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


Rep. Karen A. Yarbrough

Filed: 3/2/2012





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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
5adding Section 11-20-17 as follows:
6    (65 ILCS 5/11-20-17 new)
7    Sec. 11-20-17. Mortgagee maintenance requirements for
8vacant residential property.
9    (a) For the purposes of minimizing the hazards to persons
10and property resulting from vacant residential property, the
11corporate authorities of each municipality may adopt an
12ordinance that is substantially in compliance with this Section
13requiring a mortgagee to maintain, register, and secure vacant
14residential property. The corporate authority of a
15municipality that enacts an ordinance pursuant to this Section
16shall transmit a copy of that ordinance to the Illinois Housing



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1Development Authority within 30 days after the ordinance's
2enactment. The Illinois Housing Development Authority shall,
3within 30 days after the receipt of an ordinance, post on its
4website a copy of the ordinance or a link to a site where the
5municipality has the ordinance posted on the municipality's
7    (b) For the purpose of this Section, "owner" means the
8legal or beneficial owner of an improved or unimproved parcel
9of real estate.
10    (c) For the purpose of this Section, "mortgagee" means: (i)
11the holder of an indebtedness, the obligee of a non-monetary
12obligation secured by a mortgage, any assignee of the mortgage,
13or any person designated or authorized to act on behalf of a
14holder; (ii) any person or entity that previously initiated a
15foreclosure of the vacant residential property or obtained a
16foreclosure judgment against the vacant residential property
17if the deed to the vacant residential property has not been
18transferred to the purchaser at the judicial sale; (iii) any
19person claiming through a mortgagee as successor; and (iv) any
20person identified as such in a recorded document which has not
21been released, assigned, or superseded of record.
22    (d) For the purpose of this Section, "mortgage" means any
23consensual lien created by a written instrument which grants or
24retains an interest in real estate to secure a debt or other
25obligation. The term includes, without limitation: (i)
26mortgages securing reverse mortgage loans; (ii) mortgages



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1securing revolving credit loans; (iii) every deed conveying
2real estate, although an absolute conveyance in its terms,
3which shall have been intended only as a security in the nature
4of a mortgage; and (iv) equitable mortgages. The term does not
5include: (i) a mechanics or materialman lien; (ii) a judgment;
6(iii) a receiver's certificate, or (iv) a tax lien.
7    (e) For the purpose of this Section, "vacant residential
8property" means any real estate, other than a single tract of
9agricultural real estate consisting of more than 40 acres,
10improved with a complete structure containing one or more
11dwelling units or an incomplete structure if the real estate is
12zoned for residential development, where the structure is empty
13or otherwise uninhabited and the structure or lot is in need of
14maintenance, repair, or securing, and with respect to which one
15or more of the following conditions exist:
16        (1) all lawful business or construction operations
17    have ceased for 6 months;
18        (2) it has been declared unfit for occupancy and
19    ordered to remain vacant and unoccupied by municipal
20    authorities or a court of competent jurisdiction;
21        (3) no construction or legal repairs have commenced for
22    6 months;
23        (4) the doors or windows are smashed through, broken,
24    unhinged, removed, or continuously unlocked;
25        (5) law enforcement officials have received at least
26    one report of trespassers or vandalism or other illegal



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1    acts being committed at the property in the last 6 months;
2        (6) gas, electrical, or water service to the entire
3    premises has been terminated.
4    A property shall not be considered vacant, for purposes of
5this Section, if on the property: (i) there is an unoccupied
6building that is undergoing construction, renovation, or
7rehabilitation that is proceeding diligently to completion,
8and the building is in compliance with all applicable
9ordinances, codes, regulations, and laws; (ii) there is a
10building that is occupied on a seasonal basis, but is otherwise
11secure; (iii) there is a secure building on which there are
12bona fide rental or sale signs; (iv) there is a building that
13is secure, but is the subject of a probate action, action to
14quiet title, or other ownership dispute; or (v) there is
15otherwise a building that is secure and in substantial
16compliance with all applicable ordinances, codes, regulations,
17and laws.
18    (f) For the purpose of this Section, "default" means: (i)
19with respect to a building containing 4 or fewer dwelling
20units, when a mortgagor is 60 days past due on that mortgagor's
21obligation to pay under a mortgage or a note secured by that
22mortgage; and (ii) with respect to all other buildings, when a
23mortgagor is 90 days past due on that mortgagor's obligation to
24pay under a mortgage or a note secured by that mortgage.
25    (g) Liability.
26        (1) A mortgagee's acts or omissions required by any



