Bill Text: IL SB0016 | 2011-2012 | 97th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
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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1 | AMENDMENT TO SENATE BILL 16
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2 | AMENDMENT NO. ______. Amend Senate Bill 16 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | Section 5. The Illinois Municipal Code is amended by | ||||||
5 | changing Sections 11-20-15 and 11-20-15.1 and by adding Section | ||||||
6 | 11-20-17 as follows:
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7 | (65 ILCS 5/11-20-15) | ||||||
8 | Sec. 11-20-15. Lien for removal costs. | ||||||
9 | (a) If the municipality incurs a removal cost under Section | ||||||
10 | 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 with | ||||||
11 | respect to any underlying parcel, then that cost is a lien upon | ||||||
12 | that underlying parcel. This lien is superior to all other | ||||||
13 | liens and encumbrances, except tax liens and as otherwise | ||||||
14 | provided in subsection (c)
of this Section. | ||||||
15 | (b) To perfect a lien under this Section, the municipality | ||||||
16 | must, within one year after the removal cost is incurred, file |
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1 | notice of lien in the office of the recorder in the county in | ||||||
2 | which the underlying parcel is located or, if the underlying | ||||||
3 | parcel is registered under the Torrens system, in the office of | ||||||
4 | the Registrar of Titles of that county. The notice must consist | ||||||
5 | of a sworn statement setting out: | ||||||
6 | (1) a description of the underlying parcel that | ||||||
7 | sufficiently identifies the parcel; | ||||||
8 | (2) the amount of the removal cost; and | ||||||
9 | (3) the date or dates when the removal cost was | ||||||
10 | incurred by the municipality. | ||||||
11 | If, for any one parcel, the municipality engaged in any | ||||||
12 | removal activity on more than one occasion during the course of | ||||||
13 | one year, then the municipality may combine any or all of the | ||||||
14 | costs of each of those activities into a single notice of lien. | ||||||
15 | (c) A lien under this Section is not valid as to: (i) any | ||||||
16 | purchaser whose rights in and to the underlying parcel arose | ||||||
17 | after the removal activity but before the filing of the notice | ||||||
18 | of lien; or (ii) any mortgagee, judgment creditor, or other | ||||||
19 | lienor whose rights in and to the underlying parcel arose | ||||||
20 | before the filing of the notice of lien. | ||||||
21 | (d) The removal cost is not a lien on the underlying parcel | ||||||
22 | unless a notice is personally served on, or sent by certified | ||||||
23 | mail to, the person to whom was sent the tax bill for the | ||||||
24 | general taxes on the property for the taxable year immediately | ||||||
25 | preceding the removal activities. The notice must be delivered | ||||||
26 | or sent after the removal activities have been performed, and |
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1 | it must: (i) state the substance of this Section and the | ||||||
2 | substance of any ordinance of the municipality implementing | ||||||
3 | this Section; (ii) identify the underlying parcel, by common | ||||||
4 | description; and (iii) describe the removal activity. | ||||||
5 | (e) A lien under this Section may be enforced by | ||||||
6 | proceedings to foreclose as in the case of mortgages or | ||||||
7 | mechanics' liens. An action to foreclose a lien under this | ||||||
8 | Section must be commenced within 2 years after the date of | ||||||
9 | filing notice of lien. | ||||||
10 | (f) Any person who performs a removal activity by the | ||||||
11 | authority of the municipality may, in his or her own name, file | ||||||
12 | a lien and foreclose on that lien in the same manner as a | ||||||
13 | municipality under this Section. | ||||||
14 | (g) A failure to file a foreclosure action does not, in any | ||||||
15 | way, affect the validity of the lien against the underlying | ||||||
16 | parcel. | ||||||
17 | (h) Upon payment of the lien cost by the owner of the | ||||||
18 | underlying parcel after notice of lien has been filed, the | ||||||
19 | municipality (or its agent under subsection (f)) shall release | ||||||
20 | the lien, and the release may be filed of record by the owner | ||||||
21 | at his or her sole expense as in the case of filing notice of | ||||||
22 | lien. | ||||||
23 | (i) For the purposes of this Section: | ||||||
24 | "Lien cost" means the removal cost and the filing costs for | ||||||
25 | any notice of lien under subsection (b). | ||||||
26 | "Removal activity" means any activity for which a removal |
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1 | cost was incurred. | ||||||
2 | "Removal cost" means a removal cost as defined under | ||||||
3 | Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 . | ||||||
4 | "Underlying parcel" means a parcel of private property upon | ||||||
5 | which a removal activity was performed. | ||||||
6 | "Year" means a 365-day period. | ||||||
7 | (j) This Section applies only to liens filed after August | ||||||
8 | 14, 2009 (the effective date of Public Act 96-462).
