Sen. Jacqueline Y. Collins

Filed: 11/29/2010

 

 


 

 


 
09600SB3067sam001LRB096 20207 AJO 43989 a

1
AMENDMENT TO SENATE BILL 3067

2    AMENDMENT NO. ______. Amend Senate Bill 3067 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Code of Civil Procedure is amended by
5adding Section 15-1502.10 and changing Sections 15-1504 and
615-1506 as follows:
 
7    (735 ILCS 5/15-1502.10 new)
8    Sec. 15-1502.10. Condition precedent to foreclosure on
9residential real estate.
10    (a) This Section applies only to a foreclosure of property
11that is residential real estate.
12    (b) As a condition precedent to initiating foreclosure
13pursuant to this Section, the plaintiff shall (i) comply with
14the requirements of any federal, State, local, or contractual
15loss mitigation programs that apply to the subject mortgage,
16including, but not limited to, those requirements pertaining to

 

 

09600SB3067sam001- 2 -LRB096 20207 AJO 43989 a

1the federal Home Affordable Modification Program of the Making
2Home Affordable initiative of the Secretary of the Treasury,
3authorized under the Emergency Economic Stabilization Act of
42008 (Public Law 110-343) (HAMP); and (ii) if no federal,
5State, local, or contractual loss mitigation program applies to
6the subject mortgage, or if review under applicable federal,
7State, local, or contractual loss mitigation programs fails to
8result in a modification of the subject mortgage, review the
9subject mortgage for a loan modification under every other loss
10mitigation program utilized by plaintiff.
 
11    (735 ILCS 5/15-1504)  (from Ch. 110, par. 15-1504)
12    Sec. 15-1504. Pleadings and service.
13    (a) Foundational requirements for affidavits. Every
14affidavit filed in a foreclosure proceeding shall include a
15detailed description of the basis of the affiant's claimed
16personal knowledge of the facts set forth in the affidavit,
17including:
18        (1) a statement of which specific data systems the
19    affiant queried in preparing the affidavit, if the affiant
20    queried data systems in preparing the affidavit;
21        (2) a detailed factual statement of the basis of the
22    affiant's belief that each data system identified
23    contained accurate information; and
24        (3) if applicable, a detailed description of the basis
25    of the affiant's statement that the attached mortgage and

 

 

09600SB3067sam001- 3 -LRB096 20207 AJO 43989 a

1    note are true and correct.
2    (b) Lost note affidavit. A copy of the mortgage and note
3secured thereby shall be attached to the foreclosure complaint.
4If any note required to be attached to a complaint filed
5pursuant to this subsection (b) cannot be located for filing as
6an exhibit, the moving party shall file an affidavit stating
7the following:
8        (1) the reasonable efforts made by the moving party to
9    obtain the note; and
10        (2) a description of the terms of the note and any
11    riders attached thereto, including:
12            (A) date of execution;
13            (B) parties;
14            (C) amount;
15            (D) interest rate and, if applicable, the margin
16        used to calculate the interest rate and the initial
17        date of reset;
18            (E) if applicable, the existence of a prepayment
19        penalty; and
20            (F) if applicable, the existence of a balloon
21        payment.
22    Nothing in this subsection (b) shall be construed in
23derogation of the parties' rights established under Section
243-309 of the Uniform Commercial Code or any similar rights
25established under Illinois law.
26    (c) Loss mitigation affidavit. Every foreclosure complaint

 

 

09600SB3067sam001- 4 -LRB096 20207 AJO 43989 a

1shall include, as an attachment, an affidavit stating:
2        (1) Which federal, State, local, or contractual loss
3    mitigation programs apply to the subject mortgage.
4        (2) If applicable, that plaintiff has reviewed the
5    mortgage loan for modification under the Home Affordable
6    Modification Program of the Making Home Affordable
7    initiative of the Secretary of the Treasury, authorized
8    under the Emergency Economic Stabilization Act of 2008
9    (Public Law 110-343) (HAMP), the results of that review
10    (including all borrower-related and mortgage-related input
11    data used in any net present value analyses and any other
12    information required to be provided to the mortgagor under
13    the supplemental directives and other guidelines for
14    HAMP), a record of all HAMP-related communications with the
15    borrower, written or verbal, and, if applicable, the
16    reasons that plaintiff's review resulted in a denial of a
17    HAMP modification, including, as an attachment, a copy of
18    the written Non-Approval Notice provided to the mortgagor,
19    as required by U.S. Department of Treasury Supplemental
20    Directive 09-08.
21        (3) If applicable, that plaintiff has not reviewed the
22    mortgage loan for a HAMP modification, including the
23    reasons that plaintiff did not conduct the review.
24        (4) That plaintiff has complied with the requirements
25    of any other federal, State, local, or contractual loss
26    mitigation programs that apply to the subject mortgage and

