SB0735 EngrossedLRB099 07334 HEP 27444 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 15-1501 as follows:
 
6    (735 ILCS 5/15-1501)  (from Ch. 110, par. 15-1501)
7    Sec. 15-1501. Parties.
8    (a) Necessary Parties. For the purposes of Section 2-405 of
9the Code of Civil Procedure, only (i) the mortgagor and (ii)
10other persons (but not guarantors) who owe payment of
11indebtedness or the performance of other obligations secured by
12the mortgage and against whom personal liability is asserted
13shall be necessary parties defendant in a foreclosure. The
14court may proceed to adjudicate their respective interests, but
15any disposition of the mortgaged real estate shall be subject
16to (i) the interests of all other persons not made a party or
17(ii) interests in the mortgaged real estate not otherwise
18barred or terminated in the foreclosure.
19    (b) Permissible Parties. Any party may join as a party any
20other person, although such person is not a necessary party,
21including, without limitation, the following:
22        (1) All persons having a possessory interest in the
23    mortgaged real estate;

 

 

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1        (2) A mortgagor's spouse who has waived the right of
2    homestead;
3        (3) A trustee holding an interest in the mortgaged real
4    estate or a beneficiary of such trust;
5        (4) The owner or holder of a note secured by a trust
6    deed;
7        (5) Guarantors, provided that in a foreclosure any such
8    guarantor also may be joined as a party in a separate count
9    in an action on such guarantor's guaranty;
10        (6) The State of Illinois or any political subdivision
11    thereof, where a foreclosure involves real estate upon
12    which the State or such subdivision has an interest or
13    claim for lien, in which case "An Act in relation to
14    immunity for the State of Illinois", approved December 10,
15    1971, as amended, shall not be effective;
16        (7) The United States of America or any agency or
17    department thereof where a foreclosure involves real
18    estate upon which the United States of America or such
19    agency or department has an interest or a claim for lien;
20        (8) Any assignee of leases or rents relating to the
21    mortgaged real estate;
22        (9) Any person who may have a lien under the Mechanic's
23    Lien Act; and
24        (10) Any other mortgagee or claimant.
25    (c) Unknown Owners. Any unknown owner may be made a party
26in accordance with Section 2-413 of the Code of Civil

 

 

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1Procedure.
2    (d) Right to Become Party. Any person who has or claims an
3interest in real estate which is the subject of a foreclosure
4or an interest in any debt secured by the mortgage shall have
5an unconditional right to appear and become a party in such
6foreclosure in accordance with subsection (e) of Section
715-1501, provided, that neither such appearance by a lessee
8whose interest in the real estate is subordinate to the
9interest being foreclosed, nor the act of making such lessee a
10party, shall result in the termination of the lessee's lease
11unless the termination of the lease or lessee's interest in the
12mortgaged real estate is specifically ordered by the court in
13the judgment of foreclosure.
14    (e) Time of Intervention.
15        (1) Of Right. A person not a party, other than a
16    nonrecord claimant given notice in accordance with
17    paragraph (2) of subsection (c) of Section 15-1502, who has
18    or claims an interest in the mortgaged real estate may
19    appear and become a party at any time prior to the entry of
20    judgment of foreclosure. A nonrecord claimant given such
21    notice may appear and become a party at any time prior to
22    the earlier of (i) the entry of a judgment of foreclosure
23    or (ii) 30 days after such notice is given.
24        (2) In Court's Discretion. After the right to intervene
25    expires and prior to the sale in accordance with the
26    judgment, the court may permit a person who has or claims

 

 

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1    an interest in the mortgaged real estate to appear and
2    become a party on such terms as the court may deem just.
3        (3) Later Right. After the sale of the mortgaged real
4    estate in accordance with a judgment of foreclosure and
5    prior to the entry of an order confirming the sale, a
6    person who has or claims an interest in the mortgaged real
7    estate, may appear and become a party, on such terms as the
8    court may deem just, for the sole purpose of claiming an
9    interest in the proceeds of sale. Any such party shall be
10    deemed a party from the commencement of the foreclosure,
11    and the interest of such party in the real estate shall be
12    subject to all orders and judgments entered in the
13    foreclosure.
14        (4) Termination of Interest. Except as provided in
15    Section 15-1501(d), the interest of any person who is
16    allowed to appear and become a party shall be terminated,
17    and the interest of such party in the real estate shall
18    attach to the proceeds of sale.
19    (f) Separate Actions. Any mortgagee or claimant, other than
20the mortgagee who commences a foreclosure, whose interest in
21the mortgaged real estate is recorded prior to the filing of a
22notice of foreclosure in accordance with this Article but who
23is not made a party to such foreclosure, shall not be barred
24from filing a separate foreclosure (i) as an intervening
25defendant or counterclaimant in accordance with subsections
26(d) and (e) of Section 15-1501 if a judgment of foreclosure has

 

 

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1not been entered in the original foreclosure or (ii) in a new
2foreclosure subsequent to the entry of a judgment of
3foreclosure in the original foreclosure.
4    (g) Service on the State of Illinois. When making the State
5of Illinois a party to a foreclosure, summons may be served by
6sending, by registered or certified mail, a copy of the summons
7and the complaint to the Attorney General. The complaint shall
8set forth with particularity the nature of the interest or lien
9of the State of Illinois. If such interest or lien appears in a
10recorded instrument, the complaint must state the document
11number of the instrument and the office wherein it was
12recorded.
13    (h) Special Representatives. With respect to the property
14that is the subject of the action, the The court is not
15required to appoint a special representative for a deceased
16mortgagor for the purpose of defending the action, if there is
17a:
18        (1) living person, persons, or entity that holds a 100%
19    interest in the property that is the subject of the action,
20    by virtue of being the deceased mortgagor's surviving joint
21    tenant or surviving tenant by the entirety;
22        (2) beneficiary under a transfer on death instrument
23    executed by the deceased mortgagor prior to death;
24        (3) person, persons, or entity that was conveyed title
25    to the property by the deceased mortgagor prior to death;
26        (4) person, persons, or entity that was conveyed title

 

 

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1    to the property from the deceased mortgagor's probate
2    estate by the administrator or executor; or
3        (5) trust that was conveyed title to the property by:
4            (A) the deceased mortgagor prior to death; or
5            (B) any other person, persons, or entity that is
6        identified in this subsection (h) as being exempt from
7        the requirement to appoint a special representative.
8    In no event may a deficiency judgment be sought or entered
9in the foreclosure case pursuant to subsection (e) of Section
1015-1508 against a deceased mortgagor.
11(Source: P.A. 98-514, eff. 11-19-13.)