Bill Text: IL SB0016 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Housing Development Act to authorize the Illinois Housing Authority to establish and administer a foreclosure prevention counseling program using moneys in the Foreclosure Prevention Counseling Fund, appropriated for that purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home ownership education and foreclosure prevention counseling. Amends the State Finance Act to create the Foreclosure Prevention Counseling Fund. Provides that 75% of the moneys in this Fund shall be used for housing counseling outside Chicago and 25% of the moneys shall be used for such counseling in Chicago. Effective immediately.

Spectrum: Partisan Bill (Democrat 37-1)

Status: (Passed) 2013-02-08 - Public Act . . . . . . . . . 97-1164 [SB0016 Detail]

Download: Illinois-2011-SB0016-Amended.html

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Rep. Karen A. Yarbrough

Filed: 5/26/2011

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AMENDMENT TO SENATE BILL 16
AMENDMENT NO. ______. Amend Senate Bill 16 by replacing
everything after the enacting clause with the following:
Section 5. The Illinois Municipal Code is amended by
changing Sections 11-20-15 and 11-20-15.1 and by adding Section
11-20-17 as follows:
(65 ILCS 5/11-20-15)
Sec. 11-20-15. Lien for removal costs.
(a) If the municipality incurs a removal cost under Section
11-20-7, 11-20-8, 11-20-12, or 11-20-13, or 11-20-17 with
respect to any underlying parcel, then that cost is a lien upon
that underlying parcel. This lien is superior to all other
liens and encumbrances, except tax liens and as otherwise
provided in subsection (c) of this Section.
(b) To perfect a lien under this Section, the municipality
must, within one year after the removal cost is incurred, file

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notice of lien in the office of the recorder in the county in
which the underlying parcel is located or, if the underlying
parcel is registered under the Torrens system, in the office of
the Registrar of Titles of that county. The notice must consist
of a sworn statement setting out:
(1) a description of the underlying parcel that
sufficiently identifies the parcel;
(2) the amount of the removal cost; and
(3) the date or dates when the removal cost was
incurred by the municipality.
If, for any one parcel, the municipality engaged in any
removal activity on more than one occasion during the course of
one year, then the municipality may combine any or all of the
costs of each of those activities into a single notice of lien.
(c) A lien under this Section is not valid as to: (i) any
purchaser whose rights in and to the underlying parcel arose
after the removal activity but before the filing of the notice
of lien; or (ii) any mortgagee, judgment creditor, or other
lienor whose rights in and to the underlying parcel arose
before the filing of the notice of lien.
(d) The removal cost is not a lien on the underlying parcel
unless a notice is personally served on, or sent by certified
mail to, the person to whom was sent the tax bill for the
general taxes on the property for the taxable year immediately
preceding the removal activities. The notice must be delivered
or sent after the removal activities have been performed, and

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it must: (i) state the substance of this Section and the
substance of any ordinance of the municipality implementing
this Section; (ii) identify the underlying parcel, by common
description; and (iii) describe the removal activity.
(e) A lien under this Section may be enforced by
proceedings to foreclose as in the case of mortgages or
mechanics' liens. An action to foreclose a lien under this
Section must be commenced within 2 years after the date of
filing notice of lien.
(f) Any person who performs a removal activity by the
authority of the municipality may, in his or her own name, file
a lien and foreclose on that lien in the same manner as a
municipality under this Section.
(g) A failure to file a foreclosure action does not, in any
way, affect the validity of the lien against the underlying
parcel.
(h) Upon payment of the lien cost by the owner of the
underlying parcel after notice of lien has been filed, the
municipality (or its agent under subsection (f)) shall release
the lien, and the release may be filed of record by the owner
at his or her sole expense as in the case of filing notice of
lien.
(i) For the purposes of this Section:
"Lien cost" means the removal cost and the filing costs for
any notice of lien under subsection (b).
"Removal activity" means any activity for which a removal

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cost was incurred.
"Removal cost" means a removal cost as defined under
Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13, or 11-20-17.
"Underlying parcel" means a parcel of private property upon
which a removal activity was performed.
"Year" means a 365-day period.
(j) This Section applies only to liens filed after August
14, 2009 (the effective date of Public Act 96-462).
(k) This Section shall not apply to a lien filed pursuant
to Section 11-20-15.1.
(Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10;
96-1000, eff. 7-2-10.)
(65 ILCS 5/11-20-15.1)
Sec. 11-20-15.1. Lien for costs of removal, securing, and
enclosing on abandoned residential property.
(a) If the municipality elects to incur a removal cost
pursuant to subsection (d) of Section 11-20-7, subsection (d)
of Section 11-20-8, subsection (d) of Section 11-20-12, or
subsection (e) of Section 11-20-13, or subsection (i) of
Section 11-20-17, or a securing or enclosing cost pursuant to
Section 11-31-1.01 with respect to an abandoned residential
property, then that cost is a lien upon the underlying parcel
of that abandoned residential property. This lien is superior
to all other liens and encumbrances, except tax liens and as
otherwise provided in this Section.

