Bill Text: IL SB1728 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Code of Civil Procedure. Provides that a Section concerning homeowner protections is repealed on January 1, 2014 (instead of July 1, 2013). Adds a new Section concerning homeowner protection which becomes operative on January 1, 2014 and contains substantially the same provisions of the former Section, with additions and deletions. Defines terms. Provides that the notice provided to certain mortgagors in default must contain language advising the mortgagor that a list of approved housing counselors can be found on the website of the Illinois Foreclosure Prevention Network. Adds requirements concerning: foreclosure prevention alternative applications; documents relative to foreclosure proceedings; proceedings in foreclosure actions; and private rights of action. Provides that the Section concerning homeowner protection applies only to residential real estate with no more than 4 dwelling units that is occupied as a principal residence by the mortgagor and that its provisions are severable. Provides that the Department of Financial and Professional Regulation may adopt rules to implement the Section. Provides that for certain types of properties, a mortgage foreclosure complaint must contain statements as to what sustainable loan workout plans or foreclosure prevention alternatives have or will be attempted. Amends the Conveyances Act. In provisions concerning the effect of recording deeds, mortgages, and other instruments, makes the following changes: provides that those provisions also apply to the recording of assignments, mortgage releases, mortgage modifications, land equity loans, liens, lis pendens, and memoranda of judgment; changes the scope to instruments that affect interests in real property; and provides that deeds and title papers are void until recorded (instead of void until recorded as to creditors and subsequent purchasers) with the recorder's office in the county in which the property is located. Effective immediately, except that the new homeowner protection provisions take effect January 1, 2014.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB1728 Detail]

Download: Illinois-2013-SB1728-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1728 Introduced 2/15/2013, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED:
735 ILCS 5/15-1502.5
735 ILCS 5/15-1502.6 new
735 ILCS 5/15-1504 from Ch. 110, par. 15-1504
735 ILCS 5/15-1507 from Ch. 110, par. 15-1507
765 ILCS 5/28 from Ch. 30, par. 27
765 ILCS 5/30 from Ch. 30, par. 29
Amends the Code of Civil Procedure. Provides that a Section concerning homeowner protections is repealed on January 1, 2014 (instead of July 1, 2013). Adds a new Section concerning homeowner protection which becomes operative on January 1, 2014 and contains substantially the same provisions of the former Section, with additions and deletions. Defines terms. Provides that the notice provided to certain mortgagors in default must contain language advising the mortgagor that a list of approved housing counselors can be found on the website of the Illinois Foreclosure Prevention Network. Adds requirements concerning: foreclosure prevention alternative applications; documents relative to foreclosure proceedings; proceedings in foreclosure actions; and private rights of action. Provides that the Section concerning homeowner protection applies only to residential real estate with no more than 4 dwelling units that is occupied as a principal residence by the mortgagor and that its provisions are severable. Provides that the Department of Financial and Professional Regulation may adopt rules to implement the Section. Provides that for certain types of properties, a mortgage foreclosure complaint must contain statements as to what sustainable loan workout plans or foreclosure prevention alternatives have or will be attempted. Amends the Conveyances Act. In provisions concerning the effect of recording deeds, mortgages, and other instruments, makes the following changes: provides that those provisions also apply to the recording of assignments, mortgage releases, mortgage modifications, land equity loans, liens, lis pendens, and memoranda of judgment; changes the scope to instruments that affect interests in real property; and provides that deeds and title papers are void until recorded (instead of void until recorded as to creditors and subsequent purchasers) with the recorder's office in the county in which the property is located. Effective immediately, except that the new homeowner protection provisions take effect January 1, 2014.
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A BILL FOR
SB1728 LRB098 09930 HEP 40088 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 Sections 15-1502.5, 15-1504, and 15-1507 and by adding
Section 15-1502.6 as follows:
(735 ILCS 5/15-1502.5)
(Section scheduled to be repealed on July 1, 2013)
Sec. 15-1502.5. Homeowner protection.
(a) As used in this Section:
"Approved counseling agency" means a housing counseling
agency approved by the U.S. Department of Housing and Urban
Development.
"Approved Housing Counseling" means in-person counseling
provided by a counselor employed by an approved counseling
agency to all borrowers, or documented telephone counseling
where a hardship would be imposed on one or more borrowers. A
hardship shall exist in instances in which the borrower is
confined to his or her home due to medical conditions, as
verified in writing by a physician or the borrower resides 50
miles or more from the nearest approved counseling agency. In
instances of telephone counseling, the borrower must supply all
necessary documents to the counselor at least 72 hours prior to

SB1728 - 2 - LRB098 09930 HEP 40088 b
the scheduled telephone counseling session.
"Delinquent" means past due with respect to a payment on a
mortgage secured by residential real estate.
"Department" means the Department of Financial and
Professional Regulation.
"Secretary" means the Secretary of Financial and
Professional Regulation or other person authorized to act in
the Secretary's stead.
"Sustainable loan workout plan" means a plan that the
mortgagor and approved counseling agency believe shall enable
the mortgagor to stay current on his or her mortgage payments
for the foreseeable future when taking into account the
mortgagor income and existing and foreseeable debts. A
sustainable loan workout plan may include, but is not limited
to, (1) a temporary suspension of payments, (2) a lengthened
loan term, (3) a lowered or frozen interest rate, (4) a
principal write down, (5) a repayment plan to pay the existing
loan in full, (6) deferred payments, or (7) refinancing into a
new affordable loan.
(b) Except in the circumstance in which a mortgagor has
filed a petition for relief under the United States Bankruptcy
Code, no mortgagee shall file a complaint to foreclose a
mortgage secured by residential real estate until the
requirements of this Section have been satisfied.
(c) Notwithstanding any other provision to the contrary,
with respect to a particular mortgage secured by residential

SB1728 - 3 - LRB098 09930 HEP 40088 b
real estate, the procedures and forbearances described in this
Section apply only once per subject mortgage.
Except for mortgages secured by residential real estate in
which any mortgagor has filed for relief under the United
States Bankruptcy Code, if a mortgage secured by residential
real estate becomes delinquent by more than 30 days the
mortgagee shall send via U.S. mail a notice advising the
mortgagor that he or she may wish to seek approved housing
counseling. Notwithstanding anything to the contrary in this
Section, nothing shall preclude the mortgagor and mortgagee
from communicating with each other during the initial 30 days
of delinquency or reaching agreement on a sustainable loan
workout plan, or both.
No foreclosure action under Part 15 of Article XV of the
Code of Civil Procedure shall be instituted on a mortgage
secured by residential real estate before mailing the notice
described in this subsection (c).
The notice required in this subsection (c) shall state the
date on which the notice was mailed, shall be headed in bold
14-point type "GRACE PERIOD NOTICE", and shall state the
following in 14-point type: "YOUR LOAN IS MORE THAN 30 DAYS
PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY
BE IN YOUR BEST INTEREST TO SEEK APPROVED HOUSING COUNSELING.
YOU HAVE A GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS NOTICE
TO OBTAIN APPROVED HOUSING COUNSELING. DURING THE GRACE PERIOD,
THE LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU.