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1    ordinance enacted pursuant to this Section shall not
2    subject the mortgagee to civil or criminal liability unless
3    the act or omission constitutes gross negligence or
4    willful, wanton, or intentional misconduct. This provision
5    shall not waive any requirement to obtain permits or
6    licenses for performing certain work required by an
7    ordinance enacted under this Section, or the penalties
8    provided for failure to do so.
9        (2) If a vacant residential property is registered
10    pursuant to an ordinance enacted under this Section, only
11    the registered mortgagee shall be liable under the
12    ordinance during the registration period. Nothing in this
13    Section shall bar the concurrent enforcement of any law or
14    ordinance against the owner of a property.
15    (h) Registration.
16        (1) A municipality may require that the mortgagee of
17    any residential property that has become vacant and is not
18    registered as vacant by an owner, if applicable, within the
19    later of 30 days after the residential property becomes
20    vacant and unregistered or 60 days after a default, file a
21    registration statement with the municipality. A
22    municipality may charge a reasonable fee for any
23    registration, which fee shall not exceed $500. The
24    registration shall remain valid for 6 months from the date
25    of registration. The mortgagee shall be required to renew
26    the registration every 6 months as long as the building



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1    remains vacant. The mortgagee shall notify, in writing, the
2    municipality within 20 days of any change in the
3    registration information. The registration statement shall
4    be deemed prima facie proof of the statements therein
5    contained in any administrative enforcement proceeding or
6    court proceeding instituted under an ordinance enacted
7    pursuant to this Section by the municipality against the
8    mortgagee with respect to the registered property.
9        (2) In addition to other information required by the
10    municipality, the registration statement shall include the
11    name, street address, and telephone number of a natural
12    person, 18 years of age or older, or business entity
13    registered with the Secretary of State designated by the
14    mortgagee as an authorized agent for receiving notices of
15    code violations and for receiving process in any court
16    proceeding or administrative enforcement proceeding on
17    behalf of the mortgagee in connection with enforcement of
18    an ordinance enacted pursuant to this Section. A mortgagee
19    meeting these criteria may designate itself as agent. By
20    designating an authorized agent under an ordinance enacted
21    pursuant to this Section, a mortgagee consents to receive
22    any and all notices of violations of an ordinance enacted
23    pursuant to this Section concerning the registered
24    building and all process in any court proceeding or
25    administrative enforcement proceeding brought to enforce
26    an ordinance enacted pursuant to this Section with respect



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1    to the registered building by service of the notice or
2    process on the authorized agent. Any mortgagee that has
3    designated an authorized agent under the provisions of an
4    ordinance enacted pursuant to this Section shall be deemed
5    to consent to the continuation of the agent's designation
6    for the purposes of an ordinance enacted pursuant to this
7    Section until the mortgagee notifies the municipality of a
8    change of authorized agent or until the mortgagee files a
9    new registration statement. The municipality shall notify
10    in writing the designated agent of all violations and
11    enforcement proceedings brought under an ordinance enacted
12    pursuant to this Section.
13    (i) A municipality may require that the mortgagee of any
14residential property that has become vacant and which is not
15otherwise registered as vacant by an owner, if applicable,
16within the later of 30 days after the residential property
17becomes vacant and unregistered, if applicable, or 60 days
18after a default:
19        (1) enclose and secure the vacant residential property
20    so that all doors and windows are closed and secured,
21    using: secure doors; windows without broken or cracked
22    panes; commercial-quality metal security panels, filled
23    with like-kind material as the surrounding wall; or plywood
24    installed and secured in accordance with rules and
25    regulations issued by the municipality. At least one
26    building entrance shall be accessible from the exterior and



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1    secured with a door that is locked to allow access only to
2    authorized persons. If 2 or more exit doors exist, a
3    minimum of 2 exit doors shall be available to exit from the
4    interior of the building, with at least one exit door
5    available per 150 linear feet of horizontal travel at
6    ground-floor level;
7        (2) maintain all grass and weeds on the vacant
8    residential property below 10 inches in height and cut and
9    remove all dead or broken trees, tree limbs, or shrubbery;
10        (3) clear or remove snow from the walkway leading to
11    the main entry door, and any public sidewalk on or
12    adjoining the vacant residential property;
13        (4) abate the accumulation of debris, trash, and litter
14    that does not constitute personal property on any portion
15    of the exterior of the vacant residential property;
16        (5) reasonably maintain fences and gates;
17        (6) reasonably maintain the structural integrity of
18    stairs and steps that lead to the main entrance of the
19    building;
20        (7) winterize the vacant residential property, which
21    shall mean cleaning all toilets and completely draining all
22    plumbing and heating systems;
23        (8) maintain and secure the exterior of the building;
24        (9) post a sign affixed to the building indicating the
25    information required by the municipality. A sign shall be
26    legible and no smaller than 8.5 inches by 11 inches and