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(b) To perfect a lien under this Section, the municipality
must, within one year after the cost is incurred for the
activity, file notice of the lien in the office of the recorder
in the county in which the abandoned residential property is
located or, if the abandoned residential property is registered
under the Torrens system, in the office of the Registrar of
Titles of that county, a sworn statement setting out:
(1) a description of the abandoned residential
property that sufficiently identifies the parcel;
(2) the amount of the cost of the activity;
(3) the date or dates when the cost for the activity
was incurred by the municipality; and
(4) a statement that the lien has been filed pursuant
to subsection (d) of Section 11-20-7, subsection (d) of
Section 11-20-8, subsection (d) of Section 11-20-12,
subsection (e) of Section 11-20-13, subsection (i) of
Section 11-20-17, or Section 11-31-1.01, as applicable.
If, for any abandoned residential property, the
municipality engaged in any activity on more than one occasion
during the course of one year, then the municipality may
combine any or all of the costs of each of those activities
into a single notice of lien. In order for a municipality to
perfect a lien for costs pursuant to Section 11-20-17 of this
Act, the municipality must first investigate and determine
that, pursuant to subsections (c) and (h) of this Section, the
underlying parcel is vacant and abandoned residential

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property.
(c) To enforce a lien pursuant to this Section, the
municipality must maintain contemporaneous records that
include, at a minimum: (i) a dated statement of finding by the
municipality that the property for which the work is to be
performed has become abandoned residential property, which
shall include (1) the date when the property was first known or
observed to be unoccupied by any lawful occupant or occupants,
(2) a description of the actions taken by the municipality to
contact the legal owner or owners of the property identified on
the recorded mortgage, or, if known, any agent of the owner or
owners, including the dates such actions were taken, and (3) a
statement that no contacts were made with the legal owner or
owners or their agents as a result of such actions, (ii) a
dated certification by an authorized official of the
municipality of the necessity and specific nature of the work
to be performed, (iii) a copy of the agreement with the person
or entity performing the work that includes the legal name of
the person or entity, the rate or rates to be charged for
performing the work, and an estimate of the total cost of the
work to be performed, (iv) detailed invoices and payment
vouchers for all payments made by the municipality for such
work, and (v) a statement as to whether the work was engaged
through a competitive bidding process, and if so, a copy of all
proposals submitted by the bidders for such work.
(d) A lien under this Section shall be enforceable

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exclusively at the hearing for confirmation of sale of the
abandoned residential property that is held pursuant to
subsection (b) of Section 15-1508 of the Code of Civil
Procedure and shall be limited to a claim of interest in the
proceeds of the sale and subject to the requirements of this
Section. Any mortgagee who holds a mortgage on the property, or
any beneficiary or trustee who holds a deed of trust on the
property, may contest the lien or the amount of the lien at any
time during the foreclosure proceeding upon motion and notice
in accordance with court rules applicable to motions generally.
Grounds for forfeiture of the lien or the superior status of
the lien granted by subsection (a) of this Section shall
include, but not be limited to, a finding by the court that:
(i) the municipality has not complied with subsection (b) or
(c) of this Section, (ii) the scope of the work was not
reasonable under the circumstances, (iii) the work exceeded the
authorization for the work to be performed under subsection (a)
of Section 11-20-7, subsection (a) of Section 11-20-8,
subsection (a) of Section 11-20-12, subsection (a) of Section
11-20-13, or subsection (a) of Section 11-31-1.01, as
applicable, or (iv) the cost of the services rendered or
materials provided was not commercially reasonable. Forfeiture
of the superior status of the lien otherwise granted by this
Section shall not constitute a forfeiture of the lien as a
subordinate lien.
(e) Upon payment of the amount of a lien filed under this

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Section by the mortgagee, servicer, owner, or any other person,
the municipality shall release the lien, and the release may be
filed of record by the person making such payment at the
person's sole expense as in the case of filing notice of lien.
(f) Notwithstanding any other provision of this Section, a
municipality may not file a lien pursuant to this Section for
activities performed pursuant to Section 11-20-7, Section
11-20-8, Section 11-20-12, Section 11-20-13, or Section
11-31-1.01, if: (i) the mortgagee or servicer of the abandoned
residential property has provided notice to the municipality
that the mortgagee or servicer has performed or will perform
the remedial actions specified in the notice that the
municipality otherwise might perform pursuant to subsection
(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
subsection (d) of Section 11-20-12, subsection (e) of Section
11-20-13, or Section 11-31-1.01, provided that the remedial
actions specified in the notice have been performed or are
performed or initiated in good faith within 30 days of such
notice; or (ii) the municipality has provided notice to the
mortgagee or servicer of a problem with the property requiring
the remedial actions specified in the notice that the
municipality otherwise would perform pursuant to subsection
(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
subsection (d) of Section 11-20-12, subsection (e) of Section
11-20-13, or Section 11-31-1.01, and the mortgagee or servicer
has performed or performs or initiates in good faith the

