is in need of maintenance, repair, or securing, and with respect to which one or more of the following conditions exist:

(1) all lawful business or construction operations have ceased for 6 months;

(2) it has been declared unfit for occupancy and ordered to remain vacant and unoccupied by municipal authorities or a court of competent jurisdiction;

(3) no construction or legal repairs have commenced for 6 months;

(4) the doors or windows are smashed through, broken, unhinged, removed, or continuously unlocked;

(5) law enforcement officials have received at least one report of trespassers or vandalism or other illegal acts being committed at the property in the last 6 months;

(6) gas, electrical, or water service to the entire premises has been terminated.

A property shall not be considered vacant, for purposes of this Section, if on the property: (i) there is an unoccupied building that is undergoing construction, renovation, or rehabilitation that is proceeding diligently to completion, and the building is in compliance with all applicable ordinances, codes, regulations, and laws; (ii) there is a building that is occupied on a seasonal basis, but is otherwise secure; (iii) there is a secure building on which there are bona fide rental or sale signs; (iv) there is a building that is secure, but is the subject of a probate action, action to quiet title, or other ownership dispute; or (v) there is otherwise a building that is secure and in substantial compliance with all applicable ordinances, codes, regulations, and laws.

(f) For the purpose of this Section, "default" means: (i) with respect to a building containing 4 or fewer dwelling units, when a mortgagor is 60 days past due on that mortgagor's obligation to pay under a mortgage or a note secured by that mortgage; and (ii) with respect to all other buildings, when a mortgagor is 90 days past due on that mortgagor's obligation to pay under a mortgage or a note secured by that mortgage.

(g) Liability.

(1) A mortgagee's acts or omissions required by any ordinance enacted pursuant to this Section shall not subject the mortgagee to civil or criminal liability unless the act or omission constitutes gross negligence or willful, wanton, or intentional misconduct. This provision shall not waive any requirement to obtain permits or licenses for performing certain work required by an ordinance enacted under this Section, or the penalties provided for failure to do so.

(2) If a vacant residential property is registered pursuant to an ordinance enacted under this Section, only the registered mortgagee shall be liable under the ordinance during the registration period. Nothing in this Section shall bar the concurrent enforcement of any law or ordinance against the owner of a property.

(h) Registration.

(1) A municipality may require that the mortgagee of any residential property that has become vacant and is not registered as vacant by an owner, if applicable, within the later of 30 days after the residential property becomes vacant and unregistered or 60 days after a default, file a registration statement with the municipality. A municipality may charge a reasonable fee for any registration, which fee shall not exceed $500. The registration shall remain valid for 6 months from the date of registration. The mortgagee shall be required to renew the registration every 6 months as long as the building remains vacant. The mortgagee shall notify, in writing, the municipality within 20 days of any change in the registration information. The registration statement shall be deemed prima facie proof of the statements therein contained in any administrative enforcement proceeding or court proceeding instituted under an ordinance enacted pursuant to this Section by the municipality against the mortgagee with respect to the registered property.

(2) In addition to other information required by the municipality, the registration statement shall include the name, street address, and telephone number of a natural person, 18 years of age or older, or business entity registered with the Secretary of State designated by the mortgagee as an authorized agent for receiving notices of code violations and for receiving process in any court proceeding or administrative enforcement proceeding on behalf of the mortgagee in connection with enforcement of an ordinance enacted pursuant to this Section. A mortgagee meeting these criteria may designate itself as agent. By designating an authorized agent under an ordinance enacted pursuant to this Section, a mortgagee consents to receive any and all notices of violations of an ordinance enacted pursuant to this Section concerning the registered building and all process in any court proceeding or administrative enforcement proceeding brought to enforce an ordinance enacted pursuant to this Section with respect to the registered building by service of the notice or process on the authorized agent. Any mortgagee that has designated an authorized agent under the provisions of an ordinance enacted pursuant to this Section shall be deemed to consent to the continuation of the agent's designation for the purposes of an ordinance enacted pursuant to this Section until the mortgagee notifies the municipality of a change of authorized agent or until the mortgagee files a new registration statement. The municipality shall notify in writing the designated agent of all violations and enforcement proceedings brought under an ordinance enacted pursuant to this Section.