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9 | (k) This Section shall not apply to a lien filed pursuant | ||||||
10 | to Section 11-20-15.1. | ||||||
11 | (Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10; | ||||||
12 | 96-1000, eff. 7-2-10.)
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13 | (65 ILCS 5/11-20-15.1)
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14 | Sec. 11-20-15.1. Lien for costs of removal, securing, and | ||||||
15 | enclosing on abandoned residential property. | ||||||
16 | (a) If the municipality elects to incur a removal cost | ||||||
17 | pursuant to subsection (d) of Section 11-20-7, subsection (d) | ||||||
18 | of Section 11-20-8, subsection (d) of Section 11-20-12, or | ||||||
19 | subsection (e) of Section 11-20-13, or subsection (i) of | ||||||
20 | Section 11-20-17, or a securing or enclosing cost pursuant to | ||||||
21 | Section 11-31-1.01 with respect to an abandoned residential | ||||||
22 | property, then that cost is a lien upon the underlying parcel | ||||||
23 | of that abandoned residential property. This lien is superior | ||||||
24 | to all other liens and encumbrances, except tax liens and as | ||||||
25 | otherwise provided in this Section. |
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1 | (b) To perfect a lien under this Section, the municipality | ||||||
2 | must, within one year after the cost is incurred for the | ||||||
3 | activity, file notice of the lien in the office of the recorder | ||||||
4 | in the county in which the abandoned residential property is | ||||||
5 | located or, if the abandoned residential property is registered | ||||||
6 | under the Torrens system, in the office of the Registrar of | ||||||
7 | Titles of that county, a sworn statement setting out: | ||||||
8 | (1) a description of the abandoned residential | ||||||
9 | property that sufficiently identifies the parcel; | ||||||
10 | (2) the amount of the cost of the activity; | ||||||
11 | (3) the date or dates when the cost for the activity | ||||||
12 | was incurred by the municipality; and | ||||||
13 | (4) a statement that the lien has been filed pursuant | ||||||
14 | to subsection (d) of Section 11-20-7, subsection (d) of | ||||||
15 | Section 11-20-8, subsection (d) of Section 11-20-12, | ||||||
16 | subsection (e) of Section 11-20-13, subsection (i) of | ||||||
17 | Section 11-20-17, or Section 11-31-1.01, as applicable. | ||||||
18 | If, for any abandoned residential property, the | ||||||
19 | municipality engaged in any activity on more than one occasion | ||||||
20 | during the course of one year, then the municipality may | ||||||
21 | combine any or all of the costs of each of those activities | ||||||
22 | into a single notice of lien. In order for a municipality to | ||||||
23 | perfect a lien for costs pursuant to Section 11-20-17 of this | ||||||
24 | Act, the municipality must first investigate and determine | ||||||
25 | that, pursuant to subsections (c) and (h) of this Section, the | ||||||
26 | underlying parcel is vacant and abandoned residential |
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1 | property. | ||||||
2 | (c) To enforce a lien pursuant to this Section, the | ||||||
3 | municipality must maintain contemporaneous records that | ||||||
4 | include, at a minimum: (i) a dated statement of finding by the | ||||||
5 | municipality that the property for which the work is to be | ||||||
6 | performed has become abandoned residential property, which | ||||||
7 | shall include (1) the date when the property was first known or | ||||||
8 | observed to be unoccupied by any lawful occupant or occupants, | ||||||
9 | (2) a description of the actions taken by the municipality to | ||||||
10 | contact the legal owner or owners of the property identified on | ||||||
11 | the recorded mortgage, or, if known, any agent of the owner or | ||||||
12 | owners, including the dates such actions were taken, and (3) a | ||||||
13 | statement that no contacts were made with the legal owner or | ||||||
14 | owners or their agents as a result of such actions, (ii) a | ||||||
15 | dated certification by an authorized official of the | ||||||
16 | municipality of the necessity and specific nature of the work | ||||||
17 | to be performed, (iii) a copy of the agreement with the person | ||||||
18 | or entity performing the work that includes the legal name of | ||||||
19 | the person or entity, the rate or rates to be charged for | ||||||
20 | performing the work, and an estimate of the total cost of the | ||||||
21 | work to be performed, (iv) detailed invoices and payment | ||||||
22 | vouchers for all payments made by the municipality for such | ||||||
23 | work, and (v) a statement as to whether the work was engaged | ||||||
