(735 ILCS 5/15-1224)
Bona fide lease.
(a) For purposes of Sections 9-207.5, 15-1225, 15-1506, 15-1508, and 15-1701 of this Code only, the term "bona fide lease" means a lease of a dwelling unit in residential real estate in foreclosure for which:
(1) the mortgagor or the child, spouse, or parent of
the mortgagor is not the tenant;
(2) the lease was the result of an arms-length
(3) the lease requires the receipt of rent that is
not substantially less than fair market rent for the property or the rent is reduced or subsidized pursuant to a federal, State, or local subsidy; and
(4) either (i) the lease was entered into or renewed
on or before the date of the filing of the lis pendens on the residential real estate in foreclosure pursuant to Section 2-1901 of this Code or (ii) the lease was entered into or renewed after the date of the filing of the lis pendens on the residential real estate in foreclosure and before the date of the judicial sale of the residential real estate in foreclosure, and the term of the lease is for one year or less.
(b) A written lease for a term exceeding one year that is entered into or renewed after the date of the filing of the lis pendens on the residential real estate in foreclosure pursuant to Section 2-1901 of this Code and before the date of the judicial sale of the residential real estate in foreclosure that otherwise meets the requirements of subsection (a) of this Section shall be deemed to be a bona fide lease for a term of one year.
(c) An oral lease entered into at any time before the date of the judicial sale of the residential real estate in foreclosure that otherwise meets the requirements of subsection (a) of this Section shall be deemed to be a bona fide lease for a month-to-month term, unless the lessee proves by a preponderance of evidence that the oral lease is for a longer term. In no event shall an oral lease be deemed to be a bona fide lease for a term of more than one year.
(d) A written or oral lease entered into on or after the date of the judicial sale of the residential real estate in foreclosure and before the date of the court order confirming the judicial sale that otherwise meets the requirements of subsection (a) of this Section shall be deemed to be a bona fide lease for a month-to-month term.
(e) Notwithstanding paragraph (1) of subsection (a) of this Section, a child, spouse, or parent of the mortgagor may prove by a preponderance of evidence that a written or oral lease that otherwise meets the requirements of subsection (a) of this Section is a bona fide lease.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1302)
(from Ch. 110, par. 15-1302)
Certain Future Advances.
(a) Advances Made After
Eighteen Months. Except as provided in subsection (b) of Section 15-1302, as to any
monies advanced or applied more than 18 months after a mortgage is
recorded, the mortgage shall be a lien as to subsequent purchasers and
judgment creditors only from the time such monies are advanced or applied.
However, nothing in this Section shall affect any lien arising or existing
by virtue of the Mechanics
(1) All monies advanced or applied pursuant to
commitment, whenever advanced or applied, shall be a lien from the time the mortgage is recorded. An advance shall be deemed made pursuant to commitment only if the mortgagee has bound itself to make such advance in the mortgage or in an instrument executed contemporaneously with, and referred to in, the mortgage, whether or not a subsequent event of default or other event not within the mortgagee's control has relieved or may relieve the mortgagee from its obligation.
(2) All monies advanced or applied, whenever advanced
or applied, in accordance with the terms of a reverse mortgage shall be a lien from the time the mortgage is recorded.
(3) All monies advanced or applied in accordance with
the terms of a revolving credit arrangement secured by a mortgage as authorized by law shall be a lien from the time the mortgage is recorded.
(4) All interest which in accordance with the terms
of a mortgage is accrued or added to the principal amount secured by the mortgage, whenever added, shall be a lien from the time the mortgage is recorded.
(5) All monies advanced by the mortgagee in
accordance with the terms of a mortgage to (i) preserve or restore the mortgaged real estate, (ii) preserve the lien of the mortgage or the priority thereof or (iii) enforce the mortgage, shall be a lien from the time the mortgage is recorded.
(Source: P.A. 96-328, eff. 8-11-09.)
(735 ILCS 5/15-1401.1)
Short sale in foreclosure.
(a) As used in this Section:
"Certified community development financial institution" means a community development financial institution that is certified by the Community Development Financial Institutions Fund in the U.S. Department of Treasury under 12 U.S.C. 4701 et seq.
"Short sale" means the sale of real
estate that is subject to a mortgage for an amount that is less
than the amount owed to the mortgagee on the outstanding
"Residential property" means real property on which there is a dwelling unit with accommodations for 4 or fewer separate households and occupied, or to be occupied, in whole or in part, by the mortgagor; however:
(i) "residential property" is limited to the primary
(ii) "residential property" does not include an
investment property or residence other than a primary residence; and
(iii) "residential property" does not include
residential property taken in whole or in part as collateral for a commercial loan.
