SB1487 99TH GENERAL ASSEMBLY

LRB099 09675 HEP 29884 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1487

Introduced 2/20/2015, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

55 ILCS 5/3-5010.7 new

Amends the Counties Code. Provides that the recorder of deeds in a county with a population of more than 3,000,000 shall establish a pilot program that permits documents to be recorded against a property in foreclosure by judicial order only. Provides that the pilot program shall last from January 1, 2016 to January 1, 2019. Adds provisions concerning: the procedures for limiting the recording of documents; erroneous recording of documents; immunity of the recorder; and premature termination of the pilot program. Repeals the new provisions on January 1, 2019.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Counties Code is amended by adding Section 3-5010.7 as follows:

(55 ILCS 5/3-5010.7 new)

Sec. 3-5010.7. Foreclosure property pilot program.

(a) The recorder in a county with a population of more than 3,000,000 shall establish a pilot program that permits documents to be recorded against a property in foreclosure by judicial order only.

(b) Beginning January 1, 2016, upon motion by the plaintiff in a foreclosure action, the judge shall issue an order barring any nonrecord claimants from recording,without approval of the court, an interest on the property that is the subject of the foreclosure action. The order shall expire 2 years after the date of recordation of the notice of foreclosure unless renewed by order of the judge.

(c) Upon inspecting the order and making a determination that the order is valid and prevents any nonrecord claimants from recording an interest on the property without court approval, the recorder shall record the court's order as a separate document in the chain of title, after the notice of foreclosure. It is the responsibility of the plaintiff to attach any necessary exhibits to fulfill statutory recording requirements. The recorder may charge the standard and applicable recording fees at the time the order is presented for recording.

(d) If a court order has been recorded under this Section, a nonrecord claimant shall not record a document regarding the property that is the subject of the foreclosure action without a certified court order. A nonrecord claimant shall obtain a certified court order by filing a motion in the office of the clerk of the court in which the action is pending. The court shall then issue a dated certified order indicating the type of document to be recorded, the person or entity authorized to record, the property index number of the property, and the case number of the foreclosure. The order must be presented in person to designated staff in the recorder's office along with the document to be recorded. The recorder shall not accept recordings subject to this Section by mail or electronic submission.

(e) The recorder is authorized to inspect the photo identification of any person attempting to record a document on a title that is subject to a court order under this Section and may deny recordation to any person who refuses to provide proper photo identification.

(f) Once the foreclosure is finalized and a new deed is issued, an official court order must accompany the deed at the time of recordation.

(g) This Section does not apply to a bank or financial institution that recorded the lis pendens notice of foreclosure. If the initial foreclosure is found to be in error, or the wrong institution files the foreclosure, then the filing institution shall file an affidavit rescinding the freeze on title and shall be liable for a $10,000 penalty, payable to the owner against which the foreclosure was filed.

(h) If a document is recorded contrary to a court's order and the recorder determines that the recorder's office is responsible for the error, then the recorder shall record a new document clearly referencing the document number of the erroneous recording, indicating that it is invalid. If feasible, the recorder may watermark the erroneous recording as invalid.

(i) Except in cases of willful or wanton misconduct, the recorder, or any agent or employee of the recorder, is immune from any liability under this Section.

(j) The program implemented under this amendatory Act of the 99th General Assembly shall be considered a pilot program from January 1, 2016 to January 1, 2019. The recorder may end the pilot program earlier than January 1, 2019 by sending a certified letter to the Chief Judge of the county if the recorder determines that either workforce challenges or computer hardware or software limitations have prevented the effective implementation and operation of the program. The recorder shall enforce in good faith any frozen title requests initiated prior to cancelling the pilot program.

(k) This Section is repealed on January 1, 2019.