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YOU MAY BE ENTITLED TO AN ADDITIONAL 30 DAY GRACE PERIOD IF YOU
OBTAIN HOUSING COUNSELING FROM AN APPROVED HOUSING COUNSELING
AGENCY. A LIST OF APPROVED COUNSELING AGENCIES MAY BE OBTAINED
FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL
REGULATION."
The notice shall also list the Department's current
consumer hotline, the Department's website, and the telephone
number, fax number, and mailing address of the mortgagee. No
language, other than language substantially similar to the
language prescribed in this subsection (c), shall be included
in the notice. Notwithstanding any other provision to the
contrary, the grace period notice required by this subsection
(c) may be combined with a counseling notification required
under federal law.
The sending of the notice required under this subsection
(c) means depositing or causing to be deposited into the United
States mail an envelope with first-class postage prepaid that
contains the document to be delivered. The envelope shall be
addressed to the mortgagor at the common address of the
residential real estate securing the mortgage.
(d) Until 30 days after mailing the notice provided for
under subsection (c) of this Section, no legal action shall be
instituted under Part 15 of Article XV of the Code of Civil
Procedure.
(e) If, within the 30-day period provided under subsection
(d) of this Section, an approved counseling agency provides

SB1728 - 5 - LRB098 09930 HEP 40088 b
written notice to the mortgagee that the mortgagor is seeking
approved counseling services, then no legal action under Part
15 of Article XV of the Code of Civil Procedure shall be
instituted for 30 days after the date of that notice. The date
that such notice is sent shall be stated in the notice, and
shall be sent to the address or fax number contained in the
Grace Period Notice required under subsection (c) of this
Section. During the 30-day period provided under this
subsection (e), the mortgagor or counselor or both may prepare
and proffer to the mortgagee a proposed sustainable loan
workout plan. The mortgagee will then determine whether to
accept the proposed sustainable loan workout plan. If the
mortgagee and the mortgagor agree to a sustainable loan workout
plan, then no legal action under Part 15 of Article XV of the
Code of Civil Procedure shall be instituted for as long as the
sustainable loan workout plan is complied with by the
mortgagor.
The agreed sustainable loan workout plan and any
modifications thereto must be in writing and signed by the
mortgagee and the mortgagor.
Upon written notice to the mortgagee, the mortgagor may
change approved counseling agencies, but such a change does not
entitle the mortgagor to any additional period of forbearance.
(f) If the mortgagor fails to comply with the sustainable
loan workout plan, then nothing in this Section shall be
construed to impair the legal rights of the mortgagee to

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enforce the contract.
(g) A counselor employed by a housing counseling agency or
the housing counseling agency that in good faith provides
counseling shall not be liable to a mortgagee or mortgagor for
civil damages, except for willful or wanton misconduct on the
part of the counselor in providing the counseling.
(h) There shall be no waiver of any provision of this
Section.
(i) It is the General Assembly's intent that compliance
with this Section shall not prejudice a mortgagee in ratings of
its bad debt collection or calculation standards or policies.
(j) This Section shall not apply, or shall cease to apply,
to residential real estate that is not occupied as a principal
residence by the mortgagor.
(k) This Section is repealed January 1, 2014 July 1, 2013.
(Source: P.A. 95-1047, eff. 4-6-09; 96-1419, eff. 10-1-10.)
(735 ILCS 5/15-1502.6 new)
Sec. 15-1502.6. Homeowner protection.
(a) As used in this Section:
"Approved counseling agency" means a housing counseling
agency approved by the U.S. Department of Housing and Urban
Development.
"Approved Housing Counseling" means in-person counseling
provided by a counselor employed by an approved counseling
agency to all borrowers, or documented telephone counseling

SB1728 - 7 - LRB098 09930 HEP 40088 b
where meeting in person would cause a hardship to be imposed on
one or more borrowers. A hardship shall exist in instances in
which the borrower is confined to his or her home due to
medical conditions, as verified in writing by a physician, or
the borrower resides 50 miles or more from the nearest approved
counseling agency. In instances of telephone counseling, the
borrower must supply all necessary documents to the counselor
at least 72 hours prior to the scheduled telephone counseling
session.
"Delinquent" means past due with respect to a payment on a
mortgage secured by residential real estate.
"Department" means the Department of Financial and
Professional Regulation.
"First lien" means the most senior mortgage or deed of
trust on the property that is the subject of the notice of
foreclosure or notice of sale.
"Foreclosure prevention alternative" means a first lien
loan modification or another available loss mitigation option,
including but not limited to a: (1) short sale; (2) short
refinance; (3) deed in lieu of foreclosure; (4) cash-for-keys
negotiation; or (5) special forbearance.
"Secretary" means the Secretary of Financial and
Professional Regulation or other person authorized to act in
the Secretary's stead.
"Sustainable loan workout plan" means a plan that the
mortgagor and approved counseling agency believe shall enable

SB1728 - 8 - LRB098 09930 HEP 40088 b
the mortgagor to stay current on his or her mortgage payments
for the foreseeable future when taking into account the
mortgagor's income and existing and foreseeable debts. A
sustainable loan workout plan may include, but is not limited
to, (1) a temporary suspension of payments, (2) a lengthened
loan term, (3) a lowered or frozen interest rate, (4) a
principal write down, (5) a repayment plan to pay the existing
loan in full, (6) deferred payments, or (7) refinancing into a
new affordable loan.
"Written notice", "written acknowledgment", or "written
offer" means depositing or causing to be deposited into the
United States mail an envelope, with first-class postage
prepaid, that contains the document to be delivered. The
envelope shall be addressed to the mortgagor at the common
address of the residential real estate securing the mortgage.
The date of written notice, written acknowledgment, or written
offer shall be the same as the day it is mailed.
(b) Except in the circumstance in which a mortgagor has
filed a petition for relief under the United States Bankruptcy
Code, no mortgagee shall file a complaint to foreclose a
mortgage secured by residential real estate until the
requirements of this Section have been satisfied.
(c) Notwithstanding any other provision to the contrary,
with respect to a particular mortgage secured by residential
real estate, the procedures and forbearances described in this
Section apply only once per subject mortgage.

SB1728 - 9 - LRB098 09930 HEP 40088 b
If a mortgage secured by residential real estate becomes
delinquent by more than 30 days, the mortgagee shall send
written notice advising the mortgagor that he or she may wish
to seek approved housing counseling. Notwithstanding anything
to the contrary in this Section, nothing shall preclude the
mortgagor and mortgagee from communicating with each other
during the initial 30 days of delinquency or reaching agreement
on a sustainable loan workout plan, or both.
No foreclosure action under Part 15 of Article XV of the
Code of Civil Procedure shall be instituted on a mortgage
secured by residential real estate before mailing the notice
described in this subsection (c).
The notice required in this subsection (c) shall state the
date on which the notice was mailed, shall be headed in bold
14-point type "GRACE PERIOD NOTICE", and shall state the
following in 14-point type: "YOUR LOAN IS MORE THAN 30 DAYS
PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY
BE IN YOUR BEST INTEREST TO SEEK APPROVED HOUSING COUNSELING.
YOU HAVE A GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS NOTICE
TO OBTAIN APPROVED HOUSING COUNSELING. DURING THE GRACE PERIOD,
THE LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU.
YOU MAY BE ENTITLED TO AN ADDITIONAL 30 DAY GRACE PERIOD IF YOU
OBTAIN HOUSING COUNSELING FROM AN APPROVED HOUSING COUNSELING
AGENCY. A LIST OF APPROVED COUNSELING AGENCIES MAY BE OBTAINED
FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL
REGULATION OR THE ILLINOIS FORECLOSURE PREVENTION NETWORK