(b) In a foreclosure of residential real estate, if (i) the
mortgagor presents to the mortgagee a bona fide written offer from a
third party to purchase the property that is the subject of the
foreclosure proceeding, (ii) the written offer to purchase is
for an amount which constitutes a short sale of the property,
and (iii) the mortgagor makes a written request to the
mortgagee to approve the sale on the terms of the offer to
purchase, the mortgagee must respond to the mortgagor within 90
days after receipt of the written offer and written request.
(c) The mortgagee shall determine whether to accept the mortgagor's short sale offer. Failure to accept the offer shall not impair or abrogate in any way the rights of the mortgagee or affect the status of the foreclosure proceedings. The 90-day period shall not operate as a stay of the proceedings.
(d) If an offer to purchase either a mortgage or residential property is made by an entity with a tax-exempt filing status under Section 501(c)(3) of the Internal Revenue Code for the purpose of reselling that mortgage or residential property to the mortgagor, and financing for the repurchase will be provided by a certified community development financial institution, an affidavit, statement, agreement, or addendum limiting ownership or occupancy of the residential property by the mortgagor shall not provide a basis to avoid a sale or transfer, nor is it enforceable against the acquiring entity or any real estate broker, mortgagor, or settlement agent named in the affidavit, statement, agreement, or addendum. At the time of the offer, the following disclosures shall be made to the mortgagee by the mortgagor in connection with any purchase or sale under this subsection: (i) the entity seeking to purchase shall disclose its tax-exempt status; (ii) the entity that will finance the sale following the purchase shall disclose its status as a certified community development financial institution; and (iii) the disclosure shall state whether the residential property is to be sold back to the mortgagor. Upon request by the mortgagee, a certified community development financial institution shall provide documentation evidencing its current certification status. Nothing in this subsection shall impair, abrogate, or abridge in any manner the rights of the mortgagee pursuant to subsection (c) to accept or reject an offer to purchase either a mortgage or residential property, nor shall it give rise to a cause of action.
(Source: P.A. 101-396, eff. 8-16-19.)
(735 ILCS 5/15-1402)
(from Ch. 110, par. 15-1402)
(a) No Objection. In a
foreclosure, the court shall enter a judgment satisfying the mortgage
indebtedness by vesting absolute title to the mortgaged real estate in the
mortgagee free and clear of all claims, liens (except liens of the United
States of America which cannot be foreclosed without judicial sale) and
interest of the mortgagor, including all rights of reinstatement and
redemption, and of all rights of all other persons made parties in the
foreclosure whose interests are subordinate to that of the mortgagee and
all nonrecord claimants given notice in accordance with paragraph (2) of
subsection (c) of Section
15-1502 if at any time before sale:
(1) the mortgagee offers, in connection with such a
judgment, to waive any and all rights to a personal judgment for deficiency against the mortgagor and against all other persons liable for the indebtedness or other obligations secured by the mortgage;
(2) such offer is made either in the foreclosure
complaint or by motion upon notice to all parties not in default;
(3) all mortgagors who then have an interest in the
mortgaged real estate, by answer to the complaint, response to the motion or stipulation filed with the court expressly consent to the entry of such judgment;
(4) no other party, by answer or by response to the
motion or stipulation, within the time allowed for such answer or response, objects to the entry of such judgment; and
(5) upon notice to all parties who have not
previously been found in default for failure to appear, answer or otherwise plead.
(b) Objection. If any party other than a mortgagor who
then has an interest in the mortgaged real estate objects to the entry
of such judgment by consent, the court, after hearing, shall enter an order
(1) that for good cause shown, the judgment by
consent shall not be allowed; or
(2) that, good cause not having been shown by the
objecting party and the objecting party not having agreed to pay the amount required to redeem in accordance with subsection (d) of Section 15-1603, title to the mortgaged real estate be vested in the mortgagee as requested by the mortgagee and consented to by the mortgagor; or
(3) determining the amount required to redeem in
accordance with subsection (d) of Section 15-1603, finding that the objecting party (or, if more than one party so objects, the objecting party who has the least priority) has agreed to pay such amount and additional interest under the mortgage accrued to the date of payment within 30 days after entry of the order, and declaring that upon payment of such amount within 30 days title to the mortgaged real estate shall be vested in such objecting party. Title so vested shall be free and clear of all claims, liens (except liens of the United States of America which cannot be foreclosed without judicial sale) and interest of the mortgagor and of all rights of other persons made parties in the foreclosure whose interests are subordinate to the interest of the mortgagee and all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15-1502. If any objecting party subject to such an order has not paid the amount required to redeem in accordance with that order within the 30-day period, the court (i) shall order that such title to the mortgaged real estate shall vest in the objecting party next higher in priority (and successively with respect to each other objecting party in increasing order of such party's priority), if any, upon that party's agreeing to pay within 30 days after the entry of such further order, such amount as specified in the original order plus additional interest under the terms of the mortgage accrued to the date of payment, provided that such party pays such amount within the 30-day period, and (ii) may order that the non-paying objecting party pay costs, interest accrued between the start of the preceding 30-day period and the later of the date another objecting party makes the payment, if applicable, or the date such period expired, and the reasonable attorneys' fees incurred by all other parties on account of that party's objection.