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remedial actions specified in the notice within 30 days of such
notice.
(g) This Section and subsection (d) of Section 11-20-7,
subsection (d) of Section 11-20-8, subsection (d) of Section
11-20-12, subsection (e) of Section 11-20-13, or Section
11-31-1.01 shall apply only to activities performed, costs
incurred, and liens filed after the effective date of this
amendatory Act of the 96th General Assembly. Subsection (i) of
Section 11-20-17 shall apply only to activities performed,
costs incurred, and liens filed after the effective date of
this amendatory Act of the 97th General Assembly.
(h) For the purposes of this Section and subsection (d) of
Section 11-20-7, subsection (d) of Section 11-20-8, subsection
(d) of Section 11-20-12, subsection (e) of Section 11-20-13,
subsection (i) of Section 11-20-17, or Section 11-31-1.01:
"Abandoned residential property" means any type of
permanent residential dwelling unit, including detached single
family structures, and townhouses, condominium units and
multifamily rental apartments covering the entire property,
and manufactured homes treated under Illinois law as real
estate and not as personal property, that has been unoccupied
by any lawful occupant or occupants for at least 90 days, and
for which after such 90 day period, the municipality has made
good faith efforts to contact the legal owner or owners of the
property identified on the recorded mortgage, or, if known, any
agent of the owner or owners, and no contact has been made. A

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property for which the municipality has been given notice of
the order of confirmation of sale pursuant to subsection (b-10)
of Section 15-1508 of the Code of Civil Procedure shall not be
deemed to be an abandoned residential property for the purposes
of subsection (d) of Section 11-20-7, subsection (d) of Section
11-20-8, subsection (d) of Section 11-20-12, subsection (e) of
Section 11-20-13, subsection (i) of Section 11-20-17, and
Section 11-31-1.01 of this Code.
"MERS program" means the nationwide Mortgage Electronic
Registration System approved by Fannie Mae, Freddie Mac, and
Ginnie Mae that has been created by the mortgage banking
industry with the mission of registering every mortgage loan in
the United States to lawfully make information concerning each
residential mortgage loan and the property securing it
available by Internet access to mortgage originators,
servicers, warehouse lenders, wholesale lenders, retail
lenders, document custodians, settlement agents, title
companies, insurers, investors, county recorders, units of
local government, and consumers.
(i) Any entity or person who performs a removal, securing,
or enclosing activity pursuant to the authority of a
municipality under subsection (d) of Section 11-20-7,
subsection (d) of Section 11-20-8, subsection (d) of Section
11-20-12, subsection (e) of Section 11-20-13, or Section
11-31-1.01, may, in its, his, or her own name, file a lien
pursuant to subsection (b) of this Section and appear in a

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foreclosure action on that lien pursuant to subsection (d) of
this Section in the place of the municipality, provided that
the municipality shall remain subject to subsection (c) of this
Section, and such party shall be subject to all of the
provisions in this Section as if such party were the
municipality.
(i-5) All amounts received by the municipality for costs
incurred pursuant to this Section for which the municipality
has been reimbursed under Section 7.31 of the Illinois Housing
Development Act shall be remitted to the State Treasurer for
deposit into the Abandoned Residential Property Municipality
Relief Fund.
(j) If prior to subsection (d) of Section 11-20-7,
subsection (d) of Section 11-20-8, subsection (d) of Section
11-20-12, and subsection (e) of Section 11-20-13 becoming
inoperative a lien is filed pursuant to any of those
subsections, then the lien shall remain in full force and
effect after the subsections have become inoperative, subject
to all of the provisions of this Section. If prior to the
repeal of Section 11-31-1.01 a lien is filed pursuant to
Section 11-31-1.01, then the lien shall remain in full force
and effect after the repeal of Section 11-31-1.01, subject to
all of the provisions of this Section.
(Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)
(65 ILCS 5/11-20-17 new)

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Sec. 11-20-17. Vacant property.
(a) For the purposes of minimizing the hazards to persons
and property resulting from vacant property, the corporate
authorities of each municipality may, by ordinance, prescribe
rules or regulations for the maintenance and security of vacant
property. The corporate authorities of a municipality may
impose registration fees for vacant property and fines for
failure to comply with ordinances enacted pursuant to this
Section. The corporate authority of a municipality that enacts
an ordinance pursuant to this Section shall transmit a copy of
that ordinance to the Illinois Housing Development Authority
within 30 days of the ordinance's enactment. The Illinois
Housing Development Authority shall post a copy of the
ordinance on its website within 30 days of receipt.
(b) Pursuant to those ordinances, the corporate
authorities of each municipality, upon directing a notice of
its determination and finding that the underlying parcel is
vacant and abandoned residential property by regular or
certified mail, may hold responsible for maintaining and
securing a vacant property (i) any owner of the property, (ii)
any previous owner of the property who conveyed the property
during the time it was vacant and failed to comply with any
ordinance regarding the registration of vacant property, (iii)
any trust beneficiary or other trustee who holds a deed of
trust on the property, (iv) any mortgagee who holds a mortgage
on the property, and (v) any assignee of an owner, beneficiary,