24 | through a competitive bidding process, and if so, a copy of all | ||||||
25 | proposals submitted by the bidders for such work. | ||||||
26 | (d) A lien under this Section shall be enforceable |
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1 | exclusively at the hearing for confirmation of sale of the | ||||||
2 | abandoned residential property that is held pursuant to | ||||||
3 | subsection (b) of Section 15-1508 of the Code of Civil | ||||||
4 | Procedure and shall be limited to a claim of interest in the | ||||||
5 | proceeds of the sale and subject to the requirements of this | ||||||
6 | Section. Any mortgagee who holds a mortgage on the property, or | ||||||
7 | any beneficiary or trustee who holds a deed of trust on the | ||||||
8 | property, may contest the lien or the amount of the lien at any | ||||||
9 | time during the foreclosure proceeding upon motion and notice | ||||||
10 | in accordance with court rules applicable to motions generally. | ||||||
11 | Grounds for forfeiture of the lien or the superior status of | ||||||
12 | the lien granted by subsection (a) of this Section shall | ||||||
13 | include, but not be limited to, a finding by the court that: | ||||||
14 | (i) the municipality has not complied with subsection (b) or | ||||||
15 | (c) of this Section, (ii) the scope of the work was not | ||||||
16 | reasonable under the circumstances, (iii) the work exceeded the | ||||||
17 | authorization for the work to be performed under subsection (a) | ||||||
18 | of Section 11-20-7, subsection (a) of Section 11-20-8, | ||||||
19 | subsection (a) of Section 11-20-12, subsection (a) of Section | ||||||
20 | 11-20-13, or subsection (a) of Section 11-31-1.01, as | ||||||
21 | applicable, or (iv) the cost of the services rendered or | ||||||
22 | materials provided was not commercially reasonable. Forfeiture | ||||||
23 | of the superior status of the lien otherwise granted by this | ||||||
24 | Section shall not constitute a forfeiture of the lien as a | ||||||
25 | subordinate lien. | ||||||
26 | (e) Upon payment of the amount of a lien filed under this |
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1 | Section by the mortgagee, servicer, owner, or any other person, | ||||||
2 | the municipality shall release the lien, and the release may be | ||||||
3 | filed of record by the person making such payment at the | ||||||
4 | person's sole expense as in the case of filing notice of lien. | ||||||
5 | (f) Notwithstanding any other provision of this Section, a | ||||||
6 | municipality may not file a lien pursuant to this Section for | ||||||
7 | activities performed pursuant to Section 11-20-7, Section | ||||||
8 | 11-20-8, Section 11-20-12, Section 11-20-13, or Section | ||||||
9 | 11-31-1.01, if: (i) the mortgagee or servicer of the abandoned | ||||||
10 | residential property has provided notice to the municipality | ||||||
11 | that the mortgagee or servicer has performed or will perform | ||||||
12 | the remedial actions specified in the notice that the | ||||||
13 | municipality otherwise might perform pursuant to subsection | ||||||
14 | (d) of Section 11-20-7, subsection (d) of Section 11-20-8, | ||||||
15 | subsection (d) of Section 11-20-12, subsection (e) of Section | ||||||
16 | 11-20-13, or Section 11-31-1.01, provided that the remedial | ||||||
17 | actions specified in the notice have been performed or are | ||||||
18 | performed or initiated in good faith within 30 days of such | ||||||
19 | notice; or (ii) the municipality has provided notice to the | ||||||
20 | mortgagee or servicer of a problem with the property requiring | ||||||
21 | the remedial actions specified in the notice that the | ||||||
22 | municipality otherwise would perform pursuant to subsection | ||||||
23 | (d) of Section 11-20-7, subsection (d) of Section 11-20-8, | ||||||
24 | subsection (d) of Section 11-20-12, subsection (e) of Section | ||||||
25 | 11-20-13, or Section 11-31-1.01, and the mortgagee or servicer | ||||||
26 | has performed or performs or initiates in good faith the |
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1 | remedial actions specified in the notice within 30 days of such | ||||||
2 | notice. | ||||||
3 | (g) This Section and subsection (d) of Section 11-20-7, | ||||||
4 | subsection (d) of Section 11-20-8, subsection (d) of Section | ||||||
5 | 11-20-12, subsection (e) of Section 11-20-13, or Section | ||||||
6 | 11-31-1.01 shall apply only to activities performed, costs | ||||||
7 | incurred, and liens filed after the effective date of this | ||||||
8 | amendatory Act of the 96th General Assembly. Subsection (i) of | ||||||
9 | Section 11-20-17 shall apply only to activities performed, | ||||||