(c) Judgment. Any judgment entered pursuant to Section 15-1402 shall
recite the mortgagee's waiver of rights to a personal judgment for
deficiency and shall bar the mortgagee from obtaining such a deficiency
judgment against the mortgagor or any other person liable for the
indebtedness or other obligations secured by the mortgage.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1501)
(from Ch. 110, par. 15-1501)
(a) Necessary Parties. For the purposes of
Section 2-405 of the Code of Civil Procedure, only (i) the mortgagor and (ii)
persons (but not guarantors)
who owe payment of indebtedness or the performance of other
obligations secured by the mortgage and against whom personal liability is
asserted shall be necessary parties defendant in
a foreclosure. The court may proceed to adjudicate their respective
interests, but any disposition of the mortgaged real estate shall be
subject to (i) the interests of all other persons not made a party or (ii)
interests in the mortgaged real estate not otherwise barred or
terminated in the foreclosure.
(b) Permissible Parties. Any party may join as a party any other
person, although such person is not a necessary party, including, without
limitation, the following:
(1) All persons having a possessory interest in the
(2) A mortgagor's spouse who has waived the right of
(3) A trustee holding an interest in the mortgaged
real estate or a beneficiary of such trust;
(4) The owner or holder of a note secured by a trust
(5) Guarantors, provided that in a foreclosure any
such guarantor also may be joined as a party in a separate count in an action on such guarantor's guaranty;
(6) The State of Illinois or any political
subdivision thereof, where a foreclosure involves real estate upon which the State or such subdivision has an interest or claim for lien, in which case "An Act in relation to immunity for the State of Illinois", approved December 10, 1971, as amended, shall not be effective;
(7) The United States of America or any agency or
department thereof where a foreclosure involves real estate upon which the United States of America or such agency or department has an interest or a claim for lien;
(8) Any assignee of leases or rents relating to the
(9) Any person who may have a lien under the
(10) Any other mortgagee or claimant.
(c) Unknown Owners. Any unknown owner may be made a party in accordance
with Section 2-413 of the Code of Civil Procedure.
(d) Right to Become Party. Any person who has or claims an interest in
real estate which is the subject of a foreclosure or an interest in any
debt secured by the mortgage shall have an unconditional
right to appear and become a party in such foreclosure in accordance with
subsection (e) of Section 15-1501, provided, that neither such
appearance by a lessee
whose interest in the real estate is subordinate to the interest being
foreclosed, nor the act of making such lessee a party,
shall result in the termination of the lessee's lease unless the
termination of the lease or lessee's interest in the mortgaged real estate is
ordered by the court in the judgment of foreclosure.
(e) Time of Intervention.
(1) Of Right. A person not a party, other than a
nonrecord claimant given notice in accordance with paragraph (2) of subsection (c) of Section 15-1502, who has or claims an interest in the mortgaged real estate may appear and become a party at any time prior to the entry of judgment of foreclosure. A nonrecord claimant given such notice may appear and become a party at any time prior to the earlier of (i) the entry of a judgment of foreclosure or (ii) 30 days after such notice is given.
(2) In Court's Discretion. After the right to
intervene expires and prior to the sale in accordance with the judgment, the court may permit a person who has or claims an interest in the mortgaged real estate to appear and become a party on such terms as the court may deem just.
(3) Later Right. After the sale of the mortgaged
real estate in accordance with a judgment of foreclosure and prior to the entry of an order confirming the sale, a person who has or claims an interest in the mortgaged real estate, may appear and become a party, on such terms as the court may deem just, for the sole purpose of claiming an interest in the proceeds of sale. Any such party shall be deemed a party from the commencement of the foreclosure, and the interest of such party in the real estate shall be subject to all orders and judgments entered in the foreclosure.