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trustee, or mortgagee.
(c) Upon delivery of the notice provided in subsection (b),
a beneficiary, trustee, or mortgagee seeking to comply with
ordinances regarding the maintenance or security of vacant
property may enter that property to remedy any potential
violation of an ordinance to maintain or secure vacant property
without an order for possession under the Illinois Mortgage
Foreclosure Act, provided that entry is not barred by an
automatic stay issued by a bankruptcy court.
(d) Beneficiaries, trustees, mortgagees, and their agents
and assignees shall be held harmless from and against all
claims of negligence, civil trespass, and criminal trespass in
connection with compliance activity under the ordinances for
the maintenance or security of vacant property, provided that
the person authorizing or engaging in the compliance activity
has (i) made a good faith effort to identify any owner and
occupant of the property and (ii) made a good faith effort to
contact any owner and occupant in a manner reasonably
calculated to give the owner and occupant notice that the
compliance activity is imminent, after the notice provided by
subsection (b) has been delivered.
(e) For the purpose of this Section, "owner" means the
legal or beneficial owner of an improved or unimproved parcel
of real estate.
(f) For the purpose of this Section, "mortgagee" means (i)
the holder of an indebtedness, the obligee of a non-monetary

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obligation secured by a mortgage, any assignee of the mortgage,
or any person designated or authorized to act on behalf of such
holder, (ii) any person or entity who previously initiated a
foreclosure of the vacant property or obtained a foreclosure
judgment against the vacant property if the deed to vacant
property has not been transferred to the purchaser at the
judicial sale, and (iii) any person claiming through a
mortgagee as successor.
(g) For the purpose of this Section, "vacant property"
means any property having complete or incomplete structures
that are empty or otherwise uninhabited by persons legally
entitled to inhabit the structures.
(h) For the purpose of this Section, "removal cost" means
the total value of fees and fines imposed pursuant to rules,
regulations, or ordinances regarding maintenance, security, or
demolition of vacant property.
(i) To enforce fees and fines pursuant to this Section, a
municipality has the following options: (i) the municipality
may elect to obtain a lien upon the underlying property for the
removal cost in accordance with Section 11-20-15; (ii) in the
case of an abandoned residential property as defined in Section
11-20-15.1, the municipality may elect to obtain a lien for the
removal cost pursuant to Section 11-20-15.1, in which case the
provisions of Section 11-20-15.1 shall be the exclusive remedy
for the removal cost; or (iii) the municipality may elect to
obtain a lien for the removal cost by exercising any

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enforcement actions available under its police powers or other
statutory grant of authority.
(j) Nothing in this Section prohibits a municipality from
obtaining and enforcing liens pursuant to any other local,
State, or federal law.
(k) No municipality may enact or enforce an ordinance
adopted under this Section on or after January 1, 2019. Nothing
in this subsection (k) affects the power of a municipality to
enact or continue to enforce, pursuant to the municipality's
home rule powers or pursuant to any other law other than this
Section, any ordinance that regulates the maintenance and
security of vacant property.
Section 10. The Code of Civil Procedure is amended by
changing Sections 15-1506, 15-1508, and 15-1603 as follows:
(735 ILCS 5/15-1506) (from Ch. 110, par. 15-1506)
Sec. 15-1506. Judgment. (a) Evidence. In the trial of a
foreclosure, the evidence to support the allegations of the
complaint shall be taken in open court, except:
(1) where an allegation of fact in the complaint is not
denied by a party's verified answer or verified counterclaim,
or where a party pursuant to subsection (b) of Section 2-610 of
the Code of Civil Procedure states, or is deemed to have
stated, in its pleading that it has no knowledge of such
allegation sufficient to form a belief and attaches the

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required affidavit, a sworn verification of the complaint or a
separate affidavit setting forth such fact is sufficient
evidence thereof against such party and no further evidence of
such fact shall be required; and
(2) where all the allegations of fact in the complaint have
been proved by verification of the complaint or affidavit, the
court upon motion supported by an affidavit stating the amount
which is due the mortgagee, shall enter a judgment of
foreclosure as requested in the complaint.
(b) Instruments. In all cases the evidence of the
indebtedness and the mortgage foreclosed shall be exhibited to
the court and appropriately marked, and copies thereof shall be
filed with the court.
(c) Summary and Default Judgments. Nothing in this Section
15-1506 shall prevent a party from obtaining a summary or
default judgment authorized by Article II of the Code of Civil
Procedure. If the mortgagee files a motion to shorten the
redemption period pursuant to Section 2-1603(b)(4) of this
Article on or before the date of filing a motion for entry of a
default judgment, the motions shall be set before the court
within 30 days of the filing of the motion for default, unless
the motion brought under Section 2-1603(b)(4) has already been
heard and denied by the court.
(d) Notice of Entry of Default. When any judgment in a
foreclosure is entered by default, notice of such judgment
shall be given in accordance with Section 2-1302 of the Code of