10 | costs incurred, and liens filed after the effective date of | ||||||
11 | this amendatory Act of the 97th General Assembly. | ||||||
12 | (h) For the purposes of this Section and subsection (d) of | ||||||
13 | Section 11-20-7, subsection (d) of Section 11-20-8, subsection | ||||||
14 | (d) of Section 11-20-12, subsection (e) of Section 11-20-13, | ||||||
15 | subsection (i) of Section 11-20-17, or Section 11-31-1.01: | ||||||
16 | "Abandoned residential property" means any type of | ||||||
17 | permanent residential dwelling unit, including detached single | ||||||
18 | family structures, and townhouses, condominium units and | ||||||
19 | multifamily rental apartments covering the entire property, | ||||||
20 | and manufactured homes treated under Illinois law as real | ||||||
21 | estate and not as personal property, that has been unoccupied | ||||||
22 | by any lawful occupant or occupants for at least 90 days, and | ||||||
23 | for which after such 90 day period, the municipality has made | ||||||
24 | good faith efforts to contact the legal owner or owners of the | ||||||
25 | property identified on the recorded mortgage, or, if known, any | ||||||
26 | agent of the owner or owners, and no contact has been made. A |
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1 | property for which the municipality has been given notice of | ||||||
2 | the order of confirmation of sale pursuant to subsection (b-10) | ||||||
3 | of Section 15-1508 of the Code of Civil Procedure shall not be | ||||||
4 | deemed to be an abandoned residential property for the purposes | ||||||
5 | of subsection (d) of Section 11-20-7, subsection (d) of Section | ||||||
6 | 11-20-8, subsection (d) of Section 11-20-12, subsection (e) of | ||||||
7 | Section 11-20-13, subsection (i) of Section 11-20-17, and | ||||||
8 | Section 11-31-1.01 of this Code. | ||||||
9 | "MERS program" means the nationwide Mortgage Electronic | ||||||
10 | Registration System approved by Fannie Mae, Freddie Mac, and | ||||||
11 | Ginnie Mae that has been created by the mortgage banking | ||||||
12 | industry with the mission of registering every mortgage loan in | ||||||
13 | the United States to lawfully make information concerning each | ||||||
14 | residential mortgage loan and the property securing it | ||||||
15 | available by Internet access to mortgage originators, | ||||||
16 | servicers, warehouse lenders, wholesale lenders, retail | ||||||
17 | lenders, document custodians, settlement agents, title | ||||||
18 | companies, insurers, investors, county recorders, units of | ||||||
19 | local government, and consumers. | ||||||
20 | (i) Any entity or person who performs a removal, securing, | ||||||
21 | or enclosing activity pursuant to the authority of a | ||||||
22 | municipality under subsection (d) of Section 11-20-7, | ||||||
23 | subsection (d) of Section 11-20-8, subsection (d) of Section | ||||||
24 | 11-20-12, subsection (e) of Section 11-20-13, or Section | ||||||
25 | 11-31-1.01, may, in its, his, or her own name, file a lien | ||||||
26 | pursuant to subsection (b) of this Section and appear in a |
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1 | foreclosure action on that lien pursuant to subsection (d) of | ||||||
2 | this Section in the place of the municipality, provided that | ||||||
3 | the municipality shall remain subject to subsection (c) of this | ||||||
4 | Section, and such party shall be subject to all of the | ||||||
5 | provisions in this Section as if such party were the | ||||||
6 | municipality. | ||||||
7 | (i-5) All amounts received by the municipality for costs | ||||||
8 | incurred pursuant to this Section
for which the municipality | ||||||
9 | has been reimbursed under Section 7.31 of the Illinois Housing | ||||||
10 | Development Act
shall be remitted to the State Treasurer for | ||||||
11 | deposit into the Abandoned Residential Property
Municipality | ||||||
12 | Relief Fund. | ||||||
13 | (j) If prior to subsection (d) of Section 11-20-7, | ||||||
14 | subsection (d) of Section 11-20-8, subsection (d) of Section | ||||||
15 | 11-20-12, and subsection (e) of Section 11-20-13 becoming | ||||||
16 | inoperative a lien is filed pursuant to any of those | ||||||
17 | subsections, then the lien shall remain in full force and | ||||||
18 | effect after the subsections have become inoperative, subject | ||||||
19 | to all of the provisions of this Section. If prior to the | ||||||
20 | repeal of Section 11-31-1.01 a lien is filed pursuant to | ||||||
21 | Section 11-31-1.01, then the lien shall remain in full force | ||||||
22 | and effect after the repeal of Section 11-31-1.01, subject to | ||||||
23 | all of the provisions of this Section.
