SB0255 EngrossedLRB102 05123 LNS 15144 b

1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Code of Civil Procedure is amended by
5changing Section 15-1508 as follows:
6    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
7    Sec. 15-1508. Report of sale and confirmation of sale.
8    (a) Report. The person conducting the sale shall promptly
9make a report to the court, which report shall include a copy
10of all receipts and, if any, certificate of sale.
11    (b) Hearing. Upon motion and notice in accordance with
12court rules applicable to motions generally, which motion
13shall not be made prior to sale, the court shall conduct a
14hearing to confirm the sale. Unless the court finds that (i) a
15notice required in accordance with subsection (c) of Section
1615-1507 was not given, (ii) the terms of sale were
17unconscionable, (iii) the sale was conducted fraudulently, or
18(iv) justice was otherwise not done, the court shall then
19enter an order confirming the sale. The confirmation order
20shall include a name, address, and telephone number of the
21holder of the certificate of sale or deed issued pursuant to
22that certificate or, if no certificate or deed was issued, the
23purchaser, whom a municipality or county may contact with



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1concerns about the real estate. The confirmation order may
3        (1) approve the mortgagee's fees and costs (i) arising
4    between the entry of the judgment of foreclosure and the
5    confirmation hearing, and (ii) incurred on or after the
6    date of execution of an affidavit under subsection (a) of
7    Section 15-1506 and prior to the judgment but not included
8    in the judgment, those costs and fees to be allowable to
9    the same extent as provided in the note and mortgage and in
10    Section 15-1504;
11        (2) provide for a personal judgment against any party
12    for a deficiency; and
13        (3) determine the priority of the judgments of parties
14    who deferred proving the priority pursuant to subsection
15    (h) of Section 15-1506, but the court shall not defer
16    confirming the sale pending the determination of such
17    priority.
18    (b-3) Hearing to confirm sale of abandoned residential
19property. Upon motion and notice by first-class mail to the
20last known address of the mortgagor, which motion shall be
21made prior to the sale and heard by the court at the earliest
22practicable time after conclusion of the sale, and upon the
23posting at the property address of the notice required by
24paragraph (2) of subsection (l) of Section 15-1505.8, the
25court shall enter an order confirming the sale of the
26abandoned residential property, unless the court finds that a



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1reason set forth in items (i) through (iv) of subsection (b) of
2this Section exists for not approving the sale, or an order is
3entered pursuant to subsection (h) of Section 15-1505.8. The
4confirmation order also may address the matters identified in
5items (1) through (3) of subsection (b) of this Section. The
6notice required under subsection (b-5) of this Section shall
7not be required.
8    (b-5) Notice with respect to residential real estate. With
9respect to residential real estate, the notice required under
10subsection (b) of this Section shall be sent to the mortgagor
11even if the mortgagor has previously been held in default. In
12the event the mortgagor has filed an appearance, the notice
13shall be sent to the address indicated on the appearance. In
14all other cases, the notice shall be sent to the mortgagor at
15the common address of the foreclosed property. The notice
16shall be sent by first class mail. Unless the right to
17possession has been previously terminated by the court, the
18notice shall include the following language in 12-point
19boldface capitalized type:
24    (b-10) Notice of confirmation order sent to municipality
25or county. A copy of the confirmation order required under
26subsection (b) shall be sent to the municipality in which the



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1foreclosed property is located, or to the county within the
2boundary of which the foreclosed property is located if the
3foreclosed property is located in an unincorporated territory.
4A municipality or county must clearly publish on its website a
5single address to which a copy of the order shall be sent. If a
6municipality or county does not maintain a website, then the
7municipality or county must publicly post in its main office a
8single address to which a copy of the order shall be sent. In
9the event that a municipality or county has not complied with
10the publication requirement in this subsection (b-10), then a
11copy of the order shall be sent by first class mail, postage
12prepaid, to the chairperson of the county board or county
13clerk in the case of a county, to the mayor or city clerk in
14the case of a city, to the president of the board of trustees
15or village clerk in the case of a village, or to the president
16or town clerk in the case of a town.
17    (b-15) Notice of confirmation order sent to known
18insurers. With respect to residential real estate, the party
19filing the complaint shall send a copy of the confirmation
20order required under subsection (b) by first class mail,
21postage prepaid, to the last known property insurer of the
22foreclosed property. Failure to send or receive a copy of the
23order shall not impair or abrogate in any way the rights of the
24mortgagee or purchaser or affect the status of the foreclosure
26    (c) Failure to Give Notice. If any sale is held without