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1    placed in such a location so as to be visible from the
2    nearest public street or sidewalk, whichever is nearer; and
3    if there is any alley adjacent to the property, a sign
4    shall also be posted so as to be visible from the alley;
5        (10) maintain the building in a secure and closed
6    condition and maintain any required sign until the vacant
7    residential property is reoccupied or demolished with all
8    permits required by the municipality. If during the
9    registration period and following the initial boarding and
10    securing of the building in compliance with an ordinance
11    enacted pursuant to this Section the municipality notifies
12    the mortgagee in writing that the vacant residential
13    property was found unsecured or open or it has been
14    judicially or administratively found to be unsecured or
15    open on 2 separate occasions at least 30 days apart, the
16    municipality may require that the vacant residential
17    property shall thereafter be secured only with
18    commercial-quality metal security panels or a method
19    deemed equivalent by the municipality;
20        (11) inspect the vacant residential property on a
21    monthly basis. A mortgagee may elect to inspect any vacant
22    residential property on a more frequent basis; and
23        (12) exterminate vermin and pests on the exterior of
24    the property.
25    (j) A municipality may require that, beginning 45 days
26after a default, a mortgagee determine, on a monthly basis, if



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1the building on the real estate subject to its mortgage is
2vacant. A municipality may provide that this determination may
3be made by communication with the mortgagor, a visual
4inspection of the real estate, or other means reasonably
5calculated to determine if the building is vacant.
6    (k) A municipality adopting an ordinance pursuant to this
7Section may impose a fine of not more than $1,000 and not less
8than $500 for each offense. Every day that a violation
9continues shall constitute a separate and distinct offense. The
10following shall be affirmative defenses under any ordinance
11adopted pursuant to this Section:
12        (1) that at the time of the violation the building was
13    occupied by any number of persons lawfully or unlawfully;
14        (2) that the owner or another mortgagee has registered
15    the building with the municipality and that registration is
16    current at the time of the violation;
17        (3) that the mortgagee is barred from taking any action
18    required by an ordinance enacted under this Section by an
19    automatic stay pursuant to a bankruptcy proceeding,
20    provided that the mortgagee tenders evidence of that
21    proceeding including the bankruptcy case number;
22        (4) that the mortgagee has cured all violations within
23    30 days after receiving written notice of such violations.
24    Notice sent by U.S. mail shall be deemed received 7 days
25    after mailing. An affidavit shall be conclusive proof of
26    mailing;



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1        (5) that at the time of the violation, the mortgage was
2    not in default;
3        (6) that at the time of the violation, the mortgagee
4    was not the holder of the senior lien on the real estate;
5        (7) that a receiver is appointed for the property by a
6    court of competent jurisdiction;
7        (8) that the mortgagee has diligently applied for a
8    permit required to comply with any obligation under an
9    ordinance enacted pursuant to this Section, and a permit
10    has not yet been issued;
11        (9) that in a foreclosure of the property, the owner or
12    mortgagor took any of the following actions:
13            (i) filed any pleading which asserts a claim
14        against the mortgagee or a defense;
15            (ii) filed any motion which asserts a defense or
16        claim against the mortgagee;
17            (iii) filed any discovery request for response by
18        the mortgagee; or
19            (iv) filed a request for mediation.
20    (l) Termination of ordinance requirements.
21        (1) Upon the occurrence of any of the following, the
22    requirements of any ordinance enacted pursuant to this
23    Section shall terminate with respect to a mortgagee:
24            (i) a recorded assignment of the mortgagee's
25        mortgage; or
26            (ii) a recorded satisfaction or release of the



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1        mortgagee's mortgage.
2        (2) Upon the occurrence of any of the following, the
3    requirements of any ordinance enacted pursuant to this
4    Section shall terminate with respect to a vacant
5    residential property:
6            (i) a recorded conveyance of title to the
7        underlying real estate, pursuant to foreclosure
8        proceedings or otherwise;
9            (ii) the building ceases to be vacant; or
10            (iii) the building is demolished with all permits
11        required by the municipality.
12    (m) No municipality may impose requirements for the
13maintenance, registration, or securing of vacant residential
14property upon any financial institution that has no interest in
15the property other than that of a mortgagee, except pursuant to
16an ordinance that: (1) substantially complies with this
17Section; and (2) has been posted on the website of the Illinois
18Housing Development Authority pursuant to subsection (a) of
19this Section. For purposes of this subsection (m), "financial
20institution" means a bank, savings bank, savings and loan
21association, or credit union.
22    Section 10. The Code of Civil Procedure is amended by
23changing Sections 15-1503, 15-1506, 15-1508, and 15-1603 as



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1    (735 ILCS 5/15-1503)  (from Ch. 110, par. 15-1503)
2    Sec. 15-1503. Notice of Foreclosure.
3    (a) A notice of foreclosure, whether the foreclosure is
4initiated by complaint or counterclaim, made in accordance with
5this Section and recorded in the county in which the mortgaged
6real estate is located shall be constructive notice of the
7pendency of the foreclosure to every person claiming an
8interest in or lien on the mortgaged real estate, whose
9interest or lien has not been recorded prior to the recording
10of such notice of foreclosure. Such notice of foreclosure must
11be executed by any party or any party's attorney and shall
12include (i) the names of all plaintiffs and the case number,
13(ii) the court in which the action was brought, (iii) the names
14of title holders of record, (iv) a legal description of the
15real estate sufficient to identify it with reasonable
16certainty, (v) a common address or description of the location
17of the real estate and (vi) identification of the mortgage
18sought to be foreclosed. An incorrect common address or
19description of the location, or an immaterial error in the
20identification of a plaintiff or title holder of record, shall
21not invalidate the lis pendens effect of the notice under this
22Section. A notice which complies with this Section shall be
23deemed to comply with Section 2-1901 of the Code of Civil
24Procedure and shall have the same effect as a notice filed
25pursuant to that Section; however, a notice which complies with
26Section 2-1901 shall not be constructive notice unless it also



