99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4595

 

Introduced , by Rep. Al Riley

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/15-1508  from Ch. 110, par. 15-1508

    Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that the provisions of a subsection concerning the federal Making Home Affordable program are operative and shall become inoperative on January 1, 2018 (instead of January 1, 2016) for all actions filed under the Article after December 31, 2017 (instead of December 31, 2015), in which the mortgagor did not apply for assistance under the Making Home Affordable Program on or before December 31, 2017 (instead of December 31, 2015). Provides that the changes apply to all cases pending and filed on or after the effective date. Effective immediately.


LRB099 19624 HEP 44021 b

 

 

A BILL FOR

 

HB4595LRB099 19624 HEP 44021 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 shall
13not be made prior to sale, the court shall conduct a hearing to
14confirm the sale. Unless the court finds that (i) a notice
15required in accordance with subsection (c) of Section 15-1507
16was not given, (ii) the terms of sale were unconscionable,
17(iii) the sale was conducted fraudulently, or (iv) justice was
18otherwise not done, the court shall then enter an order
19confirming the sale. The confirmation order shall include a
20name, address, and telephone number of the holder of the
21certificate of sale or deed issued pursuant to that certificate
22or, if no certificate or deed was issued, the purchaser, whom a
23municipality or county may contact with concerns about the real

 

 

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

 

 

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1items (1) through (3) of subsection (b) of this Section. The
2notice required under subsection (b-5) of this Section shall
3not be required.
4    (b-5) Notice with respect to residential real estate. With
5respect to residential real estate, the notice required under
6subsection (b) of this Section shall be sent to the mortgagor
7even if the mortgagor has previously been held in default. In
8the event the mortgagor has filed an appearance, the notice
9shall be sent to the address indicated on the appearance. In
10all other cases, the notice shall be sent to the mortgagor at
11the common address of the foreclosed property. The notice shall
12be sent by first class mail. Unless the right to possession has
13been previously terminated by the court, the notice shall
14include the following language in 12-point boldface
15capitalized type:
16
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
17
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
18
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
19
ILLINOIS MORTGAGE FORECLOSURE LAW.
20    (b-10) Notice of confirmation order sent to municipality or
21county. A copy of the confirmation order required under
22subsection (b) shall be sent to the municipality in which the
23foreclosed property is located, or to the county within the
24boundary of which the foreclosed property is located if the
25foreclosed property is located in an unincorporated territory.
26A municipality or county must clearly publish on its website a

 

 

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1single address to which a copy of the order shall be sent. If a
2municipality or county does not maintain a website, then the
3municipality or county must publicly post in its main office a
4single address to which a copy of the order shall be sent. In
5the event that a municipality or county has not complied with
6the publication requirement in this subsection (b-10), then a
7copy of the order shall be sent by first class mail, postage
8prepaid, to the chairperson of the county board or county clerk
9in the case of a county, to the mayor or city clerk in the case
10of a city, to the president of the board of trustees or village
11clerk in the case of a village, or to the president or town
12clerk in the case of a town.
13    (b-15) Notice of confirmation order sent to known insurers.
14With respect to residential real estate, the party filing the
15complaint shall send a copy of the confirmation order required
16under subsection (b) by first class mail, postage prepaid, to
17the last known property insurer of the foreclosed property.
18Failure to send or receive a copy of the order shall not impair
19or abrogate in any way the rights of the mortgagee or purchaser
20or affect the status of the foreclosure proceedings.
21    (c) Failure to Give Notice. If any sale is held without
22compliance with subsection (c) of Section 15-1507 of this
23Article, any party entitled to the notice provided for in
24paragraph (3) of that subsection (c) who was not so notified
25may, by motion supported by affidavit made prior to
26confirmation of such sale, ask the court which entered the

 

 

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1judgment to set aside the sale. Any such party shall guarantee
2or secure by bond a bid equal to the successful bid at the
3prior sale, unless the party seeking to set aside the sale is
4the mortgagor, the real estate sold at the sale is residential
5real estate, and the mortgagor occupies the residential real
6estate at the time the motion is filed. In that event, no
7guarantee or bond shall be required of the mortgagor. Any
8subsequent sale is subject to the same notice requirement as
9the original sale.
10    (d) Validity of Sale. Except as provided in subsection (c)
11of Section 15-1508, no sale under this Article shall be held
12invalid or be set aside because of any defect in the notice
13thereof or in the publication of the same, or in the
14proceedings of the officer conducting the sale, except upon
15good cause shown in a hearing pursuant to subsection (b) of
16Section 15-1508. At any time after a sale has occurred, any
17party entitled to notice under paragraph (3) of subsection (c)
18of Section 15-1507 may recover from the mortgagee any damages
19caused by the mortgagee's failure to comply with such paragraph
20(3). Any party who recovers damages in a judicial proceeding
21brought under this subsection may also recover from the
22mortgagee the reasonable expenses of litigation, including
23reasonable attorney's fees.
24    (d-5) Making Home Affordable Program. The court that
25entered the judgment shall set aside a sale held pursuant to
26Section 15-1507, upon motion of the mortgagor at any time prior