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1compliance with subsection (c) of Section 15-1507 of this
2Article, any party entitled to the notice provided for in
3paragraph (3) of that subsection (c) who was not so notified
4may, by motion supported by affidavit made prior to
5confirmation of such sale, ask the court which entered the
6judgment to set aside the sale. Any such party shall guarantee
7or secure by bond a bid equal to the successful bid at the
8prior sale, unless the party seeking to set aside the sale is
9the mortgagor, the real estate sold at the sale is residential
10real estate, and the mortgagor occupies the residential real
11estate at the time the motion is filed. In that event, no
12guarantee or bond shall be required of the mortgagor. Any
13subsequent sale is subject to the same notice requirement as
14the original sale.
15    (d) Validity of Sale. Except as provided in subsection (c)
16of Section 15-1508, no sale under this Article shall be held
17invalid or be set aside because of any defect in the notice
18thereof or in the publication of the same, or in the
19proceedings of the officer conducting the sale, except upon
20good cause shown in a hearing pursuant to subsection (b) of
21Section 15-1508. At any time after a sale has occurred, any
22party entitled to notice under paragraph (3) of subsection (c)
23of Section 15-1507 may recover from the mortgagee any damages
24caused by the mortgagee's failure to comply with such
25paragraph (3). Any party who recovers damages in a judicial
26proceeding brought under this subsection may also recover from



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1the mortgagee the reasonable expenses of litigation, including
2reasonable attorney's fees.
3    (d-5) Making Home Affordable Program. The court that
4entered the judgment shall set aside a sale held pursuant to
5Section 15-1507, upon motion of the mortgagor at any time
6prior to the confirmation of the sale, if the mortgagor proves
7by a preponderance of the evidence that (i) the mortgagor has
8applied for assistance under the Making Home Affordable
9Program established by the United States Department of the
10Treasury pursuant to the Emergency Economic Stabilization Act
11of 2008, as amended by the American Recovery and Reinvestment
12Act of 2009, and (ii) the mortgaged real estate was sold in
13material violation of the program's requirements for
14proceeding to a judicial sale. The provisions of this
15subsection (d-5) are operative and, except for this sentence,
16shall become inoperative on January 1, 2018 for all actions
17filed under this Article after December 31, 2017, in which the
18mortgagor did not apply for assistance under the Making Home
19Affordable Program on or before December 31, 2016. The changes
20to this subsection (d-5) by this amendatory Act of the 99th
21General Assembly apply to all cases pending and filed on or
22after the effective date of this amendatory Act of the 99th
23General Assembly.
24    (e) Deficiency Judgment. In any order confirming a sale
25pursuant to the judgment of foreclosure, the court shall also
26enter a personal judgment for deficiency against any party (i)



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1if otherwise authorized and (ii) to the extent requested in
2the complaint and proven upon presentation of the report of
3sale in accordance with Section 15-1508. Except as otherwise
4provided in this Article, a judgment may be entered for any
5balance of money that may be found due to the plaintiff, over
6and above the proceeds of the sale or sales, and enforcement
7may be had for the collection of such balance, the same as when
8the judgment is solely for the payment of money. Such judgment
9may be entered, or enforcement had, only in cases where
10personal service has been had upon the persons personally
11liable for the mortgage indebtedness, unless they have entered
12their appearance in the foreclosure action.
13    (f) Satisfaction. Upon confirmation of the sale, the
14judgment stands satisfied to the extent of the sale price less
15expenses and costs. If the order confirming the sale includes
16a deficiency judgment, the judgment shall become a lien in the
17manner of any other judgment for the payment of money.
18    (g) The order confirming the sale shall include,
19notwithstanding any previous orders awarding possession during
20the pendency of the foreclosure, an award to the purchaser of
21possession of the mortgaged real estate, as of the date 30 days
22after the entry of the order, against the parties to the
23foreclosure whose interests have been terminated.
24    An eviction order authorizing the removal of a person from
25possession of the mortgaged real estate shall be entered and
26enforced only against those persons personally named as



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1individuals in the complaint or the petition under subsection
2(h) of Section 15-1701. No eviction order issued under this
3Section shall be entered against a lessee with a bona fide
4lease of a dwelling unit in residential real estate in
5foreclosure, whether or not the lessee has been made a party in
6the foreclosure. An order shall not be entered and enforced
7against any person who is only generically described as an
8unknown owner or nonrecord claimant or by another generic
9designation in the complaint.
10    Notwithstanding the preceding paragraph, the failure to
11personally name, include, or seek an eviction order against a
12person in the confirmation order shall not abrogate any right
13that the purchaser may have to possession of the mortgaged
14real estate and to maintain an eviction proceeding under
15Article IX of this Code or, if applicable, under subsection
16(h) of Section 15-1701; and eviction of a person who (1) has
17not been personally named as a party to the foreclosure and (2)
18has not been provided an opportunity to be heard in the
19foreclosure proceeding may be sought only by maintaining a
20proceeding under Article IX of this Code or, if applicable,
21under subsection (h) of Section 15-1701.
22    (h) With respect to mortgaged real estate containing 5 or
23more dwelling units, the order confirming the sale shall also
24provide that (i) the mortgagor shall transfer to the purchaser
25the security deposits, if any, that the mortgagor received to
26secure payment of rent or to compensate for damage to the



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1mortgaged real estate from any current occupant of a dwelling
2unit of the mortgaged real estate, as well as any statutory
3interest that has not been paid to the occupant, and (ii) the
4mortgagor shall provide an accounting of the security deposits
5that are transferred, including the name and address of each
6occupant for whom the mortgagor holds the deposit and the
7amount of the deposit and any statutory interest.
8(Source: P.A. 99-640, eff. 7-28-16; 100-173, eff. 1-1-18.)
9    Section 99. Effective date. This Act takes effect upon
10becoming law.