SB1728 - 10 - LRB098 09930 HEP 40088 b
WEBSITE, HTTP://KEEPYOURHOMEILLINOIS.ORG."
The notice shall also list the Department's current
consumer hotline, the Department's website, and the telephone
number, fax number, and mailing address of the mortgagee. No
language, other than language substantially similar to the
language prescribed in this subsection (c), shall be included
in the notice. Notwithstanding any other provision to the
contrary, the grace period notice required by this subsection
(c) may be combined with a counseling notification required
under federal law.
(d) Until 30 days after mailing the notice provided for
under subsection (c) of this Section, no legal action shall be
instituted under Part 15 of Article XV of the Code of Civil
Procedure.
(e) If, within the 30-day period provided under subsection
(d) of this Section, an approved counseling agency provides
written notice to the mortgagee that the mortgagor is seeking
approved counseling services, then no legal action under Part
15 of Article XV of the Code of Civil Procedure shall be
instituted for 30 days after the date of that notice. The date
that such notice is sent shall be stated in the notice, and
shall be sent to the address or fax number contained in the
Grace Period Notice required under subsection (c) of this
Section. During the 30-day period provided under this
subsection (e), the mortgagor or counselor or both may prepare
and proffer to the mortgagee a proposed sustainable loan

SB1728 - 11 - LRB098 09930 HEP 40088 b
workout plan. The mortgagee shall then determine whether to
accept the proposed sustainable loan workout plan. If the
mortgagee and the mortgagor agree to a sustainable loan workout
plan, then no legal action under Part 15 of Article XV of the
Code of Civil Procedure shall be instituted for as long as the
sustainable loan workout plan is complied with by the
mortgagor.
The agreed sustainable loan workout plan and any
modifications thereto must be in writing and signed by the
mortgagee and the mortgagor.
Upon written notice to the mortgagee, the mortgagor may
change approved counseling agencies, but such a change does not
entitle the mortgagor to any additional period of forbearance.
(f) If the mortgagor fails to comply with the sustainable
loan workout plan, then nothing in this Section shall be
construed to impair the legal rights of the mortgagee to
enforce the contract.
(g) A counselor employed by a housing counseling agency or
the housing counseling agency that in good faith provides
counseling shall not be liable to a mortgagee or mortgagor for
civil damages, except for willful or wanton misconduct on the
part of the counselor in providing the counseling.
(h) There shall be no waiver of any provision of this
Section.
(i) It is the General Assembly's intent that compliance
with this Section shall not prejudice a mortgagee in ratings of

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its bad debt collection or calculation standards or policies.
(j) With respect to foreclosure prevention alternative
applications, the following apply:
(1) When a mortgagor submits a complete foreclosure
prevention alternative application, or any document in
connection with a foreclosure prevention alternative
application, the mortgagee shall provide written
acknowledgment of the receipt of the documentation within 5
business days of receipt.
(2) For purposes of this Section, an application is
complete when a mortgagor has supplied the mortgagee with
all documents required by the mortgagee within the
reasonable timeframe specified by the mortgage servicer.
(3) The mortgagee may not charge an application,
processing, or other fee in connection with a foreclosure
prevention alternative application.
(4) The mortgagee may not collect any late fees for
periods during which a foreclosure prevention alternative
is under consideration or a denial is being appealed.
(5) In its initial written acknowledgment of receipt of
the complete loan modification application, or any
document in connection with a foreclosure prevention
alternative application, the mortgagee shall include the
following information:
(i) a description of the foreclosure prevention
alternative evaluation process, including an estimate

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of when a decision on the foreclosure prevention
alternative will be made after a complete application
has been submitted by the mortgagor and the length of
time the mortgagor will have to consider an offer of a
foreclosure prevention alternative;
(ii) any deadlines, including deadlines to submit
missing documentation, that would affect the
processing of a foreclosure prevention alternative
application;
(iii) any expiration dates for submitted
documents; and
(iv) any deficiency in the mortgagor's first lien
loan modification application or an acknowledgment of
receipt of a complete foreclosure prevention
alternative application or both.
(6) A mortgagee shall have no more than 30 days after
receipt of a complete foreclosure prevention alternative
application to provide the mortgagor with a written
acceptance or denial of the complete foreclosure
prevention alternative application, or, if applicable, to
provide the mortgagor with a written acceptance or denial
of an appeal.
(7) When a mortgagor accepts an offered foreclosure
prevention alternative, the mortgagee shall provide the
mortgagor with a copy of the fully executed foreclosure
prevention alternative agreement within 7 days following

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receipt of the executed copy from the mortgagor.
(8) If a mortgagor submits a complete application for a
foreclosure prevention alternative offered by or through
the mortgagor's mortgage servicer, a mortgage servicer,
trustee, beneficiary, or authorized agent may not file a
foreclosure complaint, seek a foreclosure judgment, or
conduct or seek to confirm a judicial sale.
(9) If a foreclosure prevention alternative is
approved in writing, a mortgage servicer, mortgagee,
trustee, beneficiary, or authorized agent may not record a
notice of foreclosure or a notice of sale or conduct a
judicial sale as long as the mortgagor is in compliance
with the terms of the foreclosure prevention alternative.
(10) A mortgagee, beneficiary, or authorized agent
shall record a rescission of a notice of foreclosure or
cancel a pending judicial sale, if applicable, upon the
mortgagor executing a permanent foreclosure prevention
alternative.
(11) If the mortgagor's application for a foreclosure
prevention alternative is denied, the mortgagor shall have
at least 30 days from the date of the written denial to
appeal the denial and to provide evidence that the mortgage
servicer's determination was in error.
(12) Following the denial of a foreclosure prevention
alternative, the mortgagee shall send a written notice to
the mortgagor identifying the reasons for the denial,

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including the following:
(i) the amount of time from the date of the denial
letter in which the mortgagor may request an appeal of
the denial of the foreclosure prevention alternative
and instructions regarding how to appeal the denial;
(ii) if the denial was based on investor
disallowance, the specific reasons for the investor
disallowance;
(iii) if the denial is the result of a net present
value calculation, the monthly gross income and
property value used to calculate the net present value
and a statement that the mortgagor may obtain all of
the inputs used in the net present value calculation
upon written request to the mortgage servicer;
(iv) if applicable, a finding that the mortgagor
was previously offered a foreclosure prevention
alternative and defaulted on, or otherwise breached,
the mortgagor's obligations under the foreclosure
prevention alternative agreement;
(v) if applicable, a description of other
foreclosure prevention alternatives for which the
mortgagor may be eligible, and a list of the steps the
mortgagor must take in order to be considered for those
options; and
(vi) if the mortgagee has already approved the
mortgagor for another foreclosure prevention

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alternative, information necessary to complete the
approved foreclosure prevention alternative.
(13) A mortgage servicer, mortgagee, trustee,
beneficiary, or authorized agent may not record or file a
foreclosure complaint, seek a foreclosure judgment, or
conduct or seek to confirm a judicial sale until:
(i) the mortgagee provides written notice of a
determination that the mortgagor is not eligible for a
foreclosure prevention alternative and any appeal
period has expired;
(ii) the mortgagor does not accept an offered
foreclosure prevention alternative within 14 days of
the written offer;
(iii) the mortgagor accepts a foreclosure
prevention alternative, but defaults on or otherwise
breaches the mortgagor's obligations under the
foreclosure prevention alternative; or
(iv) if the mortgagor appeals the denial, the later
of 15 days after the denial of the appeal or 14 days
after a foreclosure prevention alternative is offered
in writing after appeal but declined by the mortgagor,
or, if a foreclosure prevention alternative is offered
in writing and accepted after appeal, the date on which
the mortgagor breaches the terms of the offer.
(14) In order to minimize the risk of mortgagors
submitting multiple applications for first lien loan