 

 

09600SB3067sam001- 5 -LRB096 20207 AJO 43989 a

1    the results of any analysis conducted under those programs.
2        (5) That plaintiff has complied with the requirements
3    of Section 15-1502.5, the results of those efforts, and, if
4    applicable, the reasons that plaintiff's efforts did not
5    result in an agreed sustainable loan workout plan.
6        (6) A detailed description of all additional loss
7    mitigation efforts made by plaintiff and the results
8    thereof, including efforts to avoid foreclosure through a
9    non-HAMP loan modification program, short sale, deed in
10    lieu of foreclosure, or other alternative that is intended
11    to simplify the mortgagor's relinquishment of ownership of
12    the property, and, if applicable, an explanation for the
13    denial of a loan modification or other loss mitigation.
14    (d) (a) Form of Complaint. A foreclosure complaint may be
15in substantially the following form:
16        (1) Plaintiff files this complaint to foreclose the
17    mortgage (or other conveyance in the nature of a mortgage)
18    (hereinafter called "mortgage") hereinafter described and
19    joins the following person as defendants: (here insert
20    names of all defendants).
21        (2) Attached as Exhibit "A" is a copy of the mortgage
22    and as Exhibit "B" is a copy of the note secured thereby.
23        (3) Information concerning mortgage:
24            (A) Nature of instrument: (here insert whether a
25        mortgage, trust deed or other instrument in the nature
26        of a mortgage, etc.)

 

 

09600SB3067sam001- 6 -LRB096 20207 AJO 43989 a

1            (B) Date of mortgage:
2            (C) Name of mortgagor:
3            (D) Name of current mortgagee, and, if different,
4        name of original mortgagee:
5            (E) Date and place of recording:
6            (F) Identification of recording: (here insert book
7        and page number or document number)
8            (G) Interest subject to the mortgage: (here insert
9        whether fee simple, estate for years, undivided
10        interest, etc.)
11            (H) Amount of original indebtedness, including an
12        itemization of subsequent advances, fees, or
13        additional charges, including force-placed insurance,
14        made under the mortgage stating the purpose, payee,
15        amount, and date of each:
16            (I) Both the legal description of the mortgaged
17        real estate and the common address or other information
18        sufficient to identify it with reasonable certainty:
19            (J) Statement as to defaults, including, but not
20        necessarily limited to, date of default, current
21        unpaid principal balance, per diem interest accruing,
22        and any further information concerning the default:
23            (K) Each and every borrower payment made in the
24        last 36 months, including amount and date, whether such
25        payment was accepted or returned to the mortgagor, and
26        how the payment was applied to the borrower's account

 

 

09600SB3067sam001- 7 -LRB096 20207 AJO 43989 a

1        (e.g., applied to principal or interest, or placed in
2        suspense account):
3            (L) (K) Name of present owner of the real estate:
4            (M) (L) Names of other persons who are joined as
5        defendants and whose interest in or lien on the
6        mortgaged real estate is sought to be terminated:
7            (N) (M) Names of defendants claimed to be
8        personally liable for deficiency, if any:
9            (O) (N) Capacity in which plaintiff brings this
10        foreclosure (here indicate whether plaintiff is the
11        legal holder of the indebtedness, a pledgee, an agent,
12        the trustee under a trust deed or otherwise, as
13        appropriate); attached as Exhibit "C" are copies of all
14        documents, including endorsements, assignments, or
15        transfers, that demonstrate that plaintiff is legally
16        entitled to bring the foreclosure:
17            (P) (O) Facts in support of redemption period
18        shorter than the longer of (i) 7 months from the date
19        the mortgagor or, if more than one, all the mortgagors
20        (I) have been served with summons or by publication or
21        (II) have otherwise submitted to the jurisdiction of
22        the court, or (ii) 3 months from the entry of the
23        judgment of foreclosure, if sought (here indicate
24        whether based upon the real estate not being
25        residential, abandonment, or real estate value less
26        than 90% of amount owed, etc.):

