State of Illinois
90th General Assembly

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      735 ILCS 5/15-1604        from Ch. 110, par. 15-1604
          Amends the mortgage foreclosure Article of  the  Code  of
      Civil  Procedure.    Authorizes  a  "special right to redeem"
      residential real estate if the  foreclosure  sale  price  was
      less  than  90%  of the real estate's fair market value (now,
      less than the amount required to redeem otherwise provided by
 1        AN ACT to amend the Code of Civil Procedure  by  changing
 2    Section 15-1604.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Code of Civil  Procedure  is  amended  by
 6    changing Section 15-1604 as follows:
 7        (735 ILCS 5/15-1604) (from Ch. 110, par. 15-1604)
 8        Sec. 15-1604.  Special Right to Redeem.
 9        (a)  Circumstances.  With  respect  to  residential  real
10    estate,  if (i) the purchaser at the sale was a mortgagee who
11    was a party to the foreclosure or its nominee  and  (ii)  the
12    sale price was less than 90% of the real estate's fair market
13    value  the  amount  specified  in  subsection  (d) of Section
14    15-1603, then, and only in such circumstances,  an  owner  of
15    redemption  as specified in subsection (a) of Section 15-1603
16    shall have a special right to redeem, for a period ending  30
17    days  after  the date the sale is confirmed, by paying to the
18    mortgagee (A) (i) the sale price,  (B)  (ii)  all  additional
19    costs and expenses incurred by the mortgagee set forth in the
20    report  of  sale  and  confirmed  by the court, and (C) (iii)
21    interest at the statutory judgment rate  from  the  date  the
22    purchase  price  was  paid  or  credited  as  an offset.  For
23    purposes of item (ii) in the preceding sentence, if the  real
24    estate's fair market value is disputed, then that fair market
25    value shall be determined by appraisal, and the mortgagee and
26    the mortgagor shall each be liable for 50% of the cost of the
27    appraisal.
28        (b)  Procedure.    Upon   receipt  of  such  amount,  the
29    mortgagee shall assign to the redeeming owner  of  redemption
30    its  certificate  of sale or its right to such certificate or
31    to a deed.  The mortgagee shall give to the  redeeming  owner
                            -2-                LRB9001747DJcd
 1    of  redemption  an  executed  duplicate  of  such assignment,
 2    marked "Duplicate", which duplicate the owner  of  redemption
 3    shall  file with the court.  If a deed has been issued to the
 4    mortgagee or its nominee, the holder of such  deed,  or  such
 5    holder's successor in title, shall execute and deliver a deed
 6    conveying the mortgaged real estate to the redeeming owner of
 7    redemption  subject  only  to  those  encumbrances that would
 8    normally arise on title  if  a  redemption  were  made  under
 9    Section  15-1603,  including  a deficiency, if any, resulting
10    from the foreclosure sale.  Nothing  contained  herein  shall
11    affect the right to a personal or in rem deficiency judgment,
12    and  enforcement thereof shall be allowed as provided by law.
13    Any deficiency judgment shall retain  the  same  priority  on
14    title   as  did  the  mortgage  from  which  it  arose.   The
15    mortgagee, its nominee or its successors in title  shall  not
16    permit  encumbrances on title arising on or after the date of
17    the deed to the mortgagee or nominee caused by or relating to
18    the mortgagee or its nominee or its successors in title.
19    (Source: P.A. 86-974.)

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