State of Illinois
91st General Assembly
Legislation

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[ Engrossed ][ House Amendment 001 ]

91_HB1781

 
                                               LRB9105136WHpr

 1        AN  ACT  to amend the Code of Civil Procedure by changing
 2    Sections 15-1603.

 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 15-1603 as follows:

 7        (735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
 8        Sec. 15-1603.  Redemption.
 9        (a)  Owner  of  Redemption.   Except   as   provided   in
10    subsection   (b)   of  Section  15-1402,  only  an  owner  of
11    redemption may redeem from the foreclosure, and such owner of
12    redemption may  redeem  only  during  the  redemption  period
13    specified  in  subsection  (b) of Section 15-1603 and only if
14    the right of redemption has not been validly waived.
15        (b)  Redemption Period.
16             (1)  In the foreclosure of a mortgage of real estate
17        which  is  residential  real  estate  at  the  time   the
18        foreclosure is commenced, the redemption period shall end
19        on  the  later of (i) the date 7 months from the date the
20        mortgagor or, if more than one, all  the  mortgagors  (A)
21        have  been  served  with summons or by publication or (B)
22        have otherwise  submitted  to  the  jurisdiction  of  the
23        court,  or (ii) the date one month 3 months from the date
24        of entry of a judgment of foreclosure.
25             (2)  (Blank)  In   all   other   foreclosures,   the
26        redemption  period shall end on the later of (i) the date
27        6 months from the date the mortgagor  or,  if  more  than
28        one, all the mortgagors (A) have been served with summons
29        or  by publication or (B) have otherwise submitted to the
30        jurisdiction of the court, or (ii) the date 3 months from
31        the date of entry of a judgment of foreclosure.
 
                            -2-                LRB9105136WHpr
 1             (3)  (Blank) Notwithstanding paragraphs (1) and (2),
 2        the redemption period shall  end  at  the  later  of  the
 3        expiration  of  any  reinstatement period provided for in
 4        Section 15-1602 or the date 60 days after  the  date  the
 5        judgment  of  foreclosure  is entered, if the court finds
 6        that (i) the value of the mortgaged real estate as of the
 7        date of the judgment is  less  than  90%  of  the  amount
 8        specified  pursuant  to subsection (d) of Section 15-1603
 9        and (ii) the mortgagee waives any and  all  rights  to  a
10        personal  judgment for a deficiency against the mortgagor
11        and against all other persons liable for the indebtedness
12        or other obligations secured by the mortgage.
13             (4)  (Blank) Notwithstanding paragraphs (1) and (2),
14        the redemption period shall end on the date 30 days after
15        the date the judgment of foreclosure is  entered  if  the
16        court  finds  that  the  mortgaged  real  estate has been
17        abandoned.  In  cases  where  the  redemption  period  is
18        shortened  on  account  of abandonment, the reinstatement
19        period shall not extend beyond the redemption  period  as
20        shortened.
21        (c)  Extension of Redemption Period.
22             (1)  Once  expired, the right of redemption provided
23        for in Sections 15-1603 or 15-1604 shall not be  revived.
24        The  period within which the right of redemption provided
25        for in Sections 15-1603 or 15-1604 may be exercised  runs
26        independently  of any action by any person to enforce the
27        judgment  of  foreclosure  or  effect  a  sale   pursuant
28        thereto.   Neither the initiation of any legal proceeding
29        nor the order of any court staying the enforcement  of  a
30        judgment  of  foreclosure  or  the  sale  pursuant  to  a
31        judgment  or the confirmation of the sale, shall have the
32        effect of tolling the running of the redemption period.
33             (2)  If a court has the authority to stay, and  does
34        stay,  the  running  of  the redemption period, or if the
 
                            -3-                LRB9105136WHpr
 1        redemption period is  extended  by  any  statute  of  the
 2        United  States,  the  redemption period shall be extended
 3        until the expiration of the same number of days after the
 4        expiration of the  stay  order  as  the  number  of  days
 5        remaining  in  the redemption period at the time the stay
 6        order  became  effective,  or,  if   later,   until   the
 7        expiration of 30 days after the stay order terminates. If
 8        the  stay order terminates more than 30 days prior to the
 9        expiration  of  the  redemption  period,  the  redemption
10        period shall not be extended.
11        (d)  Amount Required to Redeem.  The amount  required  to
12    redeem shall be the sum of:
13             (1)  The   amount   specified  in  the  judgment  of
14        foreclosure, which shall consist of (i) all principal and
15        accrued interest secured by the mortgage and  due  as  of
16        the  date of the judgment, (ii) all costs allowed by law,
17        (iii) costs and expenses approved by the court,  (iv)  to
18        the  extent  provided for in the mortgage and approved by
19        the court,  additional  costs,  expenses  and  reasonable
20        attorneys'  fees  incurred  by  the  mortgagee,  (v)  all
21        amounts  paid  pursuant  to  Section 15-1505 and (vi) per
22        diem interest from the date of judgment to  the  date  of
23        redemption  calculated  at  the mortgage rate of interest
24        applicable as if no default had occurred; and
25             (2)  The amount of other expenses authorized by  the
26        court  which  the mortgagee reasonably incurs between the
27        date of judgment and the date of redemption, which  shall
28        be  the  amount  certified by the mortgagee in accordance
29        with subsection (e) of Section 15-1603.
30        (e)  Notice of Intent to Redeem.  An owner of  redemption
31    who  intends  to  redeem  shall  give  written notice of such
32    intent to  redeem  to  the  mortgagee's  attorney  of  record
33    specifying the date designated for redemption and the current
34    address  of the owner of redemption for purposes of receiving
 