 

 

09600SB3067sam001- 8 -LRB096 20207 AJO 43989 a

1            (Q) (P) Statement that the right of redemption has
2        been waived by all owners of redemption, if applicable:
3            (R) (Q) Facts in support of request for attorneys'
4        fees and of costs and expenses, if applicable:
5            (S) (R) Facts in support of a request for
6        appointment of mortgagee in possession or for
7        appointment of receiver, and identity of such
8        receiver, if sought:
9            (T) (S) Offer to mortgagor in accordance with
10        Section 15-1402 to accept title to the real estate in
11        satisfaction of all indebtedness and obligations
12        secured by the mortgage without judicial sale, if
13        sought:
14            (U) (T) Name or names of defendants whose right to
15        possess the mortgaged real estate, after the
16        confirmation of a foreclosure sale, is sought to be
17        terminated and, if not elsewhere stated, the facts in
18        support thereof:
19            (V) Attached as Exhibit "D" is the Lost Mitigation
20        Affidavit, as required by subsection (c) of this
21        Section.
 
22
REQUEST FOR RELIEF
23    Plaintiff requests:
24        (i) A judgment of foreclosure and sale.
25        (ii) An order granting a shortened redemption period,

 

 

09600SB3067sam001- 9 -LRB096 20207 AJO 43989 a

1    if sought.
2        (iii) A personal judgment for a deficiency, if sought.
3        (iv) An order granting possession, if sought.
4        (v) An order placing the mortgagee in possession or
5    appointing a receiver, if sought.
6        (vi) A judgment for attorneys' fees, costs and
7    expenses, if sought.
8    (e) (b) Required Information. A foreclosure complaint need
9contain only such statements and requests called for by the
10form set forth in subsection (a) of Section 15-1504 as may be
11appropriate for the relief sought. Such complaint may be filed
12as a counterclaim, may be joined with other counts or may
13include in the same count additional matters or a request for
14any additional relief permitted by Article II of the Code of
15Civil Procedure.
16    (f) (c) Allegations. The statements contained in a
17complaint in the form set forth in subsection (a) of Section
1815-1504 are deemed and construed to include allegations as
19follows:
20        (1) on the date indicated the obligor of the
21    indebtedness or other obligations secured by the mortgage
22    was justly indebted in the amount of the indicated original
23    indebtedness to the original mortgagee or payee of the
24    mortgage note;
25        (2) that the exhibits attached are true and correct
26    copies of the mortgage and note and are incorporated and

 

 

09600SB3067sam001- 10 -LRB096 20207 AJO 43989 a

1    made a part of the complaint by express reference;
2        (3) that the mortgagor was at the date indicated an
3    owner of the interest in the real estate described in the
4    complaint and that as of that date made, executed and
5    delivered the mortgage as security for the note or other
6    obligations;
7        (4) that the mortgage was recorded in the county in
8    which the mortgaged real estate is located, on the date
9    indicated, in the book and page or as the document number
10    indicated;
11        (5) that defaults occurred as indicated;
12        (6) that at the time of the filing of the complaint the
13    persons named as present owners are the owners of the
14    indicated interests in and to the real estate described;
15        (7) that the mortgage constitutes a valid, prior and
16    paramount lien upon the indicated interest in the mortgaged
17    real estate, which lien is prior and superior to the right,
18    title, interest, claim or lien of all parties and nonrecord
19    claimants whose interests in the mortgaged real estate are
20    sought to be terminated;
21        (8) that by reason of the defaults alleged, if the
22    indebtedness has not matured by its terms, the same has
23    become due by the exercise, by the plaintiff or other
24    persons having such power, of a right or power to declare
25    immediately due and payable the whole of all indebtedness
26    secured by the mortgage;

 

 

