State of Illinois
92nd General Assembly

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 1        AN ACT concerning mortgages.

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

 4        Section 5.  The Code of Civil  Procedure  is  amended  by
 5    changing  Section  15-1403  and  adding  Section  15-1406  as
 6    follows:

 7        (735 ILCS 5/15-1403) (from Ch. 110, par. 15-1403)
 8        Sec.  15-1403.  Common Law Strict Foreclosure.  Except as
 9    otherwise  provided  in  Section  15-1406,  nothing  in  this
10    Article shall affect the right of a  mortgagee  to  foreclose
11    its  mortgage  by  a  common  law  strict  foreclosure  as in
12    existence in Illinois on the effective date of this Article.
13    (Source: P.A. 84-1462.)

14        (735 ILCS 5/15-1406 new)
15        Sec. 15-1406. Loss of employment.
16        (a)  In this Section:
17        "Single family residence" means a house, condominium,  or
18    other  mortgaged premises located in Illinois and occupied by
19    a mortgagor or mortgagors (or by a  mortgagor  or  mortgagors
20    and  members  of  the  mortgagor  or mortgagors' family) as a
21    residence for that individual or family only and not for  any
22    commercial purpose.
23        (b)  If   a   mortgagor  of  a  single  family  residence
24    experiences a  temporary  or  permanent  loss  of  employment
25    because  of  a  layoff, lockout, or strike and the employment
26    had been the primary source  of  income  of  the  mortgagor's
27    household,  the  mortgagor  may notify the mortgagee of those
28    facts. Within 14 days after receiving such a  notice  from  a
29    mortgagor,  the  mortgagee may send a notice to the mortgagor
30    requiring the  mortgagor  to  supply  verification  of  those
                            -2-                LRB9204986WHcs
 1    facts,  in which case the mortgagor shall send or cause to be
 2    sent to the mortgagee verification of those facts  within  14
 3    days after receiving the notice from the mortgagee.
 4        (c)  After the mortgagee receives the notice of temporary
 5    or  permanent  loss  of  employment  from the mortgagor under
 6    subsection  (b)  and   any   verification   requested   under
 7    subsection  (b),  the  mortgagee  may  not  initiate  (or, if
 8    already initiated, proceed with) any action to  foreclose  on
 9    the  mortgage  (either  under  this  Article or by common law
10    strict foreclosure or any other method) and may not  initiate
11    (or,  if already initiated, proceed with) any other action to
12    declare a default or terminate the  ownership  or  possessory
13    interest  of the mortgagor or mortgagors in the single family
14    residence during the time period applicable under  subsection
15    (d)   if   the   mortgagor  or  mortgagors  comply  with  the
16    requirements of subsection (d).
17        (d)  After experiencing a  loss  of  employment,  sending
18    notice   to   the  mortgagee,  and  supplying  any  requested
19    verification to the mortgagee, all as provided in  subsection
20    (b),  the mortgagor or mortgagors shall make monthly payments
21    to the mortgagee that do not include  payments  on  principal
22    but  are  sufficient  to  pay the interest accrued during the
23    month (and replenish the escrow account if  necessary).  When
24    the  mortgagor again becomes employed or one year has elapsed
25    since  the  mortgagor  or  mortgagors  began  making  monthly
26    payments of interest  and  escrow  in  accordance  with  this
27    subsection  (d),  whichever  is  earlier,  the  mortgagor  or
28    mortgagors shall resume regular monthly payments of principal
29    and interest and shall remit additional monthly sums in equal
30    monthly amounts that will pay in full, over a 6 month period,
31    all  principal that was unpaid during the loss of employment.
32    If the mortgagor or mortgagors comply with  the  requirements
33    of  this    Section, any purported default resulting from the
34    failure of the  mortgagor or mortgagors to pay the  principal
                            -3-                LRB9204986WHcs
 1    in a timely manner during  the period described in subsection
 2    (d)  shall  be  deemed to be cured and  the mortgagee may not
 3    take any action the mortgagor or mortgagors based    on  that
 4    purported  default.  If  the  mortgagor or mortgagors fail to
 5    comply with any of the  requirements  of  this  Section,  the
 6    protections  set  forth in this Section shall no longer apply
 7    to the mortgagor or mortgagors.
 8        (e)  Upon the motion of a mortgagor, a court  shall  stay
 9    any  action  of  a  type  described  in subsection (c) if the
10    action was filed on  or  after  the  date  the  mortgagor  or
11    mortgagors sent their initial notice under subsection (b). If
12    the  mortgagor  or mortgagors comply with the requirements of
13    this Section, the court shall dismiss the  action  after  the
14    mortgagor  or  mortgagors  complete  their payments of unpaid
15    principal  under  subsection  (d).  If   the   mortgagor   or
16    mortgagors  fail  to  comply  with any of the requirements of
17    this Section, the stay shall be vacated upon  the  motion  of
18    the mortgagee.
19        (f)  A   mortgagor  or  mortgagors  who  have  previously
20    availed themselves of  the  protections  set  forth  in  this
21    Section  may  not again avail themselves of those protections
22    unless they complied with this Section when  they  previously
23    availed themselves of those protections and at least one year
24    has elapsed since the mortgagor or mortgagors completed their
25    payments of unpaid principal under subsection (d).
26        (g)  This  Section applies only to mortgages entered into
27    on or after the effective date of this amendatory Act of  the
28    92nd General Assembly.

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