(i) A municipality may require that the mortgagee of any residential property that has become vacant and which is not otherwise registered as vacant by an owner, if applicable, within the later of 30 days after the residential property becomes vacant and unregistered, if applicable, or 60 days after a default:

(1) enclose and secure the vacant residential property so that all doors and windows are closed and secured, using: secure doors; windows without broken or cracked panes; commercial-quality metal security panels, filled with like-kind material as the surrounding wall; or plywood installed and secured in accordance with rules and regulations issued by the municipality. At least one building entrance shall be accessible from the exterior and secured with a door that is locked to allow access only to authorized persons. If 2 or more exit doors exist, a minimum of 2 exit doors shall be available to exit from the interior of the building, with at least one exit door available per 150 linear feet of horizontal travel at ground-floor level;

(2) maintain all grass and weeds on the vacant residential property below 10 inches in height and cut and remove all dead or broken trees, tree limbs, or shrubbery;

(3) clear or remove snow from the walkway leading to the main entry door, and any public sidewalk on or adjoining the vacant residential property;

(4) abate the accumulation of debris, trash, and litter that does not constitute personal property on any portion of the exterior of the vacant residential property;

(5) reasonably maintain fences and gates;

(6) reasonably maintain the structural integrity of stairs and steps that lead to the main entrance of the building;

(7) winterize the vacant residential property, which shall mean cleaning all toilets and completely draining all plumbing and heating systems;

(8) maintain and secure the exterior of the building;

(9) post a sign affixed to the building indicating the information required by the municipality. A sign shall be legible and no smaller than 8.5 inches by 11 inches and placed in such a location so as to be visible from the nearest public street or sidewalk, whichever is nearer; and if there is any alley adjacent to the property, a sign shall also be posted so as to be visible from the alley;

(10) maintain the building in a secure and closed condition and maintain any required sign until the vacant residential property is reoccupied or demolished with all permits required by the municipality. If during the registration period and following the initial boarding and securing of the building in compliance with an ordinance enacted pursuant to this Section the municipality notifies the mortgagee in writing that the vacant residential property was found unsecured or open or it has been judicially or administratively found to be unsecured or open on 2 separate occasions at least 30 days apart, the municipality may require that the vacant residential property shall thereafter be secured only with commercial-quality metal security panels or a method deemed equivalent by the municipality;

(11) inspect the vacant residential property on a monthly basis. A mortgagee may elect to inspect any vacant residential property on a more frequent basis; and

(12) exterminate vermin and pests on the exterior of the property.

(j) A municipality may require that, beginning 45 days after a default, a mortgagee determine, on a monthly basis, if the building on the real estate subject to its mortgage is vacant. A municipality may provide that this determination may be made by communication with the mortgagor, a visual inspection of the real estate, or other means reasonably calculated to determine if the building is vacant.

(k) A municipality adopting an ordinance pursuant to this Section may impose a fine of not more than $1,000 and not less than $500 for each offense. Every day that a violation continues shall constitute a separate and distinct offense. The following shall be affirmative defenses under any ordinance adopted pursuant to this Section:

(1) that at the time of the violation the building was occupied by any number of persons lawfully or unlawfully;

(2) that the owner or another mortgagee has registered the building with the municipality and that registration is current at the time of the violation;

(3) that the mortgagee is barred from taking any action required by an ordinance enacted under this Section by an automatic stay pursuant to a bankruptcy proceeding, provided that the mortgagee tenders evidence of that proceeding including the bankruptcy case number;

(4) that the mortgagee has cured all violations within 30 days after receiving written notice of such violations. Notice sent by U.S. mail shall be deemed received 7 days after mailing. An affidavit shall be conclusive proof of mailing;

(5) that at the time of the violation, the mortgage was not in default;

(6) that at the time of the violation, the mortgagee was not the holder of the senior lien on the real estate;

(7) that a receiver is appointed for the property by a court of competent jurisdiction;

(8) that the mortgagee has diligently applied for a permit required to comply with any obligation under an ordinance enacted pursuant to this Section, and a permit has not yet been issued;

(9) that in a foreclosure of the property, the owner or mortgagor took any of the following actions:

(i) filed any pleading which asserts a claim against the mortgagee or a defense;

(ii) filed any motion which asserts a defense or claim against the mortgagee;

(iii) filed any discovery request for response by the mortgagee; or

(iv) filed a request for mediation.

(l) Termination of ordinance requirements.

(1) Upon the occurrence of any of the following, the requirements of any ordinance enacted pursuant to this Section shall terminate with respect to a mortgagee:

(i) a recorded assignment of the mortgagee's mortgage; or

(ii) a recorded satisfaction or release of the mortgagee's mortgage.

(2) Upon the occurrence of any of the following, the requirements of any ordinance enacted pursuant to this Section shall terminate with respect to a vacant residential property:

(i) a recorded conveyance of title to the underlying real estate, pursuant to foreclosure proceedings or otherwise;

(ii) the building ceases to be vacant; or

(iii) the building is demolished with all permits required by the municipality.