09600SB3067sam001- 11 -LRB096 20207 AJO 43989 a

1        (9) that any and all notices of default or election to
2    declare the indebtedness due and payable or other notices
3    required to be given have been duly and properly given;
4        (10) that any and all periods of grace or other period
5    of time allowed for the performance of the covenants or
6    conditions claimed to be breached or for the curing of any
7    breaches have expired;
8        (11) that the amounts indicated in the statement in the
9    complaint are correctly stated and if such statement
10    indicates any advances made or to be made by the plaintiff
11    or owner of the mortgage indebtedness, that such advances
12    were, in fact, made or will be required to be made, and
13    under and by virtue of the mortgage the same constitute
14    additional indebtedness secured by the mortgage; and
15        (12) that, upon confirmation of the sale, the holder of
16    the certificate of sale or deed issued pursuant to that
17    certificate or, if no certificate or deed was issued, the
18    purchaser at the sale will be entitled to full possession
19    of the mortgaged real estate against the parties named in
20    clause (T) of paragraph (3) of subsection (a) of Section
21    15-1504 or elsewhere to the same effect; the omission of
22    any party indicates that plaintiff will not seek a
23    possessory order in the order confirming sale unless the
24    request is subsequently made under subsection (h) of
25    Section 15-1701 or by separate action under Article 9 of
26    this Code.

 

 

09600SB3067sam001- 12 -LRB096 20207 AJO 43989 a

1    (g) (d) Request for Fees and Costs. A statement in the
2complaint that plaintiff seeks the inclusion of attorneys' fees
3and of costs and expenses shall be deemed and construed to
4include allegations that:
5        (1) plaintiff has been compelled to employ and retain
6    attorneys to prepare and file the complaint and to
7    represent and advise the plaintiff in the foreclosure of
8    the mortgage and the plaintiff will thereby become liable
9    for the usual, reasonable and customary fees of the
10    attorneys in that behalf;
11        (2) that the plaintiff has been compelled to advance or
12    will be compelled to advance, various sums of money in
13    payment of costs, fees, expenses and disbursements
14    incurred in connection with the foreclosure, including,
15    without limiting the generality of the foregoing, filing
16    fees, stenographer's fees, witness fees, costs of
17    publication, costs of procuring and preparing documentary
18    evidence and costs of procuring abstracts of title, Torrens
19    certificates, foreclosure minutes and a title insurance
20    policy;
21        (3) that under the terms of the mortgage, all such
22    advances, costs, attorneys' fees and other fees, expenses
23    and disbursements are made a lien upon the mortgaged real
24    estate and the plaintiff is entitled to recover all such
25    advances, costs, attorneys' fees, expenses and
26    disbursements, together with interest on all advances at

 

 

09600SB3067sam001- 13 -LRB096 20207 AJO 43989 a

1    the rate provided in the mortgage, or, if no rate is
2    provided therein, at the statutory judgment rate, from the
3    date on which such advances are made;
4        (4) that in order to protect the lien of the mortgage,
5    it may become necessary for plaintiff to pay taxes and
6    assessments which have been or may be levied upon the
7    mortgaged real estate;
8        (5) that in order to protect and preserve the mortgaged
9    real estate, it may also become necessary for the plaintiff
10    to pay liability (protecting mortgagor and mortgagee),
11    fire and other hazard insurance premiums on the mortgaged
12    real estate, make such repairs to the mortgaged real estate
13    as may reasonably be deemed necessary for the proper
14    preservation thereof, advance for costs to inspect the
15    mortgaged real estate or to appraise it, or both, and
16    advance for premiums for pre-existing private or
17    governmental mortgage insurance to the extent required
18    after a foreclosure is commenced in order to keep such
19    insurance in force; and
20        (6) that under the terms of the mortgage, any money so
21    paid or expended will become an additional indebtedness
22    secured by the mortgage and will bear interest from the
23    date such monies are advanced at the rate provided in the
24    mortgage, or, if no rate is provided, at the statutory
25    judgment rate.
26    (h) (e) Request for Foreclosure. The request for

 

 