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modifications for the purpose of delay, the mortgagee is
not obligated to evaluate applications from mortgagors who
have already been evaluated or afforded a fair opportunity
to be evaluated for a foreclosure prevention alternative
prior to January 1, 2014, or who have been evaluated or
afforded a fair opportunity to be evaluated consistent with
the requirements of this Section, unless there has been a
material change in the mortgagor's financial circumstances
since the date of the mortgagor's previous application and
that change is documented by the mortgagor and submitted to
the mortgage servicer.
(15) If a mortgagor has been approved in writing for a
foreclosure prevention alternative, and the servicing of
that mortgagor's loan is transferred or sold to another
mortgage servicer, the subsequent mortgagee must continue
to honor any previously approved foreclosure prevention
alternative.
(k) When a mortgagor requests a foreclosure prevention
alternative, the mortgagee shall promptly establish a single
point of contact and provide to the mortgagor one or more
direct means of communication with the single point of contact.
The single point of contact shall be responsible for doing all
of the following:
(i) communicating the process by which a mortgagor may
apply for an available foreclosure prevention alternative
and the deadline for any required submissions to be

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considered for these options;
(ii) coordinating receipt of all documents associated
with available foreclosure prevention alternatives and
notifying the mortgagor of any missing documents necessary
to complete the application;
(iii) having access to current information and
personnel sufficient to timely, accurately, and adequately
inform the mortgagor of the current status of the
foreclosure prevention alternative application;
(iv) ensuring that a mortgagor is considered for all
foreclosure prevention alternatives offered by or through
the mortgage servicer, if any; and
(v) having access to individuals with the ability and
authority to stop foreclosure proceedings when necessary.
The single point of contact shall remain assigned to the
mortgagor's account until the mortgagee determines that all
loss mitigation options offered by or through the mortgagee
have been exhausted or the mortgagor's account becomes current.
The mortgagee shall ensure that a single point of contact
refers and transfers a mortgagor to an appropriate supervisor
upon request of the mortgagor, if the single point of contact
has a supervisor.
As used in this subsection (k), "single point of contact"
means an individual who has the ability and authority to
perform the responsibilities described in this subsection.
(l) With respect to documents relative to a foreclosure

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proceeding, the following apply:
(1) Any affidavit filed in any court relative to a
foreclosure proceeding shall be accurate and complete and
supported by competent and reliable evidence.
(2) Before recording or filing any of the documents
related to the foreclosure, a mortgagee shall ensure that
it has reviewed competent and reliable evidence to
substantiate the mortgagor's default and the mortgagee's
right to foreclose, including the mortgagor's loan status
and loan information.
(3) Any mortgagee that engages in multiple and repeated
uncorrected violations in recording documents or in filing
documents in any court relative to a foreclosure proceeding
shall be liable for a civil penalty, of up to $7,500 per
mortgage or deed of trust, in an action brought by a
government entity or in an administrative proceeding
brought by the Department against a respective licensee, in
addition to any other remedies available to these entities.
(m) Notwithstanding any other provision of this Section, no
request for a deficiency judgment shall be granted to any
plaintiff for a first lien mortgage, deed of trust, or purchase
money loan that is:
(i) secured by owner-occupied residential real
property containing no more than 4 dwelling units; and
(ii) in fact used to pay all or part of the purchase
price of the dwelling occupied entirely or in part by the

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purchaser.
As used in this subsection (m), a "purchase money loan" is
any loan, refinance, or other credit transaction
(collectively, a "credit transaction") which is used to
refinance a purchase money loan, or subsequent refinances of a
purchase money loan, except to the extent that in a credit
transaction, the lender or creditor advances new principal
(hereafter "new advance") which is not applied to any
obligation owed or to be owed under the purchase money loan, or
to fees, costs, or related expenses of the credit transaction.
Any new credit transaction shall be deemed to be a purchase
money loan except as to the principal amount of any new
advance. Any payment of principal shall be applied first to the
principal balance of the purchase money loan, and then to the
principal balance of any new advance, and interest payments
shall be applied to any interest due and owing.
(n) Whenever a judicial sale is postponed for at least 10
business days, a mortgagee, beneficiary, or authorized agent
shall provide written notice regarding the new sale date and
time, to all parties who have appeared or filed an answer,
within 5 business days following the postponement. Failure to
comply with this subsection (n) does not invalidate any sale
that would otherwise be valid.
(o) Failure to comply with any of the requirements of this
Section shall provide a private right of action, which can be
asserted by a mortgagor as a defense or counterclaim in a

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foreclosure action, or as a claim in an independent action. In
a foreclosure action, the mortgagor may assert a defense or
counterclaim to oppose or vacate a foreclosure judgment, to
postpone or set aside a judicial sale, or to oppose or vacate
an order approving a sale.
After a deed upon sale has been recorded, a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent
shall be liable to a mortgagor for actual economic damages
resulting from a material violation of this Section by that
mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent where the violation was not corrected and
remedied prior to the recording of the deed upon sale. If the
court finds that the material violation was intentional or
reckless, or resulted from willful misconduct by a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized
agent, the court may award the mortgagor the greater of treble
actual damages or statutory damages of $50,000.
A mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent is not liable for any violation that it has
corrected and remedied prior to the recordation of a deed upon
sale, or that has been corrected and remedied by a third party
working on its behalf prior to the recordation of a deed upon
sale.
A violation of this Section by a person licensed by the
Department shall be deemed to be a violation of that person's
licensing law.

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No violation of this Article shall affect the validity of a
sale in favor of a bona fide purchaser and any of its
encumbrancers for value without notice. A third-party
encumbrancer shall not be relieved of liability resulting from
violations of this Section, committed by that third-party
encumbrancer, that occurred prior to the sale of the subject
property to the bona fide purchaser.
The rights, remedies, and procedures provided by this
Section are in addition to and independent of any other rights,
remedies, or procedures under any other law. Nothing in this
Section shall be construed to alter, limit, or negate any other
rights, remedies, or procedures provided by law.
A court shall award a prevailing mortgagor reasonable
attorney's fees and costs in an action brought under this
Section. A mortgagor shall be deemed to have prevailed for
purposes of this subsection (o) if the mortgagor obtained
injunctive relief or was awarded damages under this Section.
(p) For all residential real estate with no more than 4
dwelling units that is occupied as a principal residence by the
mortgagor, a judgment must include, in addition to the other
information required in Section 15-1506 of this Code, a written
finding by the court that all reasonable foreclosure prevention
alternatives have been exhausted by the mortgagee and
mortgagor.
(q) Consistent with its general regulatory authority, the
Department may adopt rules applicable to any entity or person

SB1728 - 23 - LRB098 09930 HEP 40088 b
under its respective jurisdiction that are necessary to
implement this Section. A violation of the rules adopted
pursuant to this Section shall be enforceable only by the
Department.
(r) Unless otherwise provided, this Section applies only to
residential real estate with no more than 4 dwelling units that
is occupied as a principal residence by the mortgagor.
(s) The provisions of this Section are severable. If any
provision of this Section or its application is held invalid,
that invalidity shall not affect other provisions or
applications that can be given effect without the invalid
provision or application.
(735 ILCS 5/15-1504) (from Ch. 110, par. 15-1504)
(Text of Section before amendment by P.A. 97-1164)
Sec. 15-1504. Pleadings and service.
(a) Form of Complaint. A foreclosure complaint may be in
substantially the following form:
(1) Plaintiff files this complaint to foreclose the
mortgage (or other conveyance in the nature of a mortgage)
(hereinafter called "mortgage") hereinafter described and
joins the following person as defendants: (here insert
names of all defendants).
(2) Attached as Exhibit "A" is a copy of the mortgage
and as Exhibit "B" is a copy of the note secured thereby.
(3) Information concerning mortgage:

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(A) Nature of instrument: (here insert whether a
mortgage, trust deed or other instrument in the nature
of a mortgage, etc.)
(B) Date of mortgage:
(C) Name of mortgagor:
(D) Name of mortgagee:
(E) Date and place of recording:
(F) Identification of recording: (here insert book
and page number or document number)
(G) Interest subject to the mortgage: (here insert
whether fee simple, estate for years, undivided
interest, etc.)
(H) Amount of original indebtedness, including
subsequent advances made under the mortgage:
(I) Both the legal description of the mortgaged
real estate and the common address or other information
sufficient to identify it with reasonable certainty:
(J) Statement as to defaults, including, but not
necessarily limited to, date of default, current
unpaid principal balance, per diem interest accruing,
and any further information concerning the default:
(K) Name of present owner of the real estate:
(L) Names of other persons who are joined as
defendants and whose interest in or lien on the
mortgaged real estate is sought to be terminated:
(M) Names of defendants claimed to be personally

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liable for deficiency, if any:
(N) Capacity in which plaintiff brings this
foreclosure (here indicate whether plaintiff is the
legal holder of the indebtedness, a pledgee, an agent,
the trustee under a trust deed or otherwise, as
appropriate):
(O) Facts in support of redemption period shorter
than the longer of (i) 7 months from the date the
mortgagor or, if more than one, all the mortgagors (I)
have been served with summons or by publication or (II)
have otherwise submitted to the jurisdiction of the
court, or (ii) 3 months from the entry of the judgment
of foreclosure, if sought (here indicate whether based
upon the real estate not being residential,
abandonment, or real estate value less than 90% of
amount owed, etc.):
(P) Statement that the right of redemption has been
waived by all owners of redemption, if applicable:
(Q) Facts in support of request for attorneys' fees
and of costs and expenses, if applicable:
(R) Facts in support of a request for appointment
of mortgagee in possession or for appointment of
receiver, and identity of such receiver, if sought:
(S) Offer to mortgagor in accordance with Section
15-1402 to accept title to the real estate in
satisfaction of all indebtedness and obligations

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secured by the mortgage without judicial sale, if
sought:
(T) Name or names of defendants whose right to
possess the mortgaged real estate, after the
confirmation of a foreclosure sale, is sought to be
terminated and, if not elsewhere stated, the facts in
support thereof:
(U) For all residential real estate with no more
than 4 dwelling units that is occupied as a principal
residence by the mortgagor, statement as to what
sustainable loan workout plans, if any, have been
attempted between the mortgagee and mortgagor:
(V) For all residential real estate with no more
than 4 dwelling units that is occupied as a principal
residence by the mortgagor, statement as to what
foreclosure prevention alternatives will be attempted
between the mortgagee and mortgagor:
REQUEST FOR RELIEF
Plaintiff requests:
(i) A judgment of foreclosure and sale.
(ii) An order granting a shortened redemption period,
if sought.
(iii) A personal judgment for a deficiency, if sought.
(iv) An order granting possession, if sought.
(v) An order placing the mortgagee in possession or

SB1728 - 27 - LRB098 09930 HEP 40088 b
appointing a receiver, if sought.
(vi) A judgment for attorneys' fees, costs and
expenses, if sought.
(b) Required Information. A foreclosure complaint need
contain only such statements and requests called for by the
form set forth in subsection (a) of Section 15-1504 as may be
appropriate for the relief sought. Such complaint may be filed
as a counterclaim, may be joined with other counts or may
include in the same count additional matters or a request for
any additional relief permitted by Article II of the Code of
Civil Procedure.
(c) Allegations. The statements contained in a complaint in
the form set forth in subsection (a) of Section 15-1504 are
deemed and construed to include allegations as follows:
(1) on the date indicated the obligor of the
indebtedness or other obligations secured by the mortgage
was justly indebted in the amount of the indicated original
indebtedness to the original mortgagee or payee of the
mortgage note;
(2) that the exhibits attached are true and correct
copies of the mortgage and note and are incorporated and
made a part of the complaint by express reference;
(3) that the mortgagor was at the date indicated an
owner of the interest in the real estate described in the
complaint and that as of that date made, executed and
delivered the mortgage as security for the note or other

SB1728 - 28 - LRB098 09930 HEP 40088 b
obligations;
(4) that the mortgage was recorded in the county in
which the mortgaged real estate is located, on the date
indicated, in the book and page or as the document number
indicated;
(5) that defaults occurred as indicated;
(6) that at the time of the filing of the complaint the
persons named as present owners are the owners of the
indicated interests in and to the real estate described;
(7) that the mortgage constitutes a valid, prior and
paramount lien upon the indicated interest in the mortgaged
real estate, which lien is prior and superior to the right,
title, interest, claim or lien of all parties and nonrecord
claimants whose interests in the mortgaged real estate are
sought to be terminated;
(8) that by reason of the defaults alleged, if the
indebtedness has not matured by its terms, the same has
become due by the exercise, by the plaintiff or other
persons having such power, of a right or power to declare
immediately due and payable the whole of all indebtedness
secured by the mortgage;
(9) that any and all notices of default or election to
declare the indebtedness due and payable or other notices
required to be given have been duly and properly given;
(10) that any and all periods of grace or other period
of time allowed for the performance of the covenants or

SB1728 - 29 - LRB098 09930 HEP 40088 b
conditions claimed to be breached or for the curing of any
breaches have expired;
(11) that the amounts indicated in the statement in the
complaint are correctly stated and if such statement
indicates any advances made or to be made by the plaintiff
or owner of the mortgage indebtedness, that such advances
were, in fact, made or will be required to be made, and
under and by virtue of the mortgage the same constitute
additional indebtedness secured by the mortgage; and
(12) that, upon confirmation of the sale, the holder of
the certificate of sale or deed issued pursuant to that
certificate or, if no certificate or deed was issued, the
purchaser at the sale will be entitled to full possession
of the mortgaged real estate against the parties named in
clause (T) of paragraph (3) of subsection (a) of Section
15-1504 or elsewhere to the same effect; the omission of
any party indicates that plaintiff will not seek a
possessory order in the order confirming sale unless the
request is subsequently made under subsection (h) of
Section 15-1701 or by separate action under Article 9 of
this Code.
(d) Request for Fees and Costs. A statement in the
complaint that plaintiff seeks the inclusion of attorneys' fees
and of costs and expenses shall be deemed and construed to
include allegations that:
(1) plaintiff has been compelled to employ and retain

SB1728 - 30 - LRB098 09930 HEP 40088 b
attorneys to prepare and file the complaint and to
represent and advise the plaintiff in the foreclosure of
the mortgage and the plaintiff will thereby become liable
for the usual, reasonable and customary fees of the
attorneys in that behalf;
(2) that the plaintiff has been compelled to advance or
will be compelled to advance, various sums of money in
payment of costs, fees, expenses and disbursements
incurred in connection with the foreclosure, including,
without limiting the generality of the foregoing, filing
fees, stenographer's fees, witness fees, costs of
publication, costs of procuring and preparing documentary
evidence and costs of procuring abstracts of title, Torrens
certificates, foreclosure minutes and a title insurance
policy;
(3) that under the terms of the mortgage, all such
advances, costs, attorneys' fees and other fees, expenses
and disbursements are made a lien upon the mortgaged real
estate and the plaintiff is entitled to recover all such
advances, costs, attorneys' fees, expenses and
disbursements, together with interest on all advances at
the rate provided in the mortgage, or, if no rate is
provided therein, at the statutory judgment rate, from the
date on which such advances are made;
(4) that in order to protect the lien of the mortgage,
it may become necessary for plaintiff to pay taxes and