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1complies with the requirements of this Section.
2    (b) With respect to residential real estate, a copy of the
3notice of foreclosure described in subsection (a) of Section
415-1503 shall be sent by first class mail, postage prepaid, to
5the municipality within the boundary of which the mortgaged
6real estate is located, or to the county within the boundary of
7which the mortgaged real estate is located if the mortgaged
8real estate is located in an unincorporated territory. A
9municipality or county must clearly publish on its website a
10single address to which such notice shall be sent. If a
11municipality or county does not maintain a website, then the
12municipality or county must publicly post in its main office a
13single address to which such notice shall be sent. In the event
14that a municipality or county has not complied with the
15publication requirement in this subsection (b), then the copy
16of the such notice to the municipality or county shall be be
17sent by first class mail, postage prepaid, to the chairperson
18of the county board or county clerk in the case of a county, to
19the mayor or city clerk in the case of a city, to the president
20of the board of trustees or village clerk in the case of a
21village, or to the president or town clerk in the case of a
22town provided pursuant to Section 2-211 of the Code of Civil
23Procedure. Additionally, if the real estate is located in a
24city with a population of more than 2,000,000, regardless of
25whether that city has complied with the publication requirement
26in this subsection (b), the party must, within 10 days after



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1filing the complaint or counterclaim: (i) send by first class
2mail, postage prepaid, a copy of the notice of foreclosure to
3the alderman for the ward in which the real estate is located
4and (ii) file an affidavit with the court attesting to the fact
5that the notice was sent to the alderman for the ward in which
6the real estate is located. The failure to send a copy of the
7notice to the alderman or to file an affidavit as required
8results in the dismissal without prejudice of the complaint or
9counterclaim on a motion of a party or the court. If, after the
10complaint or counterclaim has been dismissed without
11prejudice, the party refiles the complaint or counterclaim,
12then the party must again comply with the requirements that the
13party send by first class mail, postage prepaid, the notice to
14the alderman for the ward in which the real estate is located
15and file an affidavit attesting to the fact that the notice was
17(Source: P.A. 96-856, eff. 3-1-10.)
18    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
19    Sec. 15-1506. Judgment. (a) Evidence. In the trial of a
20foreclosure, the evidence to support the allegations of the
21complaint shall be taken in open court, except:
22    (1) where an allegation of fact in the complaint is not
23denied by a party's verified answer or verified counterclaim,
24or where a party pursuant to subsection (b) of Section 2-610 of
25the Code of Civil Procedure states, or is deemed to have



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1stated, in its pleading that it has no knowledge of such
2allegation sufficient to form a belief and attaches the
3required affidavit, a sworn verification of the complaint or a
4separate affidavit setting forth such fact is sufficient
5evidence thereof against such party and no further evidence of
6such fact shall be required; and
7    (2) where all the allegations of fact in the complaint have
8been proved by verification of the complaint or affidavit, the
9court upon motion supported by an affidavit stating the amount
10which is due the mortgagee, shall enter a judgment of
11foreclosure as requested in the complaint.
12    (b) Instruments. In all cases the evidence of the
13indebtedness and the mortgage foreclosed shall be exhibited to
14the court and appropriately marked, and copies thereof shall be
15filed with the court.
16    (c) Summary and Default Judgments.
17        (1) Nothing in this Section 15-1506 shall prevent a
18    party from obtaining a summary or default judgment
19    authorized by Article II of the Code of Civil Procedure.
20        (2) Judgment on abandoned real estate. A mortgagee may
21    elect to file a motion seeking a finding of abandonment
22    pursuant to paragraph (4) of subsection (b) of Section
23    15-1603 and concurrently file a motion for summary or
24    default judgment, and both motions shall be given priority
25    and must be set before the court by the circuit clerk
26    within 15 days after filing, so long as one of the



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1    following have occurred:
2            (i) 30 days have transpired since service of the
3        summons on the mortgagor, or, if there is more than one
4        mortgagor, 30 days have transpired since service on all
5        mortgagors, and the mortgagor has not filed any answer
6        or appearance;
7            (ii) 30 days have transpired since the date of
8        first publication, if service of process is by
9        publication, and the mortgagor has not filed any answer
10        or appearance; or
11            (iii) 30 days have transpired since all mortgagors
12        have otherwise submitted to the jurisdiction of the
13        court, and the mortgagor has not filed any answer or
14        appearance.
15        The Court shall proceed to determine if the real estate
16    is abandoned pursuant to the requirements of paragraph (4)
17    of subsection (b) of Section 15-1603 and shall proceed on
18    any motion for default or summary judgment pursuant to the
19    requirements in Article II of the Code of Civil Procedure.
20    If the court finds that the real estate is abandoned,
21    pursuant to Section 15-1603, and also grants the
22    mortgagee's motion for default or summary judgment then the
23    court, if requested, shall immediately enter a judgment of
24    foreclosure as requested in the complaint which shall
25    include the matters identified in Section 15-1506.
26    (d) Notice of Entry of Default. When any judgment in a