09600SB3067sam001- 14 -LRB096 20207 AJO 43989 a

1foreclosure is deemed and construed to mean that the plaintiff
2requests that:
3        (1) an accounting may be taken under the direction of
4    the court of the amounts due and owing to the plaintiff;
5        (2) that the defendants be ordered to pay to the
6    plaintiff before expiration of any redemption period (or,
7    if no redemption period, before a short date fixed by the
8    court) whatever sums may appear to be due upon the taking
9    of such account, together with attorneys' fees and costs of
10    the proceedings (to the extent provided in the mortgage or
11    by law);
12        (3) that in default of such payment in accordance with
13    the judgment, the mortgaged real estate be sold as directed
14    by the court, to satisfy the amount due to the plaintiff as
15    set forth in the judgment, together with the interest
16    thereon at the statutory judgment rate from the date of the
17    judgment;
18        (4) that in the event the plaintiff is a purchaser of
19    the mortgaged real estate at such sale, the plaintiff may
20    offset against the purchase price of such real estate the
21    amounts due under the judgment of foreclosure and order
22    confirming the sale;
23        (5) that in the event of such sale and the failure of
24    any person entitled thereto to redeem prior to such sale
25    pursuant to this Article, the defendants made parties to
26    the foreclosure in accordance with this Article, and all

 

 

09600SB3067sam001- 15 -LRB096 20207 AJO 43989 a

1    nonrecord claimants given notice of the foreclosure in
2    accordance with this Article, and all persons claiming by,
3    through or under them, and each and any and all of them,
4    may be forever barred and foreclosed of any right, title,
5    interest, claim, lien, or right to redeem in and to the
6    mortgaged real estate; and
7        (6) that if no redemption is made prior to such sale, a
8    deed may be issued to the purchaser thereat according to
9    law and such purchaser be let into possession of the
10    mortgaged real estate in accordance with Part 17 of this
11    Article.
12    (i) (f) Request for Deficiency Judgment. A request for a
13personal judgment for a deficiency in a foreclosure complaint
14if the sale of the mortgaged real estate fails to produce a
15sufficient amount to pay the amount found due, the plaintiff
16may have a personal judgment against any party in the
17foreclosure indicated as being personally liable therefor and
18the enforcement thereof be had as provided by law.
19    (j) (g) Request for Possession or Receiver. A request for
20possession or appointment of a receiver has the meaning as
21stated in subsection (b) of Section 15-1706.
22    (k) (h) Answers by Parties. Any party may assert its
23interest by counterclaim and such counterclaim may at the
24option of that party stand in lieu of answer to the complaint
25for foreclosure and all counter complaints previously or
26thereafter filed in the foreclosure. Any such counterclaim

 

 

09600SB3067sam001- 16 -LRB096 20207 AJO 43989 a

1shall be deemed to constitute a statement that the counter
2claimant does not have sufficient knowledge to form a belief as
3to the truth or falsity of the allegations of the complaint and
4all other counterclaims, except to the extent that the
5counterclaim admits or specifically denies such allegations.
6(Source: P.A. 91-357, eff. 7-29-99.)
 
7    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
8    Sec. 15-1506. Judgment. (a) Evidence. In the trial of a
9foreclosure, the evidence to support the allegations of the
10complaint shall be taken in open court, except:
11    (1) where an allegation of fact in the complaint is not
12denied by a party's verified answer or verified counterclaim,
13or where a party pursuant to subsection (b) of Section 2-610 of
14the Code of Civil Procedure states, or is deemed to have
15stated, in its pleading that it has no knowledge of such
16allegation sufficient to form a belief and attaches the
17required affidavit, a sworn verification of the complaint or a
18separate affidavit setting forth such fact is sufficient
19evidence thereof against such party and no further evidence of
20such fact shall be required; and
21    (2) where all the allegations of fact in the complaint have
22been proved by verification of the complaint or affidavit, the
23court upon motion supported by an affidavit stating the amount
24which is due the mortgagee, may shall enter a judgment of
25foreclosure as requested in the complaint.

 

 