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24 | (Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)
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25 | (65 ILCS 5/11-20-17 new) |
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1 | Sec. 11-20-17. Vacant property. | ||||||
2 | (a) For the purposes of minimizing the hazards to persons | ||||||
3 | and property resulting from vacant property, the corporate | ||||||
4 | authorities of each municipality may, by ordinance, prescribe | ||||||
5 | rules or regulations for the maintenance and security of vacant | ||||||
6 | property. The corporate authorities of a municipality may | ||||||
7 | impose registration fees for vacant property and fines for | ||||||
8 | failure to comply with ordinances enacted pursuant to this | ||||||
9 | Section. | ||||||
10 | (b) Pursuant to those ordinances, the corporate | ||||||
11 | authorities of each municipality, upon directing a notice of | ||||||
12 | its determination and finding that the underlying parcel is | ||||||
13 | vacant and abandoned residential property by regular or | ||||||
14 | certified mail, may hold responsible for maintaining and | ||||||
15 | securing a vacant property (i) any owner of the property, (ii) | ||||||
16 | any previous owner of the property who conveyed the property | ||||||
17 | during the time it was vacant and failed to comply with any | ||||||
18 | ordinance regarding the registration of vacant property, (iii) | ||||||
19 | any trust beneficiary or other trustee who holds a deed of | ||||||
20 | trust on the property, (iv) any mortgagee who holds a mortgage | ||||||
21 | on the property, and (v) any assignee of an owner, beneficiary, | ||||||
22 | trustee, or mortgagee. | ||||||
23 | (c) Upon delivery of the notice provided in subsection (b), | ||||||
24 | a beneficiary, trustee, or mortgagee seeking to comply with | ||||||
25 | ordinances regarding the maintenance or security of vacant | ||||||
26 | property may enter that property to remedy any potential |
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1 | violation of an ordinance to maintain or secure vacant property | ||||||
2 | without an order for possession under the Illinois Mortgage | ||||||
3 | Foreclosure Act, provided that entry is not barred by an | ||||||
4 | automatic stay issued by a bankruptcy court. | ||||||
5 | (d) Beneficiaries, trustees, mortgagees, and their agents | ||||||
6 | and assignees shall be held harmless from and against all | ||||||
7 | claims of negligence, civil trespass, and criminal trespass in | ||||||
8 | connection with compliance activity under the ordinances for | ||||||
9 | the maintenance or security of vacant property, provided that | ||||||
10 | the person authorizing or engaging in the compliance activity | ||||||
11 | has (i) made a good faith effort to identify any owner and | ||||||
12 | occupant of the property and (ii) made a good faith effort to | ||||||
13 | contact any owner and occupant in a manner reasonably | ||||||
14 | calculated to give the owner and occupant notice that the | ||||||
15 | compliance activity is imminent, after the notice provided by | ||||||
16 | subsection (b) has been delivered. | ||||||
17 | (e) For the purpose of this Section, "owner" means the | ||||||
18 | legal or beneficial owner of an improved or unimproved parcel | ||||||
19 | of real estate. | ||||||
20 | (f) For the purpose of this Section, "mortgagee" means (i) | ||||||
21 | the holder of an indebtedness, the obligee of a non-monetary | ||||||
22 | obligation secured by a mortgage, any assignee of the mortgage, | ||||||
23 | or any person designated or authorized to act on behalf of such | ||||||
24 | holder, (ii) any person or entity who previously initiated a | ||||||
25 | foreclosure of the vacant property or obtained a foreclosure | ||||||
26 | judgment against the vacant property if the deed to vacant |
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1 | property has not been transferred to the purchaser at the | ||||||
2 | judicial sale, and (iii) any person claiming through a | ||||||
3 | mortgagee as successor. | ||||||
4 | (g) For the purpose of this Section, "vacant property" | ||||||
5 | means any property having complete or incomplete structures | ||||||
6 | that are empty or otherwise uninhabited by persons legally | ||||||
7 | entitled to inhabit the structures. | ||||||
8 | (h) For the purpose of this Section, "removal cost" means | ||||||
9 | the total value of fees and fines imposed pursuant to rules, | ||||||
10 | regulations, or ordinances regarding maintenance, security, or | ||||||
11 | demolition of vacant property. | ||||||
12 | (i) To enforce fees and fines pursuant to this Section, a | ||||||
13 | municipality has the following options: (i) the municipality | ||||||
14 | may elect to obtain a lien upon the underlying property for the | ||||||
15 | removal cost in accordance with Section 11-20-15; (ii) in the | ||||||
16 | case of an abandoned residential property as defined in Section | ||||||
17 | 11-20-15.1, the municipality may elect to obtain a lien for the | ||||||
18 | removal cost pursuant to Section 11-20-15.1, in which case the | ||||||
19 | provisions of Section 11-20-15.1 shall be the exclusive remedy | ||||||
20 | for the removal cost; or (iii) the municipality may elect to | ||||||
21 | obtain a lien for the removal cost by exercising any | ||||||
22 | enforcement actions available under its police powers or other | ||||||
23 | statutory grant of authority. | ||||||
24 | (j) Nothing in this Section prohibits a municipality from | ||||||
25 | obtaining and enforcing liens pursuant to any other local, | ||||||
26 | State, or federal law.
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1 | Section 10. The Code of Civil Procedure is amended by | ||||||
2 | changing Section 15-1603 as follows:
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3 | (735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
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4 | Sec. 15-1603. Redemption.