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1foreclosure is entered by default, notice of such judgment
2shall be given in accordance with Section 2-1302 of the Code of
3Civil Procedure.
4    (e) Matters Required in Judgment. A judgment of foreclosure
5shall include the last date for redemption and all rulings of
6the court entered with respect to each request for relief set
7forth in the complaint. The omission of the date for redemption
8shall not extend the time for redemption or impair the validity
9of the judgment.
10    (f) Special Matters in Judgment. Without limiting the
11general authority and powers of the court, special matters may
12be included in the judgment of foreclosure if sought by a party
13in the complaint or by separate motion. Such matters may
14include, without limitation:
15    (1) a manner of sale other than public auction;
16    (2) a sale by sealed bid;
17    (3) an official or other person who shall be the officer to
18conduct the sale other than the one customarily designated by
19the court;
20    (4) provisions for non-exclusive broker listings or
21designating a duly licensed real estate broker nominated by one
22of the parties to exclusively list the real estate for sale;
23    (5) the fees or commissions to be paid out of the sale
24proceeds to the listing or other duly licensed broker, if any,
25who shall have procured the accepted bid;
26    (6) the fees to be paid out of the sale proceeds to an



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1auctioneer, if any, who shall have been authorized to conduct a
2public auction sale;
3    (7) whether and in what manner and with what content signs
4shall be posted on the real estate;
5    (8) a particular time and place at which such bids shall be
7    (9) a particular newspaper or newspapers in which notice of
8sale shall be published;
9    (10) the format for the advertising of such sale, including
10the size, content and format of such advertising, and
11additional advertising of such sale;
12    (11) matters or exceptions to which title in the real
13estate may be subject at the sale;
14    (12) a requirement that title insurance in a specified form
15be provided to a purchaser at the sale, and who shall pay for
16such insurance;
17    (13) whether and to what extent bids with mortgage or other
18contingencies will be allowed;
19    (14) such other matters as approved by the court to ensure
20sale of the real estate for the most commercially favorable
21price for the type of real estate involved.
22    (g) Agreement of the Parties. If all of the parties agree
23in writing on the minimum price and that the real estate may be
24sold to the first person who offers in writing to purchase the
25real estate for such price, and on such other commercially
26reasonable terms and conditions as the parties may agree, then



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



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1    Sec. 15-1508. Report of Sale and Confirmation of Sale.
2    (a) Report. The person conducting the sale shall promptly
3make a report to the court, which report shall include a copy
4of all receipts and, if any, certificate of sale.
5    (b) Hearing. Upon motion and notice in accordance with
6court rules applicable to motions generally, which motion shall
7not be made prior to sale, the court shall conduct a hearing to
8confirm the sale. Unless the court finds that (i) a notice
9required in accordance with subsection (c) of Section 15-1507
10or a notice to an alderman required in accordance with
11subsection (b) of Section 15-1503 was not given, (ii) the terms
12of sale were unconscionable, (iii) the sale was conducted
13fraudulently, or (iv) justice was otherwise not done, the court
14shall then enter an order confirming the sale. The confirmation
15order shall include a name, address, and telephone number of
16the holder of the certificate of sale or deed issued pursuant
17to that certificate or, if no certificate or deed was issued,
18the purchaser, whom a municipality or county may contact with
19concerns about the real estate. The confirmation order may
21        (1) approve the mortgagee's fees and costs arising
22    between the entry of the judgment of foreclosure and the
23    confirmation hearing, those costs and fees to be allowable
24    to the same extent as provided in the note and mortgage and
25    in Section 15-1504;
26        (2) provide for a personal judgment against any party



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1    for a deficiency; and
2        (3) determine the priority of the judgments of parties
3    who deferred proving the priority pursuant to subsection
4    (h) of Section 15-1506, but the court shall not defer
5    confirming the sale pending the determination of such
6    priority; and .
7        (4) provide that if the court has entered a finding of
8    abandonment pursuant to paragraph (4) of subsection (b) of
9    Section 15-1603, then any personal property remaining in or
10    upon the abandoned mortgaged real estate shall be deemed to
11    have been abandoned by the owner of such personal property
12    and may be disposed of or donated by the holder of the
13    certificate of sale (or, if none, by the purchaser at the
14    sale). In the event of the donation of any such personal
15    property, the holder of the certificate of sale (or, if
16    none, the purchaser at the sale) may transfer the donated
17    property with a bill of sale. No mortgagee or its successor
18    or assign, holder of a certificate of sale, or purchaser at
19    the sale shall be liable for any such disposal or donation
20    of personal property.
21    (b-5) Notice with respect to residential real estate. With
22respect to residential real estate, the notice required under
23subsection (b) of this Section shall be sent to the mortgagor
24even if the mortgagor has previously been held in default. In
25the event the mortgagor has filed an appearance, the notice
26shall be sent to the address indicated on the appearance. In