SB1728 - 31 - LRB098 09930 HEP 40088 b
assessments which have been or may be levied upon the
mortgaged real estate;
(5) that in order to protect and preserve the mortgaged
real estate, it may also become necessary for the plaintiff
to pay liability (protecting mortgagor and mortgagee),
fire and other hazard insurance premiums on the mortgaged
real estate, make such repairs to the mortgaged real estate
as may reasonably be deemed necessary for the proper
preservation thereof, advance for costs to inspect the
mortgaged real estate or to appraise it, or both, and
advance for premiums for pre-existing private or
governmental mortgage insurance to the extent required
after a foreclosure is commenced in order to keep such
insurance in force; and
(6) that under the terms of the mortgage, any money so
paid or expended will become an additional indebtedness
secured by the mortgage and will bear interest from the
date such monies are advanced at the rate provided in the
mortgage, or, if no rate is provided, at the statutory
judgment rate.
(e) Request for Foreclosure. The request for foreclosure is
deemed and construed to mean that the plaintiff requests that:
(1) an accounting may be taken under the direction of
the court of the amounts due and owing to the plaintiff;
(2) that the defendants be ordered to pay to the
plaintiff before expiration of any redemption period (or,

SB1728 - 32 - LRB098 09930 HEP 40088 b
if no redemption period, before a short date fixed by the
court) whatever sums may appear to be due upon the taking
of such account, together with attorneys' fees and costs of
the proceedings (to the extent provided in the mortgage or
by law);
(3) that in default of such payment in accordance with
the judgment, the mortgaged real estate be sold as directed
by the court, to satisfy the amount due to the plaintiff as
set forth in the judgment, together with the interest
thereon at the statutory judgment rate from the date of the
judgment;
(4) that in the event the plaintiff is a purchaser of
the mortgaged real estate at such sale, the plaintiff may
offset against the purchase price of such real estate the
amounts due under the judgment of foreclosure and order
confirming the sale;
(5) that in the event of such sale and the failure of
any person entitled thereto to redeem prior to such sale
pursuant to this Article, the defendants made parties to
the foreclosure in accordance with this Article, and all
nonrecord claimants given notice of the foreclosure in
accordance with this Article, and all persons claiming by,
through or under them, and each and any and all of them,
may be forever barred and foreclosed of any right, title,
interest, claim, lien, or right to redeem in and to the
mortgaged real estate; and

SB1728 - 33 - LRB098 09930 HEP 40088 b
(6) that if no redemption is made prior to such sale, a
deed may be issued to the purchaser thereat according to
law and such purchaser be let into possession of the
mortgaged real estate in accordance with Part 17 of this
Article.
(f) Request for Deficiency Judgment. A request for a
personal judgment for a deficiency in a foreclosure complaint
if the sale of the mortgaged real estate fails to produce a
sufficient amount to pay the amount found due, the plaintiff
may have a personal judgment against any party in the
foreclosure indicated as being personally liable therefor and
the enforcement thereof be had as provided by law.
(g) Request for Possession or Receiver. A request for
possession or appointment of a receiver has the meaning as
stated in subsection (b) of Section 15-1706.
(h) Answers by Parties. Any party may assert its interest
by counterclaim and such counterclaim may at the option of that
party stand in lieu of answer to the complaint for foreclosure
and all counter complaints previously or thereafter filed in
the foreclosure. Any such counterclaim shall be deemed to
constitute a statement that the counter claimant does not have
sufficient knowledge to form a belief as to the truth or
falsity of the allegations of the complaint and all other
counterclaims, except to the extent that the counterclaim
admits or specifically denies such allegations.
(Source: P.A. 91-357, eff. 7-29-99.)

SB1728 - 34 - LRB098 09930 HEP 40088 b
(Text of Section after amendment by P.A. 97-1164)
Sec. 15-1504. Pleadings and service.
(a) Form of Complaint. A foreclosure complaint may be in
substantially the following form:
(1) Plaintiff files this complaint to foreclose the
mortgage (or other conveyance in the nature of a mortgage)
(hereinafter called "mortgage") hereinafter described and
joins the following person as defendants: (here insert
names of all defendants).
(2) Attached as Exhibit "A" is a copy of the mortgage
and as Exhibit "B" is a copy of the note secured thereby.
(3) Information concerning mortgage:
(A) Nature of instrument: (here insert whether a
mortgage, trust deed or other instrument in the nature
of a mortgage, etc.)
(B) Date of mortgage:
(C) Name of mortgagor:
(D) Name of mortgagee:
(E) Date and place of recording:
(F) Identification of recording: (here insert book
and page number or document number)
(G) Interest subject to the mortgage: (here insert
whether fee simple, estate for years, undivided
interest, etc.)
(H) Amount of original indebtedness, including

SB1728 - 35 - LRB098 09930 HEP 40088 b
subsequent advances made under the mortgage:
(I) Both the legal description of the mortgaged
real estate and the common address or other information
sufficient to identify it with reasonable certainty:
(J) Statement as to defaults, including, but not
necessarily limited to, date of default, current
unpaid principal balance, per diem interest accruing,
and any further information concerning the default:
(K) Name of present owner of the real estate:
(L) Names of other persons who are joined as
defendants and whose interest in or lien on the
mortgaged real estate is sought to be terminated:
(M) Names of defendants claimed to be personally
liable for deficiency, if any:
(N) Capacity in which plaintiff brings this
foreclosure (here indicate whether plaintiff is the
legal holder of the indebtedness, a pledgee, an agent,
the trustee under a trust deed or otherwise, as
appropriate):
(O) Facts in support of redemption period shorter
than the longer of (i) 7 months from the date the
mortgagor or, if more than one, all the mortgagors (I)
have been served with summons or by publication or (II)
have otherwise submitted to the jurisdiction of the
court, or (ii) 3 months from the entry of the judgment
of foreclosure, if sought (here indicate whether based

SB1728 - 36 - LRB098 09930 HEP 40088 b
upon the real estate not being residential or real
estate value less than 90% of amount owed, etc.):
(P) Statement that the right of redemption has been
waived by all owners of redemption, if applicable:
(Q) Facts in support of request for attorneys' fees
and of costs and expenses, if applicable:
(R) Facts in support of a request for appointment
of mortgagee in possession or for appointment of
receiver, and identity of such receiver, if sought:
(S) Offer to mortgagor in accordance with Section
15-1402 to accept title to the real estate in
satisfaction of all indebtedness and obligations
secured by the mortgage without judicial sale, if
sought:
(T) Name or names of defendants whose right to
possess the mortgaged real estate, after the
confirmation of a foreclosure sale, is sought to be
terminated and, if not elsewhere stated, the facts in
support thereof:
(U) For all residential real estate with no more
than 4 dwelling units that is occupied as a principal
residence by the mortgagor, statement as to what
sustainable loan workout plans, if any, have been
attempted between the mortgagee and mortgagor:
(V) For all residential real estate with no more
than 4 dwelling units that is occupied as a principal

SB1728 - 37 - LRB098 09930 HEP 40088 b
residence by the mortgagor, statement as to what
foreclosure prevention alternatives will be attempted
between the mortgagee and mortgagor:
REQUEST FOR RELIEF
Plaintiff requests:
(i) A judgment of foreclosure and sale.
(ii) An order granting a shortened redemption period,
if sought.
(iii) A personal judgment for a deficiency, if sought.
(iv) An order granting possession, if sought.
(v) An order placing the mortgagee in possession or
appointing a receiver, if sought.
(vi) A judgment for attorneys' fees, costs and
expenses, if sought.
(b) Required Information. A foreclosure complaint need
contain only such statements and requests called for by the
form set forth in subsection (a) of Section 15-1504 as may be
appropriate for the relief sought. Such complaint may be filed
as a counterclaim, may be joined with other counts or may
include in the same count additional matters or a request for
any additional relief permitted by Article II of the Code of
Civil Procedure.
(c) Allegations. The statements contained in a complaint in
the form set forth in subsection (a) of Section 15-1504 are
deemed and construed to include allegations as follows:

SB1728 - 38 - LRB098 09930 HEP 40088 b
(1) that, on the date indicated, the obligor of the
indebtedness or other obligations secured by the mortgage
was justly indebted in the amount of the indicated original
indebtedness to the original mortgagee or payee of the
mortgage note;
(2) that the exhibits attached are true and correct
copies of the mortgage and note and are incorporated and
made a part of the complaint by express reference;
(3) that the mortgagor was at the date indicated an
owner of the interest in the real estate described in the
complaint and that as of that date made, executed and
delivered the mortgage as security for the note or other
obligations;
(4) that the mortgage was recorded in the county in
which the mortgaged real estate is located, on the date
indicated, in the book and page or as the document number
indicated;
(5) that defaults occurred as indicated;
(6) that at the time of the filing of the complaint the
persons named as present owners are the owners of the
indicated interests in and to the real estate described;
(7) that the mortgage constitutes a valid, prior and
paramount lien upon the indicated interest in the mortgaged
real estate, which lien is prior and superior to the right,
title, interest, claim or lien of all parties and nonrecord
claimants whose interests in the mortgaged real estate are

SB1728 - 39 - LRB098 09930 HEP 40088 b
sought to be terminated;
(8) that by reason of the defaults alleged, if the
indebtedness has not matured by its terms, the same has
become due by the exercise, by the plaintiff or other
persons having such power, of a right or power to declare
immediately due and payable the whole of all indebtedness
secured by the mortgage;
(9) that any and all notices of default or election to
declare the indebtedness due and payable or other notices
required to be given have been duly and properly given;
(10) that any and all periods of grace or other period
of time allowed for the performance of the covenants or
conditions claimed to be breached or for the curing of any
breaches have expired;
(11) that the amounts indicated in the statement in the
complaint are correctly stated and if such statement
indicates any advances made or to be made by the plaintiff
or owner of the mortgage indebtedness, that such advances
were, in fact, made or will be required to be made, and
under and by virtue of the mortgage the same constitute
additional indebtedness secured by the mortgage; and
(12) that, upon confirmation of the sale, the holder of
the certificate of sale or deed issued pursuant to that
certificate or, if no certificate or deed was issued, the
purchaser at the sale will be entitled to full possession
of the mortgaged real estate against the parties named in

SB1728 - 40 - LRB098 09930 HEP 40088 b
clause (T) of paragraph (3) of subsection (a) of Section
15-1504 or elsewhere to the same effect; the omission of
any party indicates that plaintiff will not seek a
possessory order in the order confirming sale unless the
request is subsequently made under subsection (h) of
Section 15-1701 or by separate action under Article 9 of
this Code.
(d) Request for Fees and Costs. A statement in the
complaint that plaintiff seeks the inclusion of attorneys' fees
and of costs and expenses shall be deemed and construed to
include allegations that:
(1) plaintiff has been compelled to employ and retain
attorneys to prepare and file the complaint and to
represent and advise the plaintiff in the foreclosure of
the mortgage and the plaintiff will thereby become liable
for the usual, reasonable and customary fees of the
attorneys in that behalf;
(2) the plaintiff has been compelled to advance or will
be compelled to advance, various sums of money in payment
of costs, fees, expenses and disbursements incurred in
connection with the foreclosure, including, without
limiting the generality of the foregoing, filing fees,
stenographer's fees, witness fees, costs of publication,
costs of procuring and preparing documentary evidence and
costs of procuring abstracts of title, Torrens
certificates, foreclosure minutes and a title insurance

SB1728 - 41 - LRB098 09930 HEP 40088 b
policy;
(3) under the terms of the mortgage, all such advances,
costs, attorneys' fees and other fees, expenses and
disbursements are made a lien upon the mortgaged real
estate and the plaintiff is entitled to recover all such
advances, costs, attorneys' fees, expenses and
disbursements, together with interest on all advances at
the rate provided in the mortgage, or, if no rate is
provided therein, at the statutory judgment rate, from the
date on which such advances are made;
(4) in order to protect the lien of the mortgage, it
may become necessary for plaintiff to pay taxes and
assessments which have been or may be levied upon the
mortgaged real estate;
(5) in order to protect and preserve the mortgaged real
estate, it may also become necessary for the plaintiff to
pay liability (protecting mortgagor and mortgagee), fire
and other hazard insurance premiums on the mortgaged real
estate, make such repairs to the mortgaged real estate as
may reasonably be deemed necessary for the proper
preservation thereof, advance for costs to inspect the
mortgaged real estate or to appraise it, or both, and
advance for premiums for pre-existing private or
governmental mortgage insurance to the extent required
after a foreclosure is commenced in order to keep such
insurance in force; and

SB1728 - 42 - LRB098 09930 HEP 40088 b
(6) under the terms of the mortgage, any money so paid
or expended will become an additional indebtedness secured
by the mortgage and will bear interest from the date such
monies are advanced at the rate provided in the mortgage,
or, if no rate is provided, at the statutory judgment rate.
(e) Request for Foreclosure. The request for foreclosure is
deemed and construed to mean that the plaintiff requests that:
(1) an accounting may be taken under the direction of
the court of the amounts due and owing to the plaintiff;
(2) the defendants be ordered to pay to the plaintiff
before expiration of any redemption period (or, if no
redemption period, before a short date fixed by the court)
whatever sums may appear to be due upon the taking of such
account, together with attorneys' fees and costs of the
proceedings (to the extent provided in the mortgage or by
law);
(3) in default of such payment in accordance with the
judgment, the mortgaged real estate be sold as directed by
the court, to satisfy the amount due to the plaintiff as
set forth in the judgment, together with the interest
thereon at the statutory judgment rate from the date of the
judgment;
(4) in the event the plaintiff is a purchaser of the
mortgaged real estate at such sale, the plaintiff may
offset against the purchase price of such real estate the
amounts due under the judgment of foreclosure and order

SB1728 - 43 - LRB098 09930 HEP 40088 b
confirming the sale;
(5) in the event of such sale and the failure of any
person entitled thereto to redeem prior to such sale
pursuant to this Article, the defendants made parties to
the foreclosure in accordance with this Article, and all
nonrecord claimants given notice of the foreclosure in
accordance with this Article, and all persons claiming by,
through or under them, and each and any and all of them,
may be forever barred and foreclosed of any right, title,
interest, claim, lien, or right to redeem in and to the
mortgaged real estate; and
(6) if no redemption is made prior to such sale, a deed
may be issued to the purchaser thereat according to law and
such purchaser be let into possession of the mortgaged real
estate in accordance with Part 17 of this Article.
(f) Request for Deficiency Judgment. A request for a
personal judgment for a deficiency in a foreclosure complaint
if the sale of the mortgaged real estate fails to produce a
sufficient amount to pay the amount found due, the plaintiff
may have a personal judgment against any party in the
foreclosure indicated as being personally liable therefor and
the enforcement thereof be had as provided by law.
(g) Request for Possession or Receiver. A request for
possession or appointment of a receiver has the meaning as
stated in subsection (b) of Section 15-1706.
(h) Answers by Parties. Any party may assert its interest