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5 | (a) Owner of Redemption. Except as
provided in subsection | ||||||
6 | (b) of Section 15-1402, only an owner of redemption
may redeem | ||||||
7 | from the foreclosure, and such owner of redemption may redeem
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8 | only during the redemption period specified in subsection (b) | ||||||
9 | of Section
15-1603 and only if the right of redemption has not | ||||||
10 | been validly waived.
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11 | (b) Redemption Period.
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12 | (1) In the foreclosure of a mortgage of
real estate | ||||||
13 | which is residential real estate at the time the | ||||||
14 | foreclosure
is commenced, the redemption period shall end | ||||||
15 | on the later of
(i) the date 7 months from the date the | ||||||
16 | mortgagor or, if more than one, all
the mortgagors (A) have | ||||||
17 | been served with summons or by publication or (B)
have | ||||||
18 | otherwise submitted to the jurisdiction of the court, or | ||||||
19 | (ii) the date
3 months from the date of entry of a judgment | ||||||
20 | of foreclosure.
| ||||||
21 | (2) In all other foreclosures, the redemption period | ||||||
22 | shall end on the later of
(i) the date 6 months from the | ||||||
23 | date the mortgagor or, if more than one,
all the mortgagors | ||||||
24 | (A) have been served with summons or by publication or
(B) |
| |||||||
| |||||||
1 | have otherwise submitted to the jurisdiction of the court, | ||||||
2 | or (ii) the
date 3 months from the date of entry of a | ||||||
3 | judgment of foreclosure.
| ||||||
4 | (3) Notwithstanding paragraphs (1) and (2),
the | ||||||
5 | redemption period shall end at the later
of the expiration | ||||||
6 | of any reinstatement period provided for in Section
15-1602 | ||||||
7 | or the date 60 days after the date the judgment of | ||||||
8 | foreclosure is
entered, if the court finds that (i) the | ||||||
9 | value of
the mortgaged real estate as of the date of the | ||||||
10 | judgment is less than 90%
of the amount specified pursuant | ||||||
11 | to subsection (d) of Section 15-1603 and
(ii) the mortgagee | ||||||
12 | waives any and all rights to a personal judgment for a
| ||||||
13 | deficiency against the mortgagor and against all other | ||||||
14 | persons liable for
the indebtedness or other obligations | ||||||
15 | secured by the mortgage.
| ||||||
16 | (4) Notwithstanding paragraphs (1) and (2),
the | ||||||
17 | redemption period shall end on the date 30
days after the | ||||||
18 | date the judgment of foreclosure is entered if , upon motion | ||||||
19 | and notice in accordance with court rules applicable to | ||||||
20 | motions generally,
the court finds that the mortgaged real | ||||||
21 | estate has
been abandoned. In cases where the redemption | ||||||
22 | period is shortened on
account of abandonment, the | ||||||
23 | reinstatement period shall not extend beyond
the | ||||||
24 | redemption period as shortened.
| ||||||
25 | (A) The court may find that the mortgaged real | ||||||
26 | estate has been abandoned if evidence is presented |
| |||||||
| |||||||
1 | supporting the fact that the mortgaged property has | ||||||
2 | been abandoned. The court may not find that the | ||||||
3 | mortgaged real estate has been abandoned if an | ||||||
4 | appearance has been made and an objection has been | ||||||
5 | filed to the finding that the property has been | ||||||
6 | abandoned, or if the owner provides evidence that the | ||||||
7 | owner is working with, or making an attempt to work | ||||||
8 | with, the mortgagee to modify the mortgage. | ||||||
9 | (B) To determine that a property has been | ||||||
10 | abandoned, the court must find the following, based on | ||||||
11 | evidence presented by the moving party: | ||||||
12 | (i) the mortgaged property is not actually | ||||||
13 | occupied; and | ||||||
14 | (ii) at least one of the following applies: | ||||||
15 | (aa) more than 5 attempts to contact the | ||||||
16 | mortgagor have been made, at least one by | ||||||
17 | certified mail and one by telephone, if there | ||||||
18 | is a working telephone number for the | ||||||
19 | mortgagor; and at least 2 of the following | ||||||
20 | supporting facts are true: | ||||||
21 | (I) construction was initiated on the | ||||||
22 | property and was discontinued prior to | ||||||
23 | completion, leaving the building | ||||||