(4) Termination of Interest. Except as provided in
Section 15-1501(d), the interest of any person who is allowed to appear and become a party shall be terminated, and the interest of such party in the real estate shall attach to the proceeds of sale.
(f) Separate Actions. Any mortgagee or claimant, other than the
mortgagee who commences a foreclosure, whose interest in the mortgaged real
estate is recorded prior to the filing of a notice of foreclosure in
accordance with this Article but who is not made a party to such
foreclosure, shall not be barred from filing a separate foreclosure (i) as
an intervening defendant or counterclaimant in accordance with subsections
(d) and (e) of Section
15-1501 if a judgment of foreclosure has not been entered
in the original foreclosure or (ii) in a new foreclosure subsequent to the
entry of a judgment of foreclosure in the original foreclosure.
(g) Service on the State of Illinois. When making the State of
Illinois a party to a foreclosure, summons may be served by sending, by
registered or certified mail, a copy of the summons and the complaint to
the Attorney General. The complaint shall set forth with particularity the
nature of the interest or lien of the State of Illinois. If such interest
or lien appears in a recorded instrument, the complaint must state the
document number of the instrument and the office wherein it was recorded.
(h) Special Representatives. With respect to the property that is the subject of the action, the court is not required to appoint a special representative for a deceased mortgagor for the purpose of defending the action, if there is a:
(1) living person, persons, or entity that holds a
100% interest in the property, by virtue of being the deceased mortgagor's surviving joint tenant or surviving tenant by the entirety;
(2) beneficiary under a transfer on death instrument
executed by the deceased mortgagor prior to death;
(3) person, persons, or entity that was conveyed
title to the property by the deceased mortgagor prior to death;
(4) person, persons, or entity that was conveyed
title to the property from the deceased mortgagor's probate estate by the administrator or executor; or
(5) trust that was conveyed title to the property by:
(A) the deceased mortgagor prior to death; or
(B) any other person, persons, or entity that is
identified in this subsection (h) as being exempt from the requirement to appoint a special representative.
In no event may a deficiency judgment be sought or entered in the foreclosure case pursuant to subsection (e) of Section 15-1508 against a deceased mortgagor.
(Source: P.A. 98-514, eff. 11-19-13; 99-24, eff. 1-1-16
(735 ILCS 5/15-1501.6)
Relief in mortgage foreclosure proceedings for military personnel in military service.
(a) In this Section:
"Military service" means any full-time training or duty, no matter how described under federal or State law, for which a service member is ordered to report by the President, Governor of a state, commonwealth, or territory of the United States, or other appropriate military authority.
"Service member" means a resident of Illinois who is a member of any component of the U.S. Armed Forces or the National Guard of any state, the District of Columbia, a commonwealth, or a territory of the United States.
(b) In an action for foreclosure, a mortgagor who is a service member that has entered military service for a period greater than 29 consecutive days or any member of the mortgagor's family who resides with the mortgagor at the mortgaged premises, if the mortgagor entered into the mortgage agreement before the mortgagor received orders for military service on or after the effective date of this amendatory Act of the 97th General Assembly, may file a motion for relief and the court shall, if the mortgagor's ability to pay the agreed mortgage payments or to defend the foreclosure proceedings is materially affected by the mortgagor's military service, do one or more of the following:
(1) stay the proceedings for a period of 90 days
after the mortgagor returns from military service, unless, in the opinion of the court, justice and equity require a longer or shorter period of time; or
(2) adjust the obligation under the mortgage
agreement by reducing the monthly payments for a period lasting up to 90 days after the mortgagor returns from military service and extending the term of the mortgage, provided that the adjustment preserves the interest of all parties to it.
(c) In order to be eligible for the benefits granted to a service member under this Section, a service member or a member of the service member's family who resides with the service member at the mortgaged premises must provide the court and the mortgagee with a copy of the orders calling the service member to military service in excess of 29 consecutive days and of any orders further extending the service member's period of service.
(d) If a stay is granted under this Section, the court
may grant the mortgagee such relief as equity may require.
(e) The forms of relief available under this Section shall continue to be available up to 90 days after the completion of the service member's military service.
(f) In addition to any sanction available to the court for violation of a stay or order, a violation of this Section constitutes a civil rights violation under the Illinois Human Rights Act. All proceeds from the collection of any civil penalty
imposed pursuant to the Illinois Human Rights Act under this subsection shall be deposited into the Illinois Military Family Relief Fund.
(Source: P.A. 97-913, eff. 1-1-13.)