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Civil Procedure.
(e) Matters Required in Judgment. A judgment of foreclosure
shall include the last date for redemption and all rulings of
the court entered with respect to each request for relief set
forth in the complaint. The omission of the date for redemption
shall not extend the time for redemption or impair the validity
of the judgment.
(f) Special Matters in Judgment. Without limiting the
general authority and powers of the court, special matters may
be included in the judgment of foreclosure if sought by a party
in the complaint or by separate motion. Such matters may
include, without limitation:
(1) a manner of sale other than public auction;
(2) a sale by sealed bid;
(3) an official or other person who shall be the officer to
conduct the sale other than the one customarily designated by
the court;
(4) provisions for non-exclusive broker listings or
designating a duly licensed real estate broker nominated by one
of the parties to exclusively list the real estate for sale;
(5) the fees or commissions to be paid out of the sale
proceeds to the listing or other duly licensed broker, if any,
who shall have procured the accepted bid;
(6) the fees to be paid out of the sale proceeds to an
auctioneer, if any, who shall have been authorized to conduct a
public auction sale;

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(7) whether and in what manner and with what content signs
shall be posted on the real estate;
(8) a particular time and place at which such bids shall be
received;
(9) a particular newspaper or newspapers in which notice of
sale shall be published;
(10) the format for the advertising of such sale, including
the size, content and format of such advertising, and
additional advertising of such sale;
(11) matters or exceptions to which title in the real
estate may be subject at the sale;
(12) a requirement that title insurance in a specified form
be provided to a purchaser at the sale, and who shall pay for
such insurance;
(13) whether and to what extent bids with mortgage or other
contingencies will be allowed;
(14) such other matters as approved by the court to ensure
sale of the real estate for the most commercially favorable
price for the type of real estate involved.
(g) Agreement of the Parties. If all of the parties agree
in writing on the minimum price and that the real estate may be
sold to the first person who offers in writing to purchase the
real estate for such price, and on such other commercially
reasonable terms and conditions as the parties may agree, then
the court shall order the real estate to be sold on such terms,
subject to confirmation of the sale in accordance with Section

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15-1508.
(h) Postponement of Proving Priority. With the approval of
the court prior to the entry of the judgment of foreclosure, a
party claiming an interest in the proceeds of the sale of the
mortgaged real estate may defer proving the priority of such
interest until the hearing to confirm the sale.
(i) Effect of Judgment and Lien. (1) Upon the entry of the
judgment of foreclosure, all rights of a party in the
foreclosure against the mortgagor provided for in the judgment
of foreclosure or this Article shall be secured by a lien on
the mortgaged real estate, which lien shall have the same
priority as the claim to which the judgment relates and shall
be terminated upon confirmation of a judicial sale in
accordance with this Article.
(2) Upon the entry of the judgment of foreclosure, the
rights in the real estate subject to the judgment of
foreclosure of (i) all persons made a party in the foreclosure
and (ii) all nonrecord claimants given notice in accordance
with paragraph (2) of subsection (c) of Section 15-1502, shall
be solely as provided for in the judgment of foreclosure and in
this Article.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508)
Sec. 15-1508. Report of Sale and Confirmation of Sale.
(a) Report. The person conducting the sale shall promptly

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make a report to the court, which report shall include a copy
of all receipts and, if any, certificate of sale.
(b) Hearing. Upon motion and notice in accordance with
court rules applicable to motions generally, which motion shall
not be made prior to sale, the court shall conduct a hearing to
confirm the sale. Unless the court finds that (i) a notice
required in accordance with subsection (c) of Section 15-1507
was not given, (ii) the terms of sale were unconscionable,
(iii) the sale was conducted fraudulently, or (iv) that justice
was otherwise not done, the court shall then enter an order
confirming the sale. The confirmation order shall include a
name, address, and telephone number of the holder of the
certificate of sale or deed issued pursuant to that certificate
or, if no certificate or deed was issued, the purchaser, whom a
municipality or county may contact with concerns about the real
estate. The confirmation order may also:
(1) approve the mortgagee's fees and costs arising
between the entry of the judgment of foreclosure and the
confirmation hearing, those costs and fees to be allowable
to the same extent as provided in the note and mortgage and
in Section 15-1504;
(2) provide for a personal judgment against any party
for a deficiency; and
(3) determine the priority of the judgments of parties
who deferred proving the priority pursuant to subsection
(h) of Section 15-1506, but the court shall not defer

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confirming the sale pending the determination of such
priority.
(b-5) Notice with respect to residential real estate. With
respect to residential real estate, the notice required under
subsection (b) of this Section shall be sent to the mortgagor
even if the mortgagor has previously been held in default. In
the event the mortgagor has filed an appearance, the notice
shall be sent to the address indicated on the appearance. In
all other cases, the notice shall be sent to the mortgagor at
the common address of the foreclosed property. The notice shall
be sent by first class mail. Unless the right to possession has
been previously terminated by the court, the notice shall
include the following language in 12-point boldface
capitalized type:
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
ILLINOIS MORTGAGE FORECLOSURE LAW.
(b-10) Notice of confirmation order sent to municipality or
county. A copy of the confirmation order required under
subsection (b) shall be sent to the municipality in which the
foreclosed property is located, or to the county within the
boundary of which the foreclosed property is located if the
foreclosed property is located in an unincorporated territory.
A municipality or county must clearly publish on its website a
single address to which such notice shall be sent. If a