(m) No municipality may impose requirements for the maintenance, registration, or securing of vacant residential property upon any financial institution that has no interest in the property other than that of a mortgagee, except pursuant to an ordinance that: (1) substantially complies with this Section; and (2) has been posted on the website of the Illinois Housing Development Authority pursuant to subsection (a) of this Section. For purposes of this subsection (m), "financial institution" means a bank, savings bank, savings and loan association, or credit union.

Section 10. The Code of Civil Procedure is amended by changing Sections 15-1503, 15-1506, 15-1508, and 15-1603 as follows:

(735 ILCS 5/15-1503) (from Ch. 110, par. 15-1503)

Sec. 15-1503. Notice of Foreclosure.

(a) A notice of foreclosure, whether the foreclosure is initiated by complaint or counterclaim, made in accordance with this Section and recorded in the county in which the mortgaged real estate is located shall be constructive notice of the pendency of the foreclosure to every person claiming an interest in or lien on the mortgaged real estate, whose interest or lien has not been recorded prior to the recording of such notice of foreclosure. Such notice of foreclosure must be executed by any party or any party's attorney and shall include (i) the names of all plaintiffs and the case number, (ii) the court in which the action was brought, (iii) the names of title holders of record, (iv) a legal description of the real estate sufficient to identify it with reasonable certainty, (v) a common address or description of the location of the real estate and (vi) identification of the mortgage sought to be foreclosed. An incorrect common address or description of the location, or an immaterial error in the identification of a plaintiff or title holder of record, shall not invalidate the lis pendens effect of the notice under this Section. A notice which complies with this Section shall be deemed to comply with Section 2-1901 of the Code of Civil Procedure and shall have the same effect as a notice filed pursuant to that Section; however, a notice which complies with Section 2-1901 shall not be constructive notice unless it also complies with the requirements of this Section.

(b) With respect to residential real estate, a copy of the notice of foreclosure described in subsection (a) of Section 15-1503 shall be sent by first class mail, postage prepaid, to the municipality within the boundary of which the mortgaged real estate is located, or to the county within the boundary of which the mortgaged real estate is located if the mortgaged real estate is located in an unincorporated territory. A municipality or county must clearly publish on its website a single address to which such notice shall be sent. If a municipality or county does not maintain a website, then the municipality or county must publicly post in its main office a single address to which such notice shall be sent. In the event that a municipality or county has not complied with the publication requirement in this subsection (b), then the copy of the such notice to the municipality or county shall be be sent by first class mail, postage prepaid, to the chairperson of the county board or county clerk in the case of a county, to the mayor or city clerk in the case of a city, to the president of the board of trustees or village clerk in the case of a village, or to the president or town clerk in the case of a town provided pursuant to Section 2-211 of the Code of Civil Procedure. Additionally, if the real estate is located in a city with a population of more than 2,000,000, regardless of whether that city has complied with the publication requirement in this subsection (b), the party must, within 10 days after filing the complaint or counterclaim: (i) send by first class mail, postage prepaid, a copy of the notice of foreclosure to the alderman for the ward in which the real estate is located and (ii) file an affidavit with the court attesting to the fact that the notice was sent to the alderman for the ward in which the real estate is located. The failure to send a copy of the notice to the alderman or to file an affidavit as required results in the dismissal without prejudice of the complaint or counterclaim on a motion of a party or the court. If, after the complaint or counterclaim has been dismissed without prejudice, the party refiles the complaint or counterclaim, then the party must again comply with the requirements that the party send by first class mail, postage prepaid, the notice to the alderman for the ward in which the real estate is located and file an affidavit attesting to the fact that the notice was sent.

(Source: P.A. 96-856, eff. 3-1-10.)

(735 ILCS 5/15-1506) (from Ch. 110, par. 15-1506)

Sec. 15-1506. Judgment. (a) Evidence. In the trial of a foreclosure, the evidence to support the allegations of the complaint shall be taken in open court, except:

(1) where an allegation of fact in the complaint is not denied by a party's verified answer or verified counterclaim, or where a party pursuant to subsection (b) of Section 2-610 of the Code of Civil Procedure states, or is deemed to have stated, in its pleading that it has no knowledge of such allegation sufficient to form a belief and attaches the required affidavit, a sworn verification of the complaint or a separate affidavit setting forth such fact is sufficient evidence thereof against such party and no further evidence of such fact shall be required; and

(2) where all the allegations of fact in the complaint have been proved by verification of the complaint or affidavit, the court upon motion supported by an affidavit stating the amount which is due the mortgagee, shall enter a judgment of foreclosure as requested in the complaint.

(b) Instruments. In all cases the evidence of the indebtedness and the mortgage foreclosed shall be exhibited to the court and appropriately marked, and copies thereof shall be filed with the court.

(c) Summary and Default Judgments.

(1) Nothing in this Section 15-1506 shall prevent a party from obtaining a summary or default judgment authorized by Article II of the Code of Civil Procedure.

