(735 ILCS 5/Art. XV heading)
ARTICLE XV
MORTGAGE FORECLOSURE
(735 ILCS 5/Art. XV Pt. 11 heading)
Part 11. General Provisions
(735 ILCS 5/15-1101) (from Ch. 110, par. 15-1101)
Sec. 15-1101. Title. This Article shall be known, and may be cited, as the Illinois Mortgage
Foreclosure Law.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1102) (from Ch. 110, par. 15-1102)
Sec. 15-1102. Enforcement. The Court has full power to enforce any order entered pursuant to
this Article by contempt process or by such other order as may be appropriate.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1103) (from Ch. 110, par. 15-1103)
Sec. 15-1103. Jurisdiction. The authority of the court continues during the entire pendency of
the foreclosure and until disposition of all matters arising out of the foreclosure.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1104) (from Ch. 110, par. 15-1104)
Sec. 15-1104. Wrongful Inducement of Abandonment. Any person who willfully
misrepresents to the Court any fact resulting in a finding of abandonment of mortgaged real
estate in connection with subsection (b) of Section 15-1603 or subsection (d) of Section 15-1706
of this Article or who threatens to injure the person or property of occupants of mortgaged real
estate, or who knowingly gives such occupants false and misleading information, or who
harasses or intimidates such occupants, with the intent of inducing such occupants to abandon
the mortgaged premises, in order to obtain a finding of abandonment under subsection (b) of
Section 15-1603 or subsection (d) of Section 15-1706 of this Article, shall be guilty of a Class B
misdemeanor.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1105) (from Ch. 110, par. 15-1105)
Sec. 15-1105. Interpretation. (a) "May." The word "may" as used in this Article means
permissive and not mandatory.
(b) "Shall." The word "shall" as used in this Article means mandatory and not permissive.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1106) (from Ch. 110, par. 15-1106)
Sec. 15-1106. Applicability of Article. (a) Exclusive Procedure. From and after the effective
date of this amendatory Act of 1986, the following shall be foreclosed in a foreclosure pursuant
to this Article:
(1) any mortgage created prior to, on or after the effective date of this amendatory Act of
1986;
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(2) any real estate installment contract for residential real estate entered into on or after the
effective date of this amendatory Act of 1986 and under which (i) the purchase price is to be paid
in installments over a period in excess of five years and (ii) the amount unpaid under the terms of
the contract at the time of the filing of the foreclosure complaint, including principal and due and
unpaid interest, at the rate prior to default, is less than 80% of the original purchase price of the
real estate as stated in the contract;
(3) any collateral assignment of beneficial interest made on or after the effective date of this
amendatory Act of 1986 (i) which is made with respect to a land trust which was created
contemporaneously with the collateral assignment of beneficial interest, (ii) which is made
pursuant to a requirement of the holder of the obligation to secure the payment of money or
performance of other obligations and (iii) as to which the security agreement or other writing
creating the collateral assignment permits the real estate which is the subject of the land trust to
be sold to satisfy the obligations.
(b) Uniform Commercial Code. A secured party, as defined in Article 9 of the Uniform
Commercial Code, may at its election enforce its security interest in a foreclosure under this
Article if its security interest was created on or after the effective date of this amendatory Act of
1986 and is created by (i) a collateral assignment of beneficial interest in a land trust or (ii) an
assignment for security of a buyer’s interest in a real estate installment contract. Such election
shall be made by filing a complaint stating that it is brought under this Article, in which event the
provisions of this Article shall be exclusive in such foreclosure.
(c) Real Estate Installment Contracts. A contract seller may at its election enforce in a
foreclosure under this Article any real estate installment contract entered into on or after the
effective date of this Amendatory Act of 1986 and not required to be foreclosed under this
Article. Such election shall be made by filing a complaint stating that it is brought under this
Article, in which event the provisions of this Article shall be exclusive in such foreclosure. A
contract seller must enforce its contract under this Article if the real estate installment contract is
one described in paragraph (2) of subsection (a) of Section 15-1106.
(d) Effect of Election. An election made pursuant to subsection (b) or (c) of Section 15-1106
shall be binding only in the foreclosure and shall be void if the foreclosure is terminated prior to
entry of judgment.
(e) Supplementary General Principles of Law. General principles of law and equity, such as
those relating to capacity to contract, principal and agent, marshalling of assets, priority,
subrogation, estoppel, fraud, misrepresentations, duress, collusion, mistake, bankruptcy or other
validating or invalidating cause, supplement this Article unless displaced by a particular
provision of it. Section 9-110 of the Code of Civil Procedure shall not be applicable to any real
estate installment contract which is foreclosed under this Article.
(f) Pending Actions. A complaint to foreclose a mortgage filed before July 1, 1987, and all
proceedings and third party actions in connection therewith, shall be adjudicated pursuant to the
Illinois statutes and applicable law in effect immediately prior to July 1, 1987. Such statutes shall
remain in effect with respect to such complaint, proceedings and third party actions
notwithstanding the amendment or repeal of such statutes on or after July 1, 1987.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1107) (from Ch. 110, par. 15-1107)
Sec. 15-1107. Mode of Procedure.
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(a) Other Statutes. Except as otherwise provided in this Article, the mode of procedure,
including the manner of service of pleadings and other papers and service by publication, shall
be in accordance with the provisions of Article II of the Illinois Code of Civil Procedure and any
other statutes of this State which are from time to time applicable, and with Illinois Supreme
Court Rules applicable to actions generally or otherwise applicable. If a mortgage lien is being
foreclosed under this Article and one or more non-mortgage liens or encumbrances is being
foreclosed or enforced in the same proceedings, then, regardless of the respective priorities of the
various liens or encumbrances, the procedures and all other provisions of this Article shall
govern such proceedings, and any inconsistent statutory provisions shall not be applicable.
Without limiting the foregoing, any provision of Article XII or any other Article of the Code of
Civil Procedure shall apply unless inconsistent with this Article and, in case of such
inconsistency, shall not be applicable to actions under this Article.
(b) Mechanics’ Liens. Mechanics’ liens shall be enforced as provided in the Mechanics Lien
Act; provided, however, that any mechanics’ lien claimant may assert such lien in a foreclosure
under this Article, may intervene in such foreclosure in accordance with this Article and may be
made a party in such foreclosure.
(c) Instruments Deemed a Mortgage. For the purpose of proceeding under this Article, any
instrument described in paragraph (2) or (3) of subsection (a) of Section 15-1106, or in
subsection (b) or (c) of Section 15-1106 which is foreclosed under this Article shall be deemed a
mortgage. For such purpose, the real estate installment contract purchaser, the assignor of the
beneficial interest in the land trust and the debtor, as appropriate, shall be deemed the mortgagor,
and the real estate installment contract seller, the assignee of the beneficial interest in the land
trust and the secured party, as appropriate, shall be deemed the mortgagee.
(Source: P.A. 96-328, eff. 8-11-09.)
(