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municipality or county does not maintain a website, then the
municipality or county must publicly post in its main office a
single address to which such notice shall be sent. In the event
that a municipality or county has not complied with the
publication requirement in this subsection (b-10), then such
notice to the municipality or county shall be provided pursuant
to Section 2-211 of the Code of Civil Procedure.
(c) Failure to Give Notice. If any sale is held without
compliance with subsection (c) of Section 15-1507 of this
Article, any party entitled to the notice provided for in
paragraph (3) of that subsection (c) who was not so notified
may, by motion supported by affidavit made prior to
confirmation of such sale, ask the court which entered the
judgment to set aside the sale. Any such party shall guarantee
or secure by bond a bid equal to the successful bid at the
prior sale, unless the party seeking to set aside the sale is
the mortgagor, the real estate sold at the sale is residential
real estate, and the mortgagor occupies the residential real
estate at the time the motion is filed. In that event, no
guarantee or bond shall be required of the mortgagor. Any
subsequent sale is subject to the same notice requirement as
the original sale.
(d) Validity of Sale. Except as provided in subsection (c)
of Section 15-1508, no sale under this Article shall be held
invalid or be set aside because of any defect in the notice
thereof or in the publication of the same, or in the

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proceedings of the officer conducting the sale, except upon
good cause shown in a hearing pursuant to subsection (b) of
Section 15-1508. At any time after a sale has occurred, any
party entitled to notice under paragraph (3) of subsection (c)
of Section 15-1507 may recover from the mortgagee any damages
caused by the mortgagee's failure to comply with such paragraph
(3). Any party who recovers damages in a judicial proceeding
brought under this subsection may also recover from the
mortgagee the reasonable expenses of litigation, including
reasonable attorney's fees.
(d-5) Making Home Affordable Program. The court that
entered the judgment shall set aside a sale held pursuant to
Section 15-1507, upon motion of the mortgagor at any time prior
to the confirmation of the sale, if the mortgagor proves by a
preponderance of the evidence that (i) the mortgagor has
applied for assistance under the Making Home Affordable Program
established by the United States Department of the Treasury
pursuant to the Emergency Economic Stabilization Act of 2008,
as amended by the American Recovery and Reinvestment Act of
2009, and (ii) the mortgaged real estate was sold in material
violation of the program's requirements for proceeding to a
judicial sale. The provisions of this subsection (d-5), except
for this sentence, shall become inoperative on January 1, 2013
for all actions filed under this Article after December 31,
2012, in which the mortgagor did not apply for assistance under
the Making Home Affordable Program on or before December 31,

09700SB0016ham002 - 24 - LRB097 06631 HLH 56350 a
2012.
(e) Deficiency Judgment. In any order confirming a sale
pursuant to the judgment of foreclosure, the court shall also
enter a personal judgment for deficiency against any party (i)
if otherwise authorized and (ii) to the extent requested in the
complaint and proven upon presentation of the report of sale in
accordance with Section 15-1508. Except as otherwise provided
in this Article, a judgment may be entered for any balance of
money that may be found due to the plaintiff, over and above
the proceeds of the sale or sales, and enforcement may be had
for the collection of such balance, the same as when the
judgment is solely for the payment of money. Such judgment may
be entered, or enforcement had, only in cases where personal
service has been had upon the persons personally liable for the
mortgage indebtedness, unless they have entered their
appearance in the foreclosure action.
(f) Satisfaction. Upon confirmation of the sale, the
judgment stands satisfied to the extent of the sale price less
expenses and costs. If the order confirming the sale includes a
deficiency judgment, the judgment shall become a lien in the
manner of any other judgment for the payment of money.
(g) The order confirming the sale shall include,
notwithstanding any previous orders awarding possession during
the pendency of the foreclosure, an award to the purchaser of
possession of the mortgaged real estate, as of the date 30 days
after the entry of the order, against the parties to the

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foreclosure whose interests have been terminated. If the court
has determined that the property is abandoned pursuant to item
(4) of subsection (b) of Section 2-1603 and the parties whose
interests have been terminated have not appeared at the hearing
to confirm the sale, the purchaser shall be awarded possession
of the mortgaged real estate immediately.
An order of possession authorizing the removal of a person
from possession of the mortgaged real estate shall be entered
and enforced only against those persons personally named as
individuals in the complaint or the petition under subsection
(h) of Section 15-1701 and in the order of possession and shall
not be entered and enforced against any person who is only
generically described as an unknown owner or nonrecord claimant
or by another generic designation in the complaint.
Notwithstanding the preceding paragraph, the failure to
personally name, include, or seek an award of possession of the
mortgaged real estate against a person in the confirmation
order shall not abrogate any right that the purchaser may have
to possession of the mortgaged real estate and to maintain a
proceeding against that person for possession under Article 9
of this Code or subsection (h) of Section 15-1701; and
possession against a person who (1) has not been personally
named as a party to the foreclosure and (2) has not been
provided an opportunity to be heard in the foreclosure
proceeding may be sought only by maintaining a proceeding under
Article 9 of this Code or subsection (h) of Section 15-1701.