(2) Judgment on abandoned real estate. A mortgagee may elect to file a motion seeking a finding of abandonment pursuant to paragraph (4) of subsection (b) of Section 15-1603 and concurrently file a motion for summary or default judgment, and both motions shall be given priority and must be set before the court by the circuit clerk within 15 days after filing, so long as one of the following have occurred:

(i) 30 days have transpired since service of the summons on the mortgagor, or, if there is more than one mortgagor, 30 days have transpired since service on all mortgagors, and the mortgagor has not filed any answer or appearance;

(ii) 30 days have transpired since the date of first publication, if service of process is by publication, and the mortgagor has not filed any answer or appearance; or

(iii) 30 days have transpired since all mortgagors have otherwise submitted to the jurisdiction of the court, and the mortgagor has not filed any answer or appearance.

The Court shall proceed to determine if the real estate is abandoned pursuant to the requirements of paragraph (4) of subsection (b) of Section 15-1603 and shall proceed on any motion for default or summary judgment pursuant to the requirements in Article II of the Code of Civil Procedure. If the court finds that the real estate is abandoned, pursuant to Section 15-1603, and also grants the mortgagee's motion for default or summary judgment then the court, if requested, shall immediately enter a judgment of foreclosure as requested in the complaint which shall include the matters identified in Section 15-1506.

(d) Notice of Entry of Default. When any judgment in a foreclosure is entered by default, notice of such judgment shall be given in accordance with Section 2-1302 of the Code of Civil Procedure.

(e) Matters Required in Judgment. A judgment of foreclosure shall include the last date for redemption and all rulings of the court entered with respect to each request for relief set forth in the complaint. The omission of the date for redemption shall not extend the time for redemption or impair the validity of the judgment.

(f) Special Matters in Judgment. Without limiting the general authority and powers of the court, special matters may be included in the judgment of foreclosure if sought by a party in the complaint or by separate motion. Such matters may include, without limitation:

(1) a manner of sale other than public auction;

(2) a sale by sealed bid;

(3) an official or other person who shall be the officer to conduct the sale other than the one customarily designated by the court;

(4) provisions for non-exclusive broker listings or designating a duly licensed real estate broker nominated by one of the parties to exclusively list the real estate for sale;

(5) the fees or commissions to be paid out of the sale proceeds to the listing or other duly licensed broker, if any, who shall have procured the accepted bid;

(6) the fees to be paid out of the sale proceeds to an auctioneer, if any, who shall have been authorized to conduct a public auction sale;

(7) whether and in what manner and with what content signs shall be posted on the real estate;

(8) a particular time and place at which such bids shall be received;

(9) a particular newspaper or newspapers in which notice of sale shall be published;

(10) the format for the advertising of such sale, including the size, content and format of such advertising, and additional advertising of such sale;

(11) matters or exceptions to which title in the real estate may be subject at the sale;

(12) a requirement that title insurance in a specified form be provided to a purchaser at the sale, and who shall pay for such insurance;

(13) whether and to what extent bids with mortgage or other contingencies will be allowed;

(14) such other matters as approved by the court to ensure sale of the real estate for the most commercially favorable price for the type of real estate involved.

(g) Agreement of the Parties. If all of the parties agree in writing on the minimum price and that the real estate may be sold to the first person who offers in writing to purchase the real estate for such price, and on such other commercially reasonable terms and conditions as the parties may agree, then the court shall order the real estate to be sold on such terms, subject to confirmation of the sale in accordance with Section 15-1508.

(h) Postponement of Proving Priority. With the approval of the court prior to the entry of the judgment of foreclosure, a party claiming an interest in the proceeds of the sale of the mortgaged real estate may defer proving the priority of such interest until the hearing to confirm the sale.

(i) Effect of Judgment and Lien. (1) Upon the entry of the judgment of foreclosure, all rights of a party in the foreclosure against the mortgagor provided for in the judgment of foreclosure or this Article shall be secured by a lien on the mortgaged real estate, which lien shall have the same priority as the claim to which the judgment relates and shall be terminated upon confirmation of a judicial sale in accordance with this Article.

(2) Upon the entry of the judgment of foreclosure, the rights in the real estate subject to the judgment of foreclosure of (i) all persons made a party in the foreclosure and (ii) all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15-1502, shall be solely as provided for in the judgment of foreclosure and in this Article.

(Source: P.A. 85-907.)

(735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508)

Sec. 15-1508. Report of Sale and Confirmation of Sale.

(a) Report. The person conducting the sale shall promptly make a report to the court, which report shall include a copy of all receipts and, if any, certificate of sale.

