Public Act 099-0439
Public Act 0439 99TH GENERAL ASSEMBLY
|Public Act 099-0439|
|SB1487 Enrolled||LRB099 09675 HEP 29884 b|
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Counties Code is amended by adding Section
3-5010.7 as follows:
(55 ILCS 5/3-5010.7 new)
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 also prohibit the owner of
the property from recording any document without judicial
approval except for court orders related to the foreclosure
case or court orders related to the property that were entered
after the effective date of the order prohibiting recordation.
The term "nonrecord claimant", for purposes of this Act, has
the meaning ascribed to that term in Section 15-1210 of the
Code of Civil Procedure. The order shall expire on the date of
the court order confirming the judicial sale of the property
pursuant to a judgment 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
(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. A mechanics lien claimant, unit of government, or
any duly appointed persons or entities acting as agents for a
unit of government or judicial body shall not be required to
obtain a certified court order in accordance with this
subsection in order to record a document on the property that
is the subject of a foreclosure action.
(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 confirming the sale must be
presented for inspection at the time of recordation of the deed
as evidence of the expiration of the order prohibiting
(g) This Section does not apply to a mortgagee or its agent
that recorded the lis pendens notice of foreclosure.
(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, the recorder shall notify in writing
the person recording the document, if possible, and if after 30
days' notice or 30 days after the recording when the recorder
is unable to notify the filer and that person fails to obtain
the certified order required under subsection (d), the recorder
shall then record a new document clearly referencing the
document number of the erroneous recording and indicating that
it has been voided. If feasible, the recorder shall watermark
the erroneous recording as voided using the word "voided".
(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.
Effective Date: 1/1/2016