SB1728 - 44 - LRB098 09930 HEP 40088 b
by counterclaim and such counterclaim may at the option of that
party stand in lieu of answer to the complaint for foreclosure
and all counter complaints previously or thereafter filed in
the foreclosure. Any such counterclaim shall be deemed to
constitute a statement that the counter claimant does not have
sufficient knowledge to form a belief as to the truth or
falsity of the allegations of the complaint and all other
counterclaims, except to the extent that the counterclaim
admits or specifically denies such allegations.
(Source: P.A. 97-1164, eff. 6-1-13.)
(735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507)
Sec. 15-1507. Judicial Sale.
(a) In General. Except as provided in Sections 15-1402 and
15-1403, upon entry of a judgment of foreclosure, the real
estate which is the subject of the judgment shall be sold at a
judicial sale in accordance with this Section 15-1507.
(b) Sale Procedures. Upon expiration of the reinstatement
period and the redemption period in accordance with subsection
(b) or (c) of Section 15-1603 or upon the entry of a judgment
of foreclosure after the waiver of all rights of redemption,
except as provided in subsection (g) of Section 15-1506, the
real estate shall be sold at a sale as provided in this
Article, on such terms and conditions as shall be specified by
the court in the judgment of foreclosure. A sale may be
conducted by any judge or sheriff.

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(c) Notice of Sale. The mortgagee, or such other party
designated by the court, in a foreclosure under this Article
shall give public notice of the sale as follows:
(1) The notice of sale shall include at least the
following information, but an immaterial error in the
information shall not invalidate the legal effect of the
notice:
(A) the name, address and telephone number of the
person to contact for information regarding the real
estate;
(B) the common address and other common
description (other than legal description), if any, of
the real estate;
(C) a legal description of the real estate
sufficient to identify it with reasonable certainty;
(D) a description of the improvements on the real
estate;
(E) the times specified in the judgment, if any,
when the real estate may be inspected prior to sale;
(F) the time and place of the sale;
(G) the terms of the sale;
(H) the case title, case number and the court in
which the foreclosure was filed;
(H-1) in the case of a condominium unit to which
subsection (g) of Section 9 of the Condominium Property
Act applies, the statement required by subdivision

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(g)(5) of Section 9 of the Condominium Property Act;
(H-2) in the case of a unit of a common interest
community to which subsection (g-1) of Section 18.5 of
the Condominium Property Act applies, the statement
required by subdivision (g-1) of Section 18.5 of the
Condominium Property Act; and
(I) such other information ordered by the Court.
(2) The notice of sale shall be published at least 3
consecutive calendar weeks (Sunday through Saturday), once
in each week, the first such notice to be published not
more than 45 days prior to the sale, the last such notice
to be published not less than 7 days prior to the sale, by:
(i) (A) advertisements in a newspaper circulated to the
general public in the county in which the real estate is
located, in the section of that newspaper where legal
notices are commonly placed and (B) separate
advertisements in the section of such a newspaper, which
(except in counties with a population in excess of
3,000,000) may be the same newspaper, in which real estate
other than real estate being sold as part of legal
proceedings is commonly advertised to the general public;
provided, that the separate advertisements in the real
estate section need not include a legal description and
that where both advertisements could be published in the
same newspaper and that newspaper does not have separate
legal notices and real estate advertisement sections, a

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single advertisement with the legal description shall be
sufficient; and (ii) such other publications as may be
further ordered by the court.
(3) The party who gives notice of public sale in
accordance with subsection (c) of Section 15-1507 shall
also give notice to all parties in the action who have
appeared or filed an answer and have not theretofore been
found by the court to be in default for failure to plead.
Such notice shall be given in the manner provided in the
applicable rules of court for service of papers other than
process and complaint, not more than 45 days nor less than
7 days prior to the day of sale. After notice is given as
required in this Section a copy thereof shall be filed in
the office of the clerk of the court entering the judgment,
together with a certificate of counsel or other proof that
notice has been served in compliance with this Section.
(4) The party who gives notice of public sale in
accordance with subsection (c) of Section 15-1507 shall
again give notice in accordance with that Section of any
adjourned sale; provided, however, that if the adjourned
sale is to occur less than 60 days after the last scheduled
sale, notice of any adjourned sale need not be given
pursuant to this Section. In the event of adjournment, the
person conducting the sale shall, upon adjournment,
announce the date, time and place upon which the adjourned
sale shall be held. Notwithstanding any language to the

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contrary, for any adjourned sale that is to be conducted
more than 60 days after the date on which it was to first
be held, the party giving notice of such sale shall again
give notice in accordance with this Section.
(5) Notice of the sale may be given prior to the
expiration of any reinstatement period or redemption
period.
(6) No other notice by publication or posting shall be
necessary unless required by order or rule of the court.
(7) The person named in the notice of sale to be
contacted for information about the real estate may, but
shall not be required, to provide additional information
other than that set forth in the notice of sale.
(d) Election of Property. If the real estate which is the
subject of a judgment of foreclosure is susceptible of
division, the court may order it to be sold as necessary to
satisfy the judgment. The court shall determine which real
estate shall be sold, and the court may determine the order in
which separate tracts may be sold.
(e) Receipt upon Sale. Upon and at the sale of mortgaged
real estate, the person conducting the sale shall give to the
purchaser a receipt of sale. The receipt shall describe the
real estate purchased and shall show the amount bid, the amount
paid, the total amount paid to date and the amount still to be
paid therefor. An additional receipt shall be given at the time
of each subsequent payment.

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(f) Certificate of Sale. Upon payment in full of the amount
bid, the person conducting the sale shall issue, in duplicate,
and give to the purchaser a Certificate of Sale. The
Certificate of Sale shall be in a recordable form, describe the
real estate purchased, indicate the date and place of sale and
show the amount paid therefor. The Certificate of Sale shall
further indicate that it is subject to confirmation by the
court. The duplicate certificate may be recorded in accordance
with Section 12-121. The Certificate of Sale shall be freely
assignable by endorsement thereon.
(g) Interest after Sale. Any bid at sale shall be deemed to
include, without the necessity of a court order, interest at
the statutory judgment rate on any unpaid portion of the sale
price from the date of sale to the date of payment.
(Source: P.A. 96-1045, eff. 7-14-10.)
Section 10. The Conveyances Act is amended by changing
Sections 28 and 30 as follows:
(765 ILCS 5/28) (from Ch. 30, par. 27)
Sec. 28. Deeds, mortgages, powers of attorney, and other
instruments relating to or affecting the title to real estate
in this state, shall be recorded in the recorder's office in
the county in which such real estate is situated; but if such
county is not organized, then in the county to which such
unorganized county is attached for judicial purposes. No deed,

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mortgage, assignment of mortgage, or other instrument relating
to or affecting the title to real estate in this State may
include a provision prohibiting the recording of that
instrument, and any such provision in an instrument signed
after the effective date of this amendatory Act shall be void
and of no force and effect.
(Source: P.A. 89-160, eff. 7-19-95.)
(765 ILCS 5/30) (from Ch. 30, par. 29)
Sec. 30. Effect of recording. All deeds, mortgages,
assignments, mortgage releases, mortgage modifications, land
equity loans, liens, lis pendens, memoranda of judgment, and
other instruments in of writing that affect interests in real
property and that which are authorized to be recorded, shall
take effect and be in force from and after the time of filing
the same for record, and not before, as to all creditors and
subsequent purchasers, without notice; and all these such deeds
and title papers shall be adjudged void as to all such
creditors and subsequent purchasers, without notice, until the
same shall be filed for record with the recorder's office in
the county in which the property is located.
(Source: Laws 1871-2, p. 282.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section

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represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law, except that Sec. 15-1502.6 of Section 5 takes
effect on January 1, 2014.