 

 

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1to the confirmation of the sale, if the mortgagor proves by a
2preponderance of the evidence that (i) the mortgagor has
3applied for assistance under the Making Home Affordable Program
4established by the United States Department of the Treasury
5pursuant to the Emergency Economic Stabilization Act of 2008,
6as amended by the American Recovery and Reinvestment Act of
72009, and (ii) the mortgaged real estate was sold in material
8violation of the program's requirements for proceeding to a
9judicial sale. The provisions of this subsection (d-5) are
10operative and, except for this sentence, shall become
11inoperative on January 1, 2018 January 1, 2016 for all actions
12filed under this Article after December 31, 2017 December 31,
132015, in which the mortgagor did not apply for assistance under
14the Making Home Affordable Program on or before December 31,
152017 December 31, 2015. The changes to this subsection (d-5) by
16this amendatory Act of the 99th General Assembly apply to all
17cases pending and filed on or after the effective date of this
18amendatory Act of the 99th General Assembly.
19    (e) Deficiency Judgment. In any order confirming a sale
20pursuant to the judgment of foreclosure, the court shall also
21enter a personal judgment for deficiency against any party (i)
22if otherwise authorized and (ii) to the extent requested in the
23complaint and proven upon presentation of the report of sale in
24accordance with Section 15-1508. Except as otherwise provided
25in this Article, a judgment may be entered for any balance of
26money that may be found due to the plaintiff, over and above

 

 

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1the proceeds of the sale or sales, and enforcement may be had
2for the collection of such balance, the same as when the
3judgment is solely for the payment of money. Such judgment may
4be entered, or enforcement had, only in cases where personal
5service has been had upon the persons personally liable for the
6mortgage indebtedness, unless they have entered their
7appearance in the foreclosure action.
8    (f) Satisfaction. Upon confirmation of the sale, the
9judgment stands satisfied to the extent of the sale price less
10expenses and costs. If the order confirming the sale includes a
11deficiency judgment, the judgment shall become a lien in the
12manner of any other judgment for the payment of money.
13    (g) The order confirming the sale shall include,
14notwithstanding any previous orders awarding possession during
15the pendency of the foreclosure, an award to the purchaser of
16possession of the mortgaged real estate, as of the date 30 days
17after the entry of the order, against the parties to the
18foreclosure whose interests have been terminated.
19    An order of possession authorizing the removal of a person
20from possession of the mortgaged real estate shall be entered
21and enforced only against those persons personally named as
22individuals in the complaint or the petition under subsection
23(h) of Section 15-1701. No order of possession issued under
24this Section shall be entered against a lessee with a bona fide
25lease of a dwelling unit in residential real estate in
26foreclosure, whether or not the lessee has been made a party in

 

 

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1the foreclosure. An order shall not be entered and enforced
2against any person who is only generically described as an
3unknown owner or nonrecord claimant or by another generic
4designation in the complaint.
5    Notwithstanding the preceding paragraph, the failure to
6personally name, include, or seek an award of possession of the
7mortgaged real estate against a person in the confirmation
8order shall not abrogate any right that the purchaser may have
9to possession of the mortgaged real estate and to maintain a
10proceeding against that person for possession under Article IX
11of this Code or, if applicable, under subsection (h) of Section
1215-1701; and possession against a person who (1) has not been
13personally named as a party to the foreclosure and (2) has not
14been provided an opportunity to be heard in the foreclosure
15proceeding may be sought only by maintaining a proceeding under
16Article IX of this Code or, if applicable, under subsection (h)
17of Section 15-1701.
18    (h) With respect to mortgaged real estate containing 5 or
19more dwelling units, the order confirming the sale shall also
20provide that (i) the mortgagor shall transfer to the purchaser
21the security deposits, if any, that the mortgagor received to
22secure payment of rent or to compensate for damage to the
23mortgaged real estate from any current occupant of a dwelling
24unit of the mortgaged real estate, as well as any statutory
25interest that has not been paid to the occupant, and (ii) the
26mortgagor shall provide an accounting of the security deposits

 

 

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1that are transferred, including the name and address of each
2occupant for whom the mortgagor holds the deposit and the
3amount of the deposit and any statutory interest.
4(Source: P.A. 97-333, eff. 8-12-11; 97-575, eff. 8-26-11;
597-1159, eff. 1-29-13; 97-1164, eff. 6-1-13; 98-514, eff.
611-19-13; 98-605, eff. 12-26-13.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.