                            -4-                LRB9105136WHpr
 1    notice.  Such owner of redemption shall file with  the  clerk
 2    of  the  court  a certification of the giving of such notice.
 3    The notice of intent  to  redeem  must  be  received  by  the
 4    mortgagee's  attorney  at least 15 days (other than Saturday,
 5    Sunday or court holiday) prior to  the  date  designated  for
 6    redemption.   The  mortgagee  shall  thereupon  file with the
 7    clerk of the court and shall give written notice to the owner
 8    of redemption at  least  three  days  (other  than  Saturday,
 9    Sunday  or  court  holiday)  before  the  date designated for
10    redemption a certification,  accompanied by  copies  of  paid
11    receipts   or   appropriate   affidavits,   of  any  expenses
12    authorized in paragraph (2)  of  subsection  (d)  of  Section
13    15-1603.   If the mortgagee fails to serve such certification
14    within  the  time  specified  herein,  then  the   owner   of
15    redemption  intending  to  redeem  may  redeem  on  the  date
16    designated  for redemption in the notice of intent to redeem,
17    and the mortgagee shall not be entitled  to  payment  of  any
18    expenses  authorized  in  paragraph  (2) of subsection (d) of
19    Section 15-1603.
20        (f)  Procedure for Redemption.
21             (1)  An owner of  redemption  may  redeem  the  real
22        estate   from   the  foreclosure  by  paying  the  amount
23        specified in subsection (d) of  Section  15-1603  to  the
24        mortgagee  or  the  mortgagee's  attorney of record on or
25        before the date designated  for  redemption  pursuant  to
26        subsection (e) of Section 15-1603.
27             (2)  If  the  mortgagee refuses to accept payment or
28        if the owner of redemption redeeming from the foreclosure
29        objects to the reasonableness of the additional  expenses
30        authorized  in paragraph (2) of subsection (d) of Section
31        15-1603 and certified in accordance with  subsection  (e)
32        of Section 15-1603, the owner of redemption shall pay the
33        certified  amount  to the clerk of the court on or before
34        the date  designated  for  redemption,  together  with  a
 
                            -5-                LRB9105136WHpr
 1        written   statement  specifying  the  expenses  to  which
 2        objection is made.  In such case the clerk shall  pay  to
 3        the  mortgagee  the  amount  tendered minus the amount to
 4        which the objection pertains.
 5             (3)  Upon payment to the clerk, whether or  not  the
 6        owner  of  redemption  files  an objection at the time of
 7        payment, the clerk shall give a receipt of payment to the
 8        person redeeming from the foreclosure, and shall  file  a
 9        copy  of  that  receipt  in the foreclosure record.  Upon
10        receipt of the  amounts  specified  to  be  paid  to  the
11        mortgagee  pursuant  to this Section, the mortgagee shall
12        promptly furnish the mortgagor  with  a  release  of  the
13        mortgage or satisfaction of the judgment, as appropriate,
14        and  the  evidence  of  all  indebtedness  secured by the
15        mortgage shall be cancelled.
16        (g)  Procedure Upon Objection.  If an objection is  filed
17    by an owner of redemption in accordance with paragraph (2) of
18    subsection  (f)  of Section 15-1603, the clerk shall hold the
19    amount to which the objection pertains until the court orders
20    distribution of those funds.  The court shall hold a  hearing
21    promptly  to  determine the distribution of any funds held by
22    the clerk pursuant to such objection. Each  party  shall  pay
23    its  own costs and expenses in connection with any objection,
24    including attorneys' fees, subject to Section  2-611  of  the
25    Code of Civil Procedure.
26        (h)  Failure  to  Redeem.   Unless  the real estate being
27    foreclosed is redeemed from the foreclosure, it shall be sold
28    as provided in this Article.
29    (Source: P.A. 86-974.)






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