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| | SB2730 Enrolled | | LRB098 17569 HEP 52678 b |
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1 | | AN ACT concerning civil law.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Code of Civil Procedure is amended by adding |
5 | | Section 15-1603.5 as follows: |
6 | | (735 ILCS 5/15-1603.5 new) |
7 | | Sec. 15-1603.5. Strict foreclosure of an omitted |
8 | | subordinate interest. |
9 | | (a) As used in this Section, "omitted subordinate interest" |
10 | | means a recorded subordinate interest in real estate where: |
11 | | (1) the real estate is the subject of a foreclosure |
12 | | action under this Article; |
13 | | (2) a motion to confirm judicial sale under subsection |
14 | | (b) of Section 15-1508 is either pending or has been |
15 | | granted; |
16 | | (3) the interest attached to the real estate prior to |
17 | | the filing or recording of any notice in accordance with |
18 | | Sections 2-1901 and 15-1503; and |
19 | | (4) the person who has the interest was not named in |
20 | | the foreclosure complaint. |
21 | | (b) The holder of the certificate of sale or any person who |
22 | | acquired title pursuant to Section 15-1509 or any subsequent |
23 | | successor, assignee, transferee, or grantee who discovers an |
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1 | | omitted subordinate interest may file a strict foreclosure |
2 | | complaint naming the person who has the omitted subordinate |
3 | | interest as the defendant. A complaint filed under this Section |
4 | | must include substantially the following: |
5 | | (1) the identity of the plaintiff and how the plaintiff |
6 | | acquired its interest in the property which is the subject |
7 | | of the strict foreclosure; |
8 | | (2) the docket number of the prior foreclosure action |
9 | | and the recording number and date of the mortgage that was |
10 | | previously foreclosed; |
11 | | (3) the legal description, common address, and parcel |
12 | | identification number of the real estate which is the |
13 | | subject of the strict foreclosure; |
14 | | (4) the recording number and a copy of the recorded |
15 | | instrument identifying the person who has the omitted |
16 | | subordinate interest that is named as the defendant; |
17 | | (5) the amount of the successful bid at the foreclosure |
18 | | sale, as stated in the report of sale in the prior |
19 | | foreclosure action, with a copy of the report of sale |
20 | | attached to the complaint; |
21 | | (6) an allegation that, due to inadvertence or mistake |
22 | | or such other reason as may be applicable, the person who |
23 | | has the omitted subordinate interest was not made a party |
24 | | defendant in the prior foreclosure action and the omitted |
25 | | subordinate interest was not terminated by the judgment of |
26 | | foreclosure and when the subject property was sold by |
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1 | | judicial sale; and |
2 | | (7) a request for relief setting forth the redemption |
3 | | period as provided in this Section and identifying a |
4 | | contact by name and telephone number who will accept tender |
5 | | of the redemption amount. |
6 | | (c) Subject to the objection of the defendant, the court |
7 | | shall enter a judgment extinguishing the omitted subordinate |
8 | | interest. |
9 | | (d) If the defendant objects to the entry of the judgment, |
10 | | the court, after a hearing, shall enter an order providing |
11 | | either: |
12 | | (1) that the defendant has not agreed to pay the amount |
13 | | required to redeem, in which event the court shall proceed |
14 | | to enter the judgment; or |
15 | | (2) that the defendant has agreed to pay the amount |
16 | | required to redeem. |
17 | | (e) The amount required to redeem shall be the sum bid at |
18 | | the prior foreclosure sale plus any costs and fees incurred |
19 | | subsequent to the sale for the payment of taxes, preservation |
20 | | of the property, or any other actions taken by the holder of |
21 | | the certificate of sale to protect its interest in the |
22 | | property. The amount required to redeem shall not include any |
23 | | costs or fees incurred by the plaintiff in the strict |
24 | | foreclosure case filed under this Section. |
25 | | The order shall state that upon payment of the redemption |
26 | | amount within the redemption period, which shall extend 30 days |
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1 | | after the entry of the order, title to the real estate shall |
2 | | vest in the defendant who redeems pursuant to this Section. If |
3 | | the defendant subject to the order has not paid the amount |
4 | | required to redeem within the 30-day redemption period, the |
5 | | interest of the defendant in the property is terminated. |
6 | | (f) A person whose omitted subordinate interest was not |
7 | | terminated by a prior foreclosure action does not have a right |
8 | | to file a strict foreclosure action. |
9 | | (g) Notwithstanding that the person's omitted subordinate |
10 | | interest in the real estate has been terminated pursuant to |
11 | | this Section, nothing in this Section shall be construed to |
12 | | extinguish or impair any claim of such person in the surplus |
13 | | proceeds of a sale held or distributed pursuant to subsection |
14 | | (d) of Section 15-1512 of this Code after the confirmation of |
15 | | the sale of the real estate for which such person had an |
16 | | omitted subordinate interest.
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17 | | Section 99. Effective date. This Act takes effect upon |
18 | | becoming law.
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