09700SB0016ham002 - 26 - LRB097 06631 HLH 56350 a
(Source: P.A. 95-826, eff. 8-14-08; 96-265, eff. 8-11-09;
96-856, eff. 3-1-10; 96-1245, eff. 7-23-10; revised 9-16-10.)
(735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
Sec. 15-1603. Redemption.
(a) Owner of Redemption. Except as provided in subsection
(b) of Section 15-1402, only an owner of redemption may redeem
from the foreclosure, and such owner of redemption may redeem
only during the redemption period specified in subsection (b)
of Section 15-1603 and only if the right of redemption has not
been validly waived.
(b) Redemption Period.
(1) In the foreclosure of a mortgage of real estate
which is residential real estate at the time the
foreclosure is commenced, the redemption period shall end
on the later of (i) the date 7 months from the date the
mortgagor or, if more than one, all the mortgagors (A) have
been served with summons or by publication or (B) have
otherwise submitted to the jurisdiction of the court, or
(ii) the date 3 months from the date of entry of a judgment
of foreclosure.
(2) In all other foreclosures, the redemption period
shall end on the later of (i) the date 6 months from the
date the mortgagor or, if more than one, all the mortgagors
(A) have been served with summons or by publication or (B)
have otherwise submitted to the jurisdiction of the court,

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or (ii) the date 3 months from the date of entry of a
judgment of foreclosure.
(3) Notwithstanding paragraphs (1) and (2), the
redemption period shall end at the later of the expiration
of any reinstatement period provided for in Section 15-1602
or the date 60 days after the date the judgment of
foreclosure is entered, if the court finds that (i) the
value of the mortgaged real estate as of the date of the
judgment is less than 90% of the amount specified pursuant
to subsection (d) of Section 15-1603 and (ii) the mortgagee
waives any and all rights to a personal judgment for a
deficiency against the mortgagor and against all other
persons liable for the indebtedness or other obligations
secured by the mortgage.
(4) Notwithstanding paragraphs (1) and (2), the
redemption period shall end on the date 30 days after the
date the judgment of foreclosure is entered if, upon motion
and notice in accordance with court rules applicable to
motions generally, the court finds that the mortgaged real
estate has been abandoned. In cases where the redemption
period is shortened on account of abandonment, the
reinstatement period shall not extend beyond the
redemption period as shortened.
(A) The court may find that the mortgaged real
estate is abandoned if the mortgagee proves, by a
preponderance of the evidence, that the mortgaged real

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estate has been abandoned. To determine that the
property has been abandoned, the court must find the
following:
(i) the mortgaged property is not actually
occupied; and
(ii) at least one of the following applies:
(aa) more than 5 attempts to contact the
mortgagor have been made, at least one by
certified mail and one by telephone, if there
is a working telephone number for the
mortgagor; and at least 2 of the following
supporting facts are true:
(I) construction was initiated on the
property and was discontinued prior to
completion, leaving the building
unsuitable for occupancy, and no
construction has taken place for at least 6
months;
(II) the property has had more than
one uncorrected municipal code violation
over the past year, or has been declared
unfit for occupancy and ordered to remain
vacant and unoccupied by the municipal
authorities;
(III) gas, electric, or water service
to the entire premises has been terminated

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or is threatened with termination;
(IV) windows or entrances to the
premises are boarded up or closed off, or
multiple window panes are broken and
unrepaired;
(V) doors to the premises are smashed
through, broken off, unhinged, or
continuously unlocked;
(VI) the police or sheriff's office
has received at least 2 reports of
trespassers on the premises or of
vandalism or other illegal acts being
committed on the premises in the past 6
months;
(bb) 2 or more attempts to contact the
mortgagor have been made and there exist
written statements of the mortgagor, the
mortgagor's personal representatives or
assigns, including documents of conveyance,
which indicate a clear intent to abandon the
premises; or
(cc) 2 or more attempts to contact the
mortgagor have been made and the property is a
vacant lot.
(B) Notwithstanding the provisions of this
subsection, if an appearance by the mortgagor or other

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occupant is made at or before the hearing on a motion
brought pursuant to this subsection, the mortgaged
real estate shall not be deemed abandoned and the court
shall deny the motion to shorten the redemption period.
(c) Extension of Redemption Period.
(1) Once expired, the right of redemption provided for
in Sections 15-1603 or 15-1604 shall not be revived. The
period within which the right of redemption provided for in
Sections 15-1603 or 15-1604 may be exercised runs
independently of any action by any person to enforce the
judgment of foreclosure or effect a sale pursuant thereto.
Neither the initiation of any legal proceeding nor the
order of any court staying the enforcement of a judgment of
foreclosure or the sale pursuant to a judgment or the
confirmation of the sale, shall have the effect of tolling
the running of the redemption period.
(2) If a court has the authority to stay, and does
stay, the running of the redemption period, or if the
redemption period is extended by any statute of the United
States, the redemption period shall be extended until the
expiration of the same number of days after the expiration
of the stay order as the number of days remaining in the
redemption period at the time the stay order became
effective, or, if later, until the expiration of 30 days
after the stay order terminates. If the stay order
terminates more than 30 days prior to the expiration of the