09600SB3067sam001- 17 -LRB096 20207 AJO 43989 a

1    (b) Instruments. In all cases the evidence of the
2indebtedness and the mortgage foreclosed shall be exhibited to
3the court and appropriately marked, and copies thereof shall be
4filed with the court.
5    (c) Summary and Default Judgments. Nothing in this Section
615-1506 shall prevent a party from obtaining a summary or
7default judgment authorized by Article II of the Code of Civil
8Procedure.
9    (d) Notice of Entry of Default. When any judgment in a
10foreclosure is entered by default, notice of such judgment
11shall be given in accordance with Section 2-1302 of the Code of
12Civil Procedure.
13    (e) Matters Required in Judgment. A judgment of foreclosure
14shall include the last date for redemption and all rulings of
15the court entered with respect to each request for relief set
16forth in the complaint. If the plaintiff in the action is not
17the original mortgagee, a judgment of foreclosure shall make
18specific findings of fact concerning the capacity in which the
19plaintiff brought the foreclosure action and a determination of
20whether this capacity legally entitles the plaintiff to bring
21the action. The judgment shall also include a finding by the
22court that: (i) the plaintiff has complied with any applicable
23federal, State, or local loss mitigation requirements; or (ii)
24there are no applicable federal, State, or local loss
25mitigation requirements. If the court determines that the
26plaintiff has not complied with applicable loss mitigation

 

 

09600SB3067sam001- 18 -LRB096 20207 AJO 43989 a

1requirements, the court shall stay the matter until the court
2determines that the plaintiff has complied with those
3requirements. The omission of the date for redemption shall not
4extend the time for redemption or impair the validity of the
5judgment.
6    (f) Special Matters in Judgment. Without limiting the
7general authority and powers of the court, special matters may
8be included in the judgment of foreclosure if sought by a party
9in the complaint or by separate motion. Such matters may
10include, without limitation:
11    (1) a manner of sale other than public auction;
12    (2) a sale by sealed bid;
13    (3) an official or other person who shall be the officer to
14conduct the sale other than the one customarily designated by
15the court;
16    (4) provisions for non-exclusive broker listings or
17designating a duly licensed real estate broker nominated by one
18of the parties to exclusively list the real estate for sale;
19    (5) the fees or commissions to be paid out of the sale
20proceeds to the listing or other duly licensed broker, if any,
21who shall have procured the accepted bid;
22    (6) the fees to be paid out of the sale proceeds to an
23auctioneer, if any, who shall have been authorized to conduct a
24public auction sale;
25    (7) whether and in what manner and with what content signs
26shall be posted on the real estate;

 

 

09600SB3067sam001- 19 -LRB096 20207 AJO 43989 a

1    (8) a particular time and place at which such bids shall be
2received;
3    (9) a particular newspaper or newspapers in which notice of
4sale shall be published;
5    (10) the format for the advertising of such sale, including
6the size, content and format of such advertising, and
7additional advertising of such sale;
8    (11) matters or exceptions to which title in the real
9estate may be subject at the sale;
10    (12) a requirement that title insurance in a specified form
11be provided to a purchaser at the sale, and who shall pay for
12such insurance;
13    (13) whether and to what extent bids with mortgage or other
14contingencies will be allowed;
15    (14) such other matters as approved by the court to ensure
16sale of the real estate for the most commercially favorable
17price for the type of real estate involved.
18    (g) Agreement of the Parties. If all of the parties agree
19in writing on the minimum price and that the real estate may be
20sold to the first person who offers in writing to purchase the
21real estate for such price, and on such other commercially
22reasonable terms and conditions as the parties may agree, then
23the court shall order the real estate to be sold on such terms,
24subject to confirmation of the sale in accordance with Section
2515-1508.
26    (h) Postponement of Proving Priority. With the approval of

 

 

09600SB3067sam001- 20 -LRB096 20207 AJO 43989 a

1the court prior to the entry of the judgment of foreclosure, a
2party claiming an interest in the proceeds of the sale of the
3mortgaged real estate may defer proving the priority of such
4interest until the hearing to confirm the sale.
5    (i) Effect of Judgment and Lien. (1) Upon the entry of the
6judgment of foreclosure, all rights of a party in the
7foreclosure against the mortgagor provided for in the judgment
8of foreclosure or this Article shall be secured by a lien on
9the mortgaged real estate, which lien shall have the same
10priority as the claim to which the judgment relates and shall
11be terminated upon confirmation of a judicial sale in
12accordance with this Article.
13    (2) Upon the entry of the judgment of foreclosure, the
14rights in the real estate subject to the judgment of
15foreclosure of (i) all persons made a party in the foreclosure
16and (ii) all nonrecord claimants given notice in accordance
17with paragraph (2) of subsection (c) of Section 15-1502, shall
18be solely as provided for in the judgment of foreclosure and in
19this Article.
20(Source: P.A. 85-907.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".