(b) Hearing. Upon motion and notice in accordance with court rules applicable to motions generally, which motion shall not be made prior to sale, the court shall conduct a hearing to confirm the sale. Unless the court finds that (i) a notice required in accordance with subsection (c) of Section 15-1507 or a notice to an alderman required in accordance with subsection (b) of Section 15-1503 was not given, (ii) the terms of sale were unconscionable, (iii) the sale was conducted fraudulently, or (iv) justice was otherwise not done, the court shall then enter an order confirming the sale. The confirmation order shall include a name, address, and telephone number of the holder of the certificate of sale or deed issued pursuant to that certificate or, if no certificate or deed was issued, the purchaser, whom a municipality or county may contact with concerns about the real estate. The confirmation order may also:

(1) approve the mortgagee's fees and costs arising between the entry of the judgment of foreclosure and the confirmation hearing, those costs and fees to be allowable to the same extent as provided in the note and mortgage and in Section 15-1504;

(2) provide for a personal judgment against any party for a deficiency; and

(3) determine the priority of the judgments of parties who deferred proving the priority pursuant to subsection (h) of Section 15-1506, but the court shall not defer confirming the sale pending the determination of such priority; and .

(4) provide that if the court has entered a finding of abandonment pursuant to paragraph (4) of subsection (b) of Section 15-1603, then any personal property remaining in or upon the abandoned mortgaged real estate shall be deemed to have been abandoned by the owner of such personal property and may be disposed of or donated by the holder of the certificate of sale (or, if none, by the purchaser at the sale). In the event of the donation of any such personal property, the holder of the certificate of sale (or, if none, the purchaser at the sale) may transfer the donated property with a bill of sale. No mortgagee or its successor or assign, holder of a certificate of sale, or purchaser at the sale shall be liable for any such disposal or donation of personal property.

(b-5) Notice with respect to residential real estate. With respect to residential real estate, the notice required under subsection (b) of this Section shall be sent to the mortgagor even if the mortgagor has previously been held in default. In the event the mortgagor has filed an appearance, the notice shall be sent to the address indicated on the appearance. In all other cases, the notice shall be sent to the mortgagor at the common address of the foreclosed property. The notice shall be sent by first class mail. Unless the right to possession has been previously terminated by the court, the notice shall include the following language in 12-point boldface capitalized type:

IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO

REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF

POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE

ILLINOIS MORTGAGE FORECLOSURE LAW.

(b-6) Notice with respect to real estate that has been declared abandoned. With respect to real estate that has been declared abandoned, the notice required in accordance with subsection (b) of this Section shall be sent to the mortgagor even if the mortgagor has previously been held in default. The notice shall be sent to the address indicated on the affidavit of return of service. In all other cases, the notice shall be sent to the mortgagor at the common address of the foreclosed real estate. The notice shall be sent by first class mail. The notice shall include the following language in 12-point boldface capitalized type:

THE MORTGAGEE HAS ASKED THE COURT TO DECLARE THAT THE OWNER HAS

ABANDONED ALL OF HIS OR HER PERSONAL PROPERTY LOCATED AT THE

FORECLOSED REAL ESTATE. IF THAT MOTION IS GRANTED, THE PERSONAL

PROPERTY CAN BE DISPOSED OF AND REMOVED BY THE MORTGAGEE. THE

COURT WILL RULE ON THIS ISSUE AT THE TIME, DATE, AND LOCATION

OF THE ATTACHED MOTION.

(b-10) Notice of confirmation order sent to municipality or county. With respect to residential real estate, a A copy of the confirmation order required under subsection (b) shall be sent by first class mail, postage prepaid, to the municipality in which the foreclosed property is located, or to the county within the boundary of which the foreclosed property is located if the foreclosed property is located in an unincorporated territory. A municipality or county must clearly publish on its website a single address to which such order notice shall be sent. If a municipality or county does not maintain a website, then the municipality or county must publicly post in its main office a single address to which such order notice shall be sent. In the event that a municipality or county has not complied with the publication requirement in this subsection (b-10), then the copy of the order for such notice to the municipality or county shall be sent by first class mail to the chairperson of the county board or county clerk in the case of a county, to the mayor or city clerk in the case of a city, to the president of the board of trustees or village clerk in the case of a village, or the president or town clerk in the case of a town. Additionally, if the real estate is located in a city with a population of more than 2,000,000, regardless of whether that city has complied with the publication requirements of this subsection (b-10), the party filing the complaint or counterclaim must, within 10 days after the entry of the confirmation order: (i) send by first class mail, postage prepaid, a copy of the confirmation order to the alderman for the ward in which the real estate is located and (ii) file an affidavit attesting to the fact that a copy of the confirmation order was sent to the alderman for the ward in which the real estate is located provided pursuant to Section 2-211 of the Code of Civil Procedure.