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redemption period, the redemption period shall not be
extended.
(d) Amount Required to Redeem. The amount required to
redeem shall be the sum of:
(1) The amount specified in the judgment of
foreclosure, which shall consist of (i) all principal and
accrued interest secured by the mortgage and due as of the
date of the judgment, (ii) all costs allowed by law, (iii)
costs and expenses approved by the court, (iv) to the
extent provided for in the mortgage and approved by the
court, additional costs, expenses and reasonable
attorneys' fees incurred by the mortgagee, (v) all amounts
paid pursuant to Section 15-1505 and (vi) per diem interest
from the date of judgment to the date of redemption
calculated at the mortgage rate of interest applicable as
if no default had occurred; and
(2) The amount of other expenses authorized by the
court which the mortgagee reasonably incurs between the
date of judgment and the date of redemption, which shall be
the amount certified by the mortgagee in accordance with
subsection (e) of Section 15-1603.
(e) Notice of Intent to Redeem. An owner of redemption who
intends to redeem shall give written notice of such intent to
redeem to the mortgagee's attorney of record specifying the
date designated for redemption and the current address of the
owner of redemption for purposes of receiving notice. Such

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owner of redemption shall file with the clerk of the court a
certification of the giving of such notice. The notice of
intent to redeem must be received by the mortgagee's attorney
at least 15 days (other than Saturday, Sunday or court holiday)
prior to the date designated for redemption. The mortgagee
shall thereupon file with the clerk of the court and shall give
written notice to the owner of redemption at least three days
(other than Saturday, Sunday or court holiday) before the date
designated for redemption a certification, accompanied by
copies of paid receipts or appropriate affidavits, of any
expenses authorized in paragraph (2) of subsection (d) of
Section 15-1603. If the mortgagee fails to serve such
certification within the time specified herein, then the owner
of redemption intending to redeem may redeem on the date
designated for redemption in the notice of intent to redeem,
and the mortgagee shall not be entitled to payment of any
expenses authorized in paragraph (2) of subsection (d) of
Section 15-1603.
(f) Procedure for Redemption.
(1) An owner of redemption may redeem the real estate
from the foreclosure by paying the amount specified in
subsection (d) of Section 15-1603 to the mortgagee or the
mortgagee's attorney of record on or before the date
designated for redemption pursuant to subsection (e) of
Section 15-1603.
(2) If the mortgagee refuses to accept payment or if

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the owner of redemption redeeming from the foreclosure
objects to the reasonableness of the additional expenses
authorized in paragraph (2) of subsection (d) of Section
15-1603 and certified in accordance with subsection (e) of
Section 15-1603, the owner of redemption shall pay the
certified amount to the clerk of the court on or before the
date designated for redemption, together with a written
statement specifying the expenses to which objection is
made. In such case the clerk shall pay to the mortgagee the
amount tendered minus the amount to which the objection
pertains.
(3) Upon payment to the clerk, whether or not the owner
of redemption files an objection at the time of payment,
the clerk shall give a receipt of payment to the person
redeeming from the foreclosure, and shall file a copy of
that receipt in the foreclosure record. Upon receipt of the
amounts specified to be paid to the mortgagee pursuant to
this Section, the mortgagee shall promptly furnish the
mortgagor with a release of the mortgage or satisfaction of
the judgment, as appropriate, and the evidence of all
indebtedness secured by the mortgage shall be cancelled.
(g) Procedure Upon Objection. If an objection is filed by
an owner of redemption in accordance with paragraph (2) of
subsection (f) of Section 15-1603, the clerk shall hold the
amount to which the objection pertains until the court orders
distribution of those funds. The court shall hold a hearing

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promptly to determine the distribution of any funds held by the
clerk pursuant to such objection. Each party shall pay its own
costs and expenses in connection with any objection, including
attorneys' fees, subject to Section 2-611 of the Code of Civil
Procedure.
(h) Failure to Redeem. Unless the real estate being
foreclosed is redeemed from the foreclosure, it shall be sold
as provided in this Article.
(i) Mortgagees electing to release, discharge, or abandon
their mortgage interest in any property shall execute a binding
written release declaring their discharge of the related lien
and shall, within 30 days, record the release as provided in
Section 28 of the Conveyances Act. The failure to record a
written release creates a presumption that the mortgagee of
record, or any of its, his, or her successors in interest, has
knowingly interfered, delayed, and prevented the enforcement
of any municipal ordinance concerning property.
(Source: P.A. 86-974.)
Section 99. Effective date. This Act takes effect upon
becoming law.".