24 | unsuitable for occupancy, and no | ||||||
25 | construction has taken place for at least 6 | ||||||
26 | months; |
| |||||||
| |||||||
1 | (II) the property has had more than | ||||||
2 | one uncorrected municipal code violation | ||||||
3 | over the past year, or has been declared | ||||||
4 | unfit for occupancy and ordered to remain | ||||||
5 | vacant and unoccupied by the municipal | ||||||
6 | authorities; | ||||||
7 | (III) gas, electric, or water service | ||||||
8 | to the entire premises has been | ||||||
9 | terminated; | ||||||
10 | (IV) windows or entrances to the | ||||||
11 | premises are boarded up or closed off, or | ||||||
12 | multiple window panes are broken and | ||||||
13 | unrepaired; | ||||||
14 | (V) doors to the premises are smashed | ||||||
15 | through, broken off, unhinged, or | ||||||
16 | continuously unlocked; | ||||||
17 | (VI) the police or sheriff's office | ||||||
18 | has received at least 2 reports of | ||||||
19 | trespassers on the premises or of | ||||||
20 | vandalism or other illegal acts being | ||||||
21 | committed on the premises in the past 6 | ||||||
22 | months; | ||||||
23 | (bb) 2 or more attempts to contact the | ||||||
24 | mortgagor have been made and there exist | ||||||
25 | written statements of the mortgagor, the | ||||||
26 | mortgagor's personal representatives or |
| |||||||
| |||||||
1 | assigns, including documents of conveyance, | ||||||
2 | which indicate a clear intent to abandon the | ||||||
3 | premises; or | ||||||
4 | (cc) 2 or more attempts to contact the | ||||||
5 | mortgagor have been made and the property is a | ||||||
6 | vacant lot. | ||||||
7 | (c) Extension of Redemption Period.
| ||||||
8 | (1) Once expired, the right of redemption provided for | ||||||
9 | in Sections
15-1603 or 15-1604 shall not be revived. The | ||||||
10 | period within which the right of
redemption provided for in | ||||||
11 | Sections 15-1603 or 15-1604 may be exercised runs
| ||||||
12 | independently of any action by any person to enforce the | ||||||
13 | judgment of
foreclosure or effect a sale pursuant thereto. | ||||||
14 | Neither the initiation of
any legal proceeding nor the | ||||||
15 | order of any court staying the enforcement of
a judgment of | ||||||
16 | foreclosure or the sale pursuant to a judgment or the
| ||||||
17 | confirmation of the sale, shall have the effect of tolling | ||||||
18 | the running of
the redemption period.
| ||||||
19 | (2) If a court has the authority to stay, and does | ||||||
20 | stay, the running of
the redemption period, or if the | ||||||
21 | redemption period is extended by any
statute of the United | ||||||
22 | States, the redemption period shall be extended until
the | ||||||
23 | expiration of the same number of days after the expiration | ||||||
24 | of the stay
order as the number of days remaining in the | ||||||
25 | redemption period at the time
the stay order became | ||||||
26 | effective, or, if later, until the expiration of 30
days |
| |||||||
| |||||||
1 | after the stay order terminates. If the stay
order | ||||||
2 | terminates more than 30 days prior to the expiration of the
| ||||||
3 | redemption period, the redemption period shall not be | ||||||
4 | extended.
| ||||||
5 | (d) Amount Required to Redeem. The amount required to | ||||||
6 | redeem shall be the sum of:
| ||||||
7 | (1) The amount specified in the judgment of | ||||||
8 | foreclosure, which shall
consist of (i) all principal and | ||||||
9 | accrued interest secured by the mortgage
and due as of the | ||||||
10 | date of the judgment, (ii) all costs allowed by law,
(iii) | ||||||
11 | costs and expenses approved by the court, (iv) to the | ||||||
12 | extent provided
for in the mortgage and approved by the | ||||||
13 | court, additional costs, expenses
and reasonable | ||||||
14 | attorneys' fees incurred by the mortgagee, (v) all amounts
| ||||||
15 | paid pursuant to Section 15-1505 and (vi) per diem interest | ||||||
16 | from the date
of judgment to the date of redemption | ||||||
17 | calculated at the mortgage rate of
interest applicable as | ||||||
18 | if no default had occurred; and
| ||||||
19 | (2) The amount of other expenses authorized by the | ||||||
20 | court which the
mortgagee reasonably incurs between the | ||||||
21 | date of judgment and the date of
redemption, which shall be | ||||||
22 | the amount certified by the mortgagee in
accordance with | ||||||
23 | subsection (e) of Section 15-1603.