(c) Failure to Give Notice. If any sale is held without compliance with subsection (c) of Section 15-1507 of this Article, any party entitled to the notice provided for in paragraph (3) of that subsection (c) who was not so notified may, by motion supported by affidavit made prior to confirmation of such sale, ask the court which entered the judgment to set aside the sale. Any such party shall guarantee or secure by bond a bid equal to the successful bid at the prior sale, unless the party seeking to set aside the sale is the mortgagor, the real estate sold at the sale is residential real estate, and the mortgagor occupies the residential real estate at the time the motion is filed. In that event, no guarantee or bond shall be required of the mortgagor. Any subsequent sale is subject to the same notice requirement as the original sale.

(d) Validity of Sale. Except as provided in subsection (c) of Section 15-1508, no sale under this Article shall be held invalid or be set aside because of any defect in the notice thereof or in the publication of the same, or in the proceedings of the officer conducting the sale, except upon good cause shown in a hearing pursuant to subsection (b) of Section 15-1508. At any time after a sale has occurred, any party entitled to notice under paragraph (3) of subsection (c) of Section 15-1507 may recover from the mortgagee any damages caused by the mortgagee's failure to comply with such paragraph (3). Any party who recovers damages in a judicial proceeding brought under this subsection may also recover from the mortgagee the reasonable expenses of litigation, including reasonable attorney's fees.

(d-5) Making Home Affordable Program. The court that entered the judgment shall set aside a sale held pursuant to Section 15-1507, upon motion of the mortgagor at any time prior to the confirmation of the sale, if the mortgagor proves by a preponderance of the evidence that (i) the mortgagor has applied for assistance under the Making Home Affordable Program established by the United States Department of the Treasury pursuant to the Emergency Economic Stabilization Act of 2008 (Public Law 110-343, Div. A.), as amended by the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), and (ii) the mortgaged real estate was sold in material violation of the program's requirements for proceeding to a judicial sale. The provisions of this subsection (d-5), except for this sentence, shall become inoperative on January 1, 2013 for all actions filed under this Article after December 31, 2012, in which the mortgagor did not apply for assistance under the Making Home Affordable Program on or before December 31, 2012.

(e) Deficiency Judgment. In any order confirming a sale pursuant to the judgment of foreclosure, the court shall also enter a personal judgment for deficiency against any party (i) if otherwise authorized and (ii) to the extent requested in the complaint and proven upon presentation of the report of sale in accordance with Section 15-1508. Except as otherwise provided in this Article, a judgment may be entered for any balance of money that may be found due to the plaintiff, over and above the proceeds of the sale or sales, and enforcement may be had for the collection of such balance, the same as when the judgment is solely for the payment of money. Such judgment may be entered, or enforcement had, only in cases where personal service has been had upon the persons personally liable for the mortgage indebtedness, unless they have entered their appearance in the foreclosure action.

(f) Satisfaction. Upon confirmation of the sale, the judgment stands satisfied to the extent of the sale price less expenses and costs. If the order confirming the sale includes a deficiency judgment, the judgment shall become a lien in the manner of any other judgment for the payment of money.

(g) The order confirming the sale shall include, notwithstanding any previous orders awarding possession during the pendency of the foreclosure, an award to the purchaser of possession of the mortgaged real estate, as of the date 30 days after the entry of the order, against the parties to the foreclosure whose interests have been terminated. If the court has determined that the real estate is abandoned pursuant to paragraph (4) of subsection (b) of Section 2-1603 and the parties whose interests have been terminated have not appeared at the hearing to confirm the sale, the purchaser shall be awarded possession of the mortgaged real estate immediately.

An order of possession authorizing the removal of a person from possession of the mortgaged real estate shall be entered and enforced only against those persons personally named as individuals in the complaint or the petition under subsection (h) of Section 15-1701 and in the order of possession and shall not be entered and enforced against any person who is only generically described as an unknown owner or nonrecord claimant or by another generic designation in the complaint.

Notwithstanding the preceding paragraph, the failure to personally name, include, or seek an award of possession of the mortgaged real estate against a person in the confirmation order shall not abrogate any right that the purchaser may have to possession of the mortgaged real estate and to maintain a proceeding against that person for possession under Article 9 of this Code or subsection (h) of Section 15-1701; and possession against a person who (1) has not been personally named as a party to the foreclosure and (2) has not been provided an opportunity to be heard in the foreclosure proceeding may be sought only by maintaining a proceeding under Article 9 of this Code or subsection (h) of Section 15-1701.

(h) With respect to mortgaged real estate containing 5 or more dwelling units, the order confirming the sale shall also provide that (i) the mortgagor shall transfer to the purchaser the security deposits, if any, that the mortgagor received to secure payment of rent or to compensate for damage to the mortgaged real estate from any current occupant of a dwelling unit of the mortgaged real estate, as well as any statutory interest that has not been paid to the occupant, and (ii) the mortgagor shall provide an accounting of the security deposits that are transferred, including the name and address of each occupant for whom the mortgagor holds the deposit and the amount of the deposit and any statutory interest.

(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10; 96-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff. 8-26-11.)

(735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)

Sec. 15-1603. Redemption.

(a) Owner of Redemption. Except as provided in subsection (b) of Section 15-1402, only an owner of redemption may redeem from the foreclosure, and such owner of redemption may redeem only during the redemption period specified in subsection (b) of Section 15-1603 and only if the right of redemption has not been validly waived.

(b) Redemption Period.

(1) In the foreclosure of a mortgage of real estate which is residential real estate at the time the foreclosure is commenced, the redemption period shall end on the later of (i) the date 7 months from the date the mortgagor or, if more than one, all the mortgagors (A) have been served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.

(2) In all other foreclosures, the redemption period shall end on the later of (i) the date 6 months from the date the mortgagor or, if more than one, all the mortgagors (A) have been served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.

(3) Notwithstanding paragraphs (1) and (2), the redemption period shall end at the later of the expiration of any reinstatement period provided for in Section 15-1602 or the date 60 days after the date the judgment of foreclosure is entered, if the court finds that (i) the value of the mortgaged real estate as of the date of the judgment is less than 90% of the amount specified pursuant to subsection (d) of Section 15-1603 and (ii) the mortgagee waives any and all rights to a personal judgment for a deficiency against the mortgagor and against all other persons liable for the indebtedness or other obligations secured by the mortgage.

(4) Notwithstanding paragraphs (1) and (2), the redemption period shall end on the date 30 days after the date the judgment of foreclosure is entered if, upon motion and notice in accordance with court rules applicable to motions generally, the court finds that the mortgaged real estate has been abandoned. In cases where the redemption period is shortened on account of abandonment, the reinstatement period shall not extend beyond the redemption period as shortened.

(A) The court may find that the mortgaged real estate is abandoned if the mortgagee proves, by a preponderance of the evidence, with the mortgagee's proof being offered by personal testimony or affidavit, that the mortgaged real estate has been abandoned. To determine that the real estate has been abandoned, the court must find the following:

(i) the mortgaged real estate is not actually occupied; and

(ii) at least one of the following applies:

(aa) the mortgagee has made at least 3 attempts to contact the mortgagor, which shall include any attempts to contact the mortgagor as required by law, and at least 2 of the following supporting facts are true:

(I) construction was initiated on the real estate and was discontinued prior to completion, leaving the building unsuitable for occupancy, and no construction has taken place for at least 6 months;

(II) the real estate has had at least one uncorrected municipal code violation over the past year, or has been unfit for occupancy and ordered to remain vacant and unoccupied by the municipal authorities;

(III) gas, electric, or water service to the entire premises has been terminated;

(IV) windows or entrances to the premises are boarded up or closed off, or multiple window panes are broken and unrepaired;

(V) doors to the premises are smashed through, broken off, unhinged, or continuously unlocked;

(VI) the police or sheriff's office received at least one report of a trespasser on the premises, vandalism, or other illegal acts being committed on the premises in the past 6 months;

(VII) the mortgagee or other interested or authorized party has secured or winterized the premises due to the real estate being declared vacant in a proceeding initiated under an ordinance enacted pursuant to Section 11-17-20 of the Illinois Municipal Code;

(VIII) the mortgagee or other interested or authorized party has secured or winterized the premises upon the request of the local police, fire, or code enforcement authorities due to the local authorities declaring the premises to be an imminent danger to the health, safety, and welfare of the public;

(IX) the mortgagee or other interested or authorized party has, after conducting a reasonable inquiry and investigation, secured or winterized the premises due to the premises being vacant and open, unprotected, or in reasonable danger of damage due to exposure to the elements, vandalism, or freezing;

(bb) 3 or more attempts to contact the mortgagor have been made and there exist written statements of the mortgagor or the mortgagor's personal representative or assign, including documents of conveyance, which indicate a clear intent to abandon the mortgaged real estate; or

(cc) 3 or more attempts to contact the mortgagor have been made and the mortgaged real estate is a vacant lot.

(B) Notwithstanding the provisions of this subsection, if an appearance by the mortgagor or other occupant is made at or before the hearing on a motion brought pursuant to this subsection, the mortgaged real estate shall not be deemed abandoned and the court shall deny the motion to shorten the redemption period.

(c) Extension of Redemption Period.

(1) Once expired, the right of redemption provided for in Sections 15-1603 or 15-1604 shall not be revived. The period within which the right of redemption provided for in Sections 15-1603 or 15-1604 may be exercised runs independently of any action by any person to enforce the judgment of foreclosure or effect a sale pursuant thereto. Neither the initiation of any legal proceeding nor the order of any court staying the enforcement of a judgment of foreclosure or the sale pursuant to a judgment or the confirmation of the sale, shall have the effect of tolling the running of the redemption period.

(2) If a court has the authority to stay, and does stay, the running of the redemption period, or if the redemption period is extended by any statute of the United States, the redemption period shall be extended until the expiration of the same number of days after the expiration of the stay order as the number of days remaining in the redemption period at the time the stay order became effective, or, if later, until the expiration of 30 days after the stay order terminates. If the stay order terminates more than 30 days prior to the expiration of the redemption period, the redemption period shall not be extended.

(d) Amount Required to Redeem. The amount required to redeem shall be the sum of:

(1) The amount specified in the judgment of foreclosure, which shall consist of (i) all principal and accrued interest secured by the mortgage and due as of the date of the judgment, (ii) all costs allowed by law, (iii) costs and expenses approved by the court, (iv) to the extent provided for in the mortgage and approved by the court, additional costs, expenses and reasonable attorneys' fees incurred by the mortgagee, (v) all amounts paid pursuant to Section 15-1505 and (vi) per diem interest from the date of judgment to the date of redemption calculated at the mortgage rate of interest applicable as if no default had occurred; and

(2) The amount of other expenses authorized by the court which the mortgagee reasonably incurs between the date of judgment and the date of redemption, which shall be the amount certified by the mortgagee in accordance with subsection (e) of Section 15-1603.

(e) Notice of Intent to Redeem. An owner of redemption who intends to redeem shall give written notice of such intent to redeem to the mortgagee's attorney of record specifying the date designated for redemption and the current address of the owner of redemption for purposes of receiving notice. Such owner of redemption shall file with the clerk of the court a certification of the giving of such notice. The notice of intent to redeem must be received by the mortgagee's attorney at least 15 days (other than Saturday, Sunday or court holiday) prior to the date designated for redemption. The mortgagee shall thereupon file with the clerk of the court and shall give written notice to the owner of redemption at least three days (other than Saturday, Sunday or court holiday) before the date designated for redemption a certification, accompanied by copies of paid receipts or appropriate affidavits, of any expenses authorized in paragraph (2) of subsection (d) of Section 15-1603. If the mortgagee fails to serve such certification within the time specified herein, then the owner of redemption intending to redeem may redeem on the date designated for redemption in the notice of intent to redeem, and the mortgagee shall not be entitled to payment of any expenses authorized in paragraph (2) of subsection (d) of Section 15-1603.

(f) Procedure for Redemption.

(1) An owner of redemption may redeem the real estate from the foreclosure by paying the amount specified in subsection (d) of Section 15-1603 to the mortgagee or the mortgagee's attorney of record on or before the date designated for redemption pursuant to subsection (e) of Section 15-1603.

(2) If the mortgagee refuses to accept payment or if the owner of redemption redeeming from the foreclosure objects to the reasonableness of the additional expenses authorized in paragraph (2) of subsection (d) of Section 15-1603 and certified in accordance with subsection (e) of Section 15-1603, the owner of redemption shall pay the certified amount to the clerk of the court on or before the date designated for redemption, together with a written statement specifying the expenses to which objection is made. In such case the clerk shall pay to the mortgagee the amount tendered minus the amount to which the objection pertains.

(3) Upon payment to the clerk, whether or not the owner of redemption files an objection at the time of payment, the clerk shall give a receipt of payment to the person redeeming from the foreclosure, and shall file a copy of that receipt in the foreclosure record. Upon receipt of the amounts specified to be paid to the mortgagee pursuant to this Section, the mortgagee shall promptly furnish the mortgagor with a release of the mortgage or satisfaction of the judgment, as appropriate, and the evidence of all indebtedness secured by the mortgage shall be cancelled.

(g) Procedure Upon Objection. If an objection is filed by an owner of redemption in accordance with paragraph (2) of subsection (f) of Section 15-1603, the clerk shall hold the amount to which the objection pertains until the court orders distribution of those funds. The court shall hold a hearing promptly to determine the distribution of any funds held by the clerk pursuant to such objection. Each party shall pay its own costs and expenses in connection with any objection, including attorneys' fees, subject to Section 2-611 of the Code of Civil Procedure.

(h) Failure to Redeem. Unless the real estate being foreclosed is redeemed from the foreclosure, it shall be sold as provided in this Article.

(Source: P.A. 86-974.).

Section 99. Effective date. This Act takes effect upon becoming law.".