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1all other cases, the notice shall be sent to the mortgagor at
2the common address of the foreclosed property. The notice shall
3be sent by first class mail. Unless the right to possession has
4been previously terminated by the court, the notice shall
5include the following language in 12-point boldface
6capitalized type:
11    (b-6) Notice with respect to real estate that has been
12declared abandoned. With respect to real estate that has been
13declared abandoned, the notice required in accordance with
14subsection (b) of this Section shall be sent to the mortgagor
15even if the mortgagor has previously been held in default. The
16notice shall be sent to the address indicated on the affidavit
17of return of service. In all other cases, the notice shall be
18sent to the mortgagor at the common address of the foreclosed
19real estate. The notice shall be sent by first class mail. The
20notice shall include the following language in 12-point
21boldface capitalized type:



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2    (b-10) Notice of confirmation order sent to municipality or
3county. With respect to residential real estate, a A copy of
4the confirmation order required under subsection (b) shall be
5sent by first class mail, postage prepaid, to the municipality
6in which the foreclosed property is located, or to the county
7within the boundary of which the foreclosed property is located
8if the foreclosed property is located in an unincorporated
9territory. A municipality or county must clearly publish on its
10website a single address to which such order notice shall be
11sent. If a municipality or county does not maintain a website,
12then the municipality or county must publicly post in its main
13office a single address to which such order notice shall be
14sent. In the event that a municipality or county has not
15complied with the publication requirement in this subsection
16(b-10), then the copy of the order for such notice to the
17municipality or county shall be sent by first class mail to the
18chairperson of the county board or county clerk in the case of
19a county, to the mayor or city clerk in the case of a city, to
20the president of the board of trustees or village clerk in the
21case of a village, or the president or town clerk in the case
22of a town. Additionally, if the real estate is located in a
23city with a population of more than 2,000,000, regardless of
24whether that city has complied with the publication
25requirements of this subsection (b-10), the party filing the
26complaint or counterclaim must, within 10 days after the entry



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1of the confirmation order: (i) send by first class mail,
2postage prepaid, a copy of the confirmation order to the
3alderman for the ward in which the real estate is located and
4(ii) file an affidavit attesting to the fact that a copy of the
5confirmation order was sent to the alderman for the ward in
6which the real estate is located provided pursuant to Section
72-211 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
19(Public Law 110-343, Div. A.), as amended by the American
20Recovery and Reinvestment Act of 2009 (Public Law 111-5), and
21(ii) the mortgaged real estate was sold in material violation
22of the program's requirements for proceeding to a judicial
23sale. The provisions of this subsection (d-5), except for this
24sentence, shall become inoperative on January 1, 2013 for all
25actions filed under this Article after December 31, 2012, in
26which the mortgagor did not apply for assistance under the



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1Making Home Affordable Program on or before December 31, 2012.
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 real estate is abandoned pursuant to
3paragraph (4) of subsection (b) of Section 2-1603 and the
4parties whose interests have been terminated have not appeared
5at the hearing to confirm the sale, the purchaser shall be
6awarded possession of 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    (h) With respect to mortgaged real estate containing 5 or
2more dwelling units, the order confirming the sale shall also
3provide that (i) the mortgagor shall transfer to the purchaser
4the security deposits, if any, that the mortgagor received to
5secure payment of rent or to compensate for damage to the
6mortgaged real estate from any current occupant of a dwelling
7unit of the mortgaged real estate, as well as any statutory
8interest that has not been paid to the occupant, and (ii) the
9mortgagor shall provide an accounting of the security deposits
10that are transferred, including the name and address of each
11occupant for whom the mortgagor holds the deposit and the
12amount of the deposit and any statutory interest.
13(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
1496-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
16    (735 ILCS 5/15-1603)  (from Ch. 110, par. 15-1603)
17    Sec. 15-1603. Redemption.
18    (a) Owner of Redemption. Except as provided in subsection
19(b) of Section 15-1402, only an owner of redemption may redeem
20from the foreclosure, and such owner of redemption may redeem
21only during the redemption period specified in subsection (b)
22of Section 15-1603 and only if the right of redemption has not
23been validly waived.
24    (b) Redemption Period.
25        (1) In the foreclosure of a mortgage of real estate