| ||||||
24 | (e) Notice of Intent to Redeem. An owner of redemption who | ||||||
25 | intends to
redeem shall give written notice of such intent to | ||||||
26 | redeem to the
mortgagee's attorney of record specifying the |
| |||||||
| |||||||
1 | date designated for
redemption and the current address of the | ||||||
2 | owner of redemption for purposes
of receiving notice. Such | ||||||
3 | owner of redemption shall file with the clerk of
the court a | ||||||
4 | certification of the giving of such notice. The notice of
| ||||||
5 | intent to redeem must be received by the mortgagee's attorney | ||||||
6 | at least 15
days (other than Saturday, Sunday or court holiday) | ||||||
7 | prior to the date
designated for redemption. The mortgagee | ||||||
8 | shall thereupon file with the
clerk of the court and shall give | ||||||
9 | written notice to the owner of redemption
at least three days | ||||||
10 | (other than Saturday, Sunday or court holiday) before
the date | ||||||
11 | designated for redemption a certification,
accompanied by | ||||||
12 | copies of paid receipts or appropriate affidavits, of
any | ||||||
13 | expenses authorized in paragraph (2) of subsection (d) of | ||||||
14 | Section
15-1603. If the mortgagee fails
to serve such | ||||||
15 | certification within the time specified herein, then the owner
| ||||||
16 | of redemption intending to redeem may redeem on the date | ||||||
17 | designated for
redemption in the notice of intent to redeem, | ||||||
18 | and the mortgagee shall not
be entitled to payment of any | ||||||
19 | expenses authorized in paragraph (2) of
subsection (d) of | ||||||
20 | Section 15-1603.
| ||||||
21 | (f) Procedure for Redemption.
| ||||||
22 | (1) An owner of redemption may redeem
the real estate | ||||||
23 | from the foreclosure by paying the amount specified in
| ||||||
24 | subsection (d) of Section 15-1603 to the mortgagee or the | ||||||
25 | mortgagee's
attorney of record on or before the date | ||||||
26 | designated for redemption pursuant
to subsection (e) of |
| |||||||
| |||||||
1 | Section 15-1603.
| ||||||
2 | (2) If the mortgagee refuses to accept payment or if | ||||||
3 | the owner of
redemption redeeming from the foreclosure | ||||||
4 | objects to the reasonableness of
the additional expenses | ||||||
5 | authorized in paragraph (2) of subsection (d) of
Section | ||||||
6 | 15-1603 and certified in accordance with subsection (e) of | ||||||
7 | Section
15-1603, the owner of redemption shall pay
the | ||||||
8 | certified amount to the clerk of the court on or before the | ||||||
9 | date
designated for redemption, together with a written | ||||||
10 | statement specifying the
expenses to which objection is | ||||||
11 | made. In such case the clerk shall pay to the
mortgagee the | ||||||
12 | amount tendered minus the amount to which the objection | ||||||
13 | pertains.
| ||||||
14 | (3) Upon payment to the clerk, whether or not the owner | ||||||
15 | of redemption
files an objection at the time of payment, | ||||||
16 | the clerk shall give a receipt
of payment to the person | ||||||
17 | redeeming from the foreclosure, and shall file a
copy of | ||||||
18 | that receipt in the foreclosure record. Upon receipt of the
| ||||||
19 | amounts specified to be paid to the mortgagee pursuant to | ||||||
20 | this Section, the
mortgagee shall promptly furnish the | ||||||
21 | mortgagor with a release of the
mortgage or satisfaction of | ||||||
22 | the judgment, as appropriate, and the evidence
of all | ||||||
23 | indebtedness secured by the mortgage shall be cancelled.
| ||||||
24 | (g) Procedure Upon Objection. If an objection is filed by | ||||||
25 | an owner of
redemption in accordance with paragraph (2) of | ||||||
26 | subsection (f) of Section
15-1603, the clerk shall hold the |
| |||||||
| |||||||
1 | amount to which the objection pertains
until the court orders | ||||||
2 | distribution of those funds. The court shall hold a
hearing | ||||||
3 | promptly to determine the distribution of any funds held by the
| ||||||
4 | clerk pursuant to such objection. Each party shall pay its own | ||||||
5 | costs and
expenses in connection with any objection, including | ||||||
6 | attorneys' fees,
subject to Section 2-611 of the Code of Civil | ||||||
7 | Procedure.
| ||||||
8 | (h) Failure to Redeem. Unless the real estate being | ||||||
9 | foreclosed is redeemed
from the foreclosure, it shall be sold | ||||||
10 | as provided in this Article.
| ||||||
11 | (i) Mortgagees electing to release, discharge, or abandon | ||||||
12 | their mortgage interest in any property shall execute a binding | ||||||
13 | written release declaring their discharge of the related lien | ||||||
14 | and shall, within 30 days, record the release as provided in | ||||||
15 | Section 28 of the Conveyances Act. The failure to record a | ||||||
16 | written release creates a presumption that the mortgagee of | ||||||
17 | record, or any of its, his, or her successors in interest, has | ||||||
18 | knowingly interfered, delayed, and prevented the enforcement | ||||||
19 | of any municipal ordinance concerning property. | ||||||
20 | (Source: P.A. 86-974.)
| ||||||
21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
|