Public Act 099-0024
 
SB0735 EnrolledLRB099 07334 HEP 27444 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Code of Civil Procedure is amended by
changing Section 15-1501 as follows:
 
    (735 ILCS 5/15-1501)  (from Ch. 110, par. 15-1501)
    Sec. 15-1501. Parties.
    (a) Necessary Parties. For the purposes of Section 2-405 of
the Code of Civil Procedure, only (i) the mortgagor and (ii)
other persons (but not guarantors) who owe payment of
indebtedness or the performance of other obligations secured by
the mortgage and against whom personal liability is asserted
shall be necessary parties defendant in a foreclosure. The
court may proceed to adjudicate their respective interests, but
any disposition of the mortgaged real estate shall be subject
to (i) the interests of all other persons not made a party or
(ii) interests in the mortgaged real estate not otherwise
barred or terminated in the foreclosure.
    (b) Permissible Parties. Any party may join as a party any
other person, although such person is not a necessary party,
including, without limitation, the following:
        (1) All persons having a possessory interest in the
    mortgaged real estate;
        (2) A mortgagor's spouse who has waived the right of
    homestead;
        (3) A trustee holding an interest in the mortgaged real
    estate or a beneficiary of such trust;
        (4) The owner or holder of a note secured by a trust
    deed;
        (5) Guarantors, provided that in a foreclosure any such
    guarantor also may be joined as a party in a separate count
    in an action on such guarantor's guaranty;
        (6) The State of Illinois or any political subdivision
    thereof, where a foreclosure involves real estate upon
    which the State or such subdivision has an interest or
    claim for lien, in which case "An Act in relation to
    immunity for the State of Illinois", approved December 10,
    1971, as amended, shall not be effective;
        (7) The United States of America or any agency or
    department thereof where a foreclosure involves real
    estate upon which the United States of America or such
    agency or department has an interest or a claim for lien;
        (8) Any assignee of leases or rents relating to the
    mortgaged real estate;
        (9) Any person who may have a lien under the Mechanic's
    Lien Act; and
        (10) Any other mortgagee or claimant.
    (c) Unknown Owners. Any unknown owner may be made a party
in accordance with Section 2-413 of the Code of Civil
Procedure.
    (d) Right to Become Party. Any person who has or claims an
interest in real estate which is the subject of a foreclosure
or an interest in any debt secured by the mortgage shall have
an unconditional right to appear and become a party in such
foreclosure in accordance with subsection (e) of Section
15-1501, provided, that neither such appearance by a lessee
whose interest in the real estate is subordinate to the
interest being foreclosed, nor the act of making such lessee a
party, shall result in the termination of the lessee's lease
unless the termination of the lease or lessee's interest in the
mortgaged real estate is specifically ordered by the court in
the judgment of foreclosure.
    (e) Time of Intervention.
        (1) Of Right. A person not a party, other than a
    nonrecord claimant given notice in accordance with
    paragraph (2) of subsection (c) of Section 15-1502, who has
    or claims an interest in the mortgaged real estate may
    appear and become a party at any time prior to the entry of
    judgment of foreclosure. A nonrecord claimant given such
    notice may appear and become a party at any time prior to
    the earlier of (i) the entry of a judgment of foreclosure
    or (ii) 30 days after such notice is given.
        (2) In Court's Discretion. After the right to intervene
    expires and prior to the sale in accordance with the
    judgment, the court may permit a person who has or claims
    an interest in the mortgaged real estate to appear and
    become a party on such terms as the court may deem just.
        (3) Later Right. After the sale of the mortgaged real
    estate in accordance with a judgment of foreclosure and
    prior to the entry of an order confirming the sale, a
    person who has or claims an interest in the mortgaged real
    estate, may appear and become a party, on such terms as the
    court may deem just, for the sole purpose of claiming an
    interest in the proceeds of sale. Any such party shall be
    deemed a party from the commencement of the foreclosure,
    and the interest of such party in the real estate shall be
    subject to all orders and judgments entered in the
    foreclosure.
        (4) Termination of Interest. Except as provided in
    Section 15-1501(d), the interest of any person who is
    allowed to appear and become a party shall be terminated,
    and the interest of such party in the real estate shall
    attach to the proceeds of sale.
    (f) Separate Actions. Any mortgagee or claimant, other than
the mortgagee who commences a foreclosure, whose interest in
the mortgaged real estate is recorded prior to the filing of a
notice of foreclosure in accordance with this Article but who
is not made a party to such foreclosure, shall not be barred
from filing a separate foreclosure (i) as an intervening
defendant or counterclaimant in accordance with subsections
(d) and (e) of Section 15-1501 if a judgment of foreclosure has
not been entered in the original foreclosure or (ii) in a new
foreclosure subsequent to the entry of a judgment of
foreclosure in the original foreclosure.
    (g) Service on the State of Illinois. When making the State
of Illinois a party to a foreclosure, summons may be served by
sending, by registered or certified mail, a copy of the summons
and the complaint to the Attorney General. The complaint shall
set forth with particularity the nature of the interest or lien
of the State of Illinois. If such interest or lien appears in a
recorded instrument, the complaint must state the document
number of the instrument and the office wherein it was
recorded.
    (h) Special Representatives. With respect to the property
that is the subject of the action, the The court is not
required to appoint a special representative for a deceased
mortgagor for the purpose of defending the action, if there is
a:
        (1) living person, persons, or entity that holds a 100%
    interest in the property that is the subject of the action,
    by virtue of being the deceased mortgagor's surviving joint
    tenant or surviving tenant by the entirety;
        (2) beneficiary under a transfer on death instrument
    executed by the deceased mortgagor prior to death;
        (3) person, persons, or entity that was conveyed title
    to the property by the deceased mortgagor prior to death;
        (4) person, persons, or entity that was conveyed title
    to the property from the deceased mortgagor's probate
    estate by the administrator or executor; or
        (5) trust that was conveyed title to the property by:
            (A) the deceased mortgagor prior to death; or
            (B) any other person, persons, or entity that is
        identified in this subsection (h) as being exempt from
        the requirement to appoint a special representative.
    In no event may a deficiency judgment be sought or entered
in the foreclosure case pursuant to subsection (e) of Section
15-1508 against a deceased mortgagor.
(Source: P.A. 98-514, eff. 11-19-13.)