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1    which is residential real estate at the time the
2    foreclosure is commenced, the redemption period shall end
3    on the later of (i) the date 7 months from the date the
4    mortgagor or, if more than one, all the mortgagors (A) have
5    been served with summons or by publication or (B) have
6    otherwise submitted to the jurisdiction of the court, or
7    (ii) the date 3 months from the date of entry of a judgment
8    of foreclosure.
9        (2) In all other foreclosures, the redemption period
10    shall end on the later of (i) the date 6 months from the
11    date the mortgagor or, if more than one, all the mortgagors
12    (A) have been served with summons or by publication or (B)
13    have otherwise submitted to the jurisdiction of the court,
14    or (ii) the date 3 months from the date of entry of a
15    judgment of foreclosure.
16        (3) Notwithstanding paragraphs (1) and (2), the
17    redemption period shall end at the later of the expiration
18    of any reinstatement period provided for in Section 15-1602
19    or the date 60 days after the date the judgment of
20    foreclosure is entered, if the court finds that (i) the
21    value of the mortgaged real estate as of the date of the
22    judgment is less than 90% of the amount specified pursuant
23    to subsection (d) of Section 15-1603 and (ii) the mortgagee
24    waives any and all rights to a personal judgment for a
25    deficiency against the mortgagor and against all other
26    persons liable for the indebtedness or other obligations



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1    secured by the mortgage.
2        (4) Notwithstanding paragraphs (1) and (2), the
3    redemption period shall end on the date 30 days after the
4    date the judgment of foreclosure is entered if, upon motion
5    and notice in accordance with court rules applicable to
6    motions generally, the court finds that the mortgaged real
7    estate has been abandoned. In cases where the redemption
8    period is shortened on account of abandonment, the
9    reinstatement period shall not extend beyond the
10    redemption period as shortened.
11            (A) The court may find that the mortgaged real
12        estate is abandoned if the mortgagee proves, by a
13        preponderance of the evidence, with the mortgagee's
14        proof being offered by personal testimony or
15        affidavit, that the mortgaged real estate has been
16        abandoned. To determine that the real estate has been
17        abandoned, the court must find the following:
18                (i) the mortgaged real estate is not actually
19            occupied; and
20                (ii) at least one of the following applies:
21                    (aa) the mortgagee has made at least 3
22                attempts to contact the mortgagor, which shall
23                include any attempts to contact the mortgagor
24                as required by law, and at least 2 of the
25                following supporting facts are true:
26                            (I) construction was initiated on



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1                    the real estate and was discontinued prior
2                    to completion, leaving the building
3                    unsuitable for occupancy, and no
4                    construction has taken place for at least 6
5                    months;
6                            (II) the real estate has had at
7                    least one uncorrected municipal code
8                    violation over the past year, or has been
9                    unfit for occupancy and ordered to remain
10                    vacant and unoccupied by the municipal
11                    authorities;
12                            (III) gas, electric, or water
13                    service to the entire premises has been
14                    terminated;
15                            (IV) windows or entrances to the
16                    premises are boarded up or closed off, or
17                    multiple window panes are broken and
18                    unrepaired;
19                            (V) doors to the premises are
20                    smashed through, broken off, unhinged, or
21                    continuously unlocked;
22                            (VI) the police or sheriff's
23                    office received at least one report of a
24                    trespasser on the premises, vandalism, or
25                    other illegal acts being committed on the
26                    premises in the past 6 months;



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1                            (VII) the mortgagee or other
2                    interested or authorized party has secured
3                    or winterized the premises due to the real
4                    estate being declared vacant in a
5                    proceeding initiated under an ordinance
6                    enacted pursuant to Section 11-17-20 of
7                    the Illinois Municipal Code;
8                            (VIII) the mortgagee or other
9                    interested or authorized party has secured
10                    or winterized the premises upon the
11                    request of the local police, fire, or code
12                    enforcement authorities due to the local
13                    authorities declaring the premises to be
14                    an imminent danger to the health, safety,
15                    and welfare of the public;
16                            (IX) the mortgagee or other
17                    interested or authorized party has, after
18                    conducting a reasonable inquiry and
19                    investigation, secured or winterized the
20                    premises due to the premises being vacant
21                    and open, unprotected, or in reasonable
22                    danger of damage due to exposure to the
23                    elements, vandalism, or freezing;
24                    (bb) 3 or more attempts to contact the
25                mortgagor have been made and there exist
26                written statements of the mortgagor or the



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1                mortgagor's personal representative or assign,
2                including documents of conveyance, which
3                indicate a clear intent to abandon the
4                mortgaged real estate; or
5                    (cc) 3 or more attempts to contact the
6                mortgagor have been made and the mortgaged real
7                estate is a vacant lot.
8            (B) Notwithstanding the provisions of this
9        subsection, if an appearance by the mortgagor or other
10        occupant is made at or before the hearing on a motion
11        brought pursuant to this subsection, the mortgaged
12        real estate shall not be deemed abandoned and the court
13        shall deny the motion to shorten the redemption period.
14    (c) Extension of Redemption Period.
15        (1) Once expired, the right of redemption provided for
16    in Sections 15-1603 or 15-1604 shall not be revived. The
17    period within which the right of redemption provided for in
18    Sections 15-1603 or 15-1604 may be exercised runs
19    independently of any action by any person to enforce the
20    judgment of foreclosure or effect a sale pursuant thereto.
21    Neither the initiation of any legal proceeding nor the
22    order of any court staying the enforcement of a judgment of
23    foreclosure or the sale pursuant to a judgment or the
24    confirmation of the sale, shall have the effect of tolling
25    the running of the redemption period.
26        (2) If a court has the authority to stay, and does



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1    stay, the running of the redemption period, or if the
2    redemption period is extended by any statute of the United
3    States, the redemption period shall be extended until the
4    expiration of the same number of days after the expiration
5    of the stay order as the number of days remaining in the
6    redemption period at the time the stay order became
7    effective, or, if later, until the expiration of 30 days
8    after the stay order terminates. If the stay order
9    terminates more than 30 days prior to the expiration of the
10    redemption period, the redemption period shall not be
11    extended.
12    (d) Amount Required to Redeem. The amount required to
13redeem shall be the sum of:
14        (1) The amount specified in the judgment of
15    foreclosure, which shall consist of (i) all principal and
16    accrued interest secured by the mortgage and due as of the
17    date of the judgment, (ii) all costs allowed by law, (iii)
18    costs and expenses approved by the court, (iv) to the
19    extent provided for in the mortgage and approved by the
20    court, additional costs, expenses and reasonable
21    attorneys' fees incurred by the mortgagee, (v) all amounts
22    paid pursuant to Section 15-1505 and (vi) per diem interest
23    from the date of judgment to the date of redemption
24    calculated at the mortgage rate of interest applicable as
25    if no default had occurred; and
26        (2) The amount of other expenses authorized by the



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1    court which the mortgagee reasonably incurs between the
2    date of judgment and the date of redemption, which shall be
3    the amount certified by the mortgagee in accordance with
4    subsection (e) of Section 15-1603.
5    (e) Notice of Intent to Redeem. An owner of redemption who
6intends to redeem shall give written notice of such intent to
7redeem to the mortgagee's attorney of record specifying the
8date designated for redemption and the current address of the
9owner of redemption for purposes of receiving notice. Such
10owner of redemption shall file with the clerk of the court a
11certification of the giving of such notice. The notice of
12intent to redeem must be received by the mortgagee's attorney
13at least 15 days (other than Saturday, Sunday or court holiday)
14prior to the date designated for redemption. The mortgagee
15shall thereupon file with the clerk of the court and shall give
16written notice to the owner of redemption at least three days
17(other than Saturday, Sunday or court holiday) before the date
18designated for redemption a certification, accompanied by
19copies of paid receipts or appropriate affidavits, of any
20expenses authorized in paragraph (2) of subsection (d) of
21Section 15-1603. If the mortgagee fails to serve such
22certification within the time specified herein, then the owner
23of redemption intending to redeem may redeem on the date
24designated for redemption in the notice of intent to redeem,
25and the mortgagee shall not be entitled to payment of any
26expenses authorized in paragraph (2) of subsection (d) of



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1Section 15-1603.
2    (f) Procedure for Redemption.
3        (1) An owner of redemption may redeem the real estate
4    from the foreclosure by paying the amount specified in
5    subsection (d) of Section 15-1603 to the mortgagee or the
6    mortgagee's attorney of record on or before the date
7    designated for redemption pursuant to subsection (e) of
8    Section 15-1603.
9        (2) If the mortgagee refuses to accept payment or if
10    the owner of redemption redeeming from the foreclosure
11    objects to the reasonableness of the additional expenses
12    authorized in paragraph (2) of subsection (d) of Section
13    15-1603 and certified in accordance with subsection (e) of
14    Section 15-1603, the owner of redemption shall pay the
15    certified amount to the clerk of the court on or before the
16    date designated for redemption, together with a written
17    statement specifying the expenses to which objection is
18    made. In such case the clerk shall pay to the mortgagee the
19    amount tendered minus the amount to which the objection
20    pertains.
21        (3) Upon payment to the clerk, whether or not the owner
22    of redemption files an objection at the time of payment,
23    the clerk shall give a receipt of payment to the person
24    redeeming from the foreclosure, and shall file a copy of
25    that receipt in the foreclosure record. Upon receipt of the
26    amounts specified to be paid to the mortgagee pursuant to



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1    this Section, the mortgagee shall promptly furnish the
2    mortgagor with a release of the mortgage or satisfaction of
3    the judgment, as appropriate, and the evidence of all
4    indebtedness secured by the mortgage shall be cancelled.
5    (g) Procedure Upon Objection. If an objection is filed by
6an owner of redemption in accordance with paragraph (2) of
7subsection (f) of Section 15-1603, the clerk shall hold the
8amount to which the objection pertains until the court orders
9distribution of those funds. The court shall hold a hearing
10promptly to determine the distribution of any funds held by the
11clerk pursuant to such objection. Each party shall pay its own
12costs and expenses in connection with any objection, including
13attorneys' fees, subject to Section 2-611 of the Code of Civil
15    (h) Failure to Redeem. Unless the real estate being
16foreclosed is redeemed from the foreclosure, it shall be sold
17as provided in this Article.
18(Source: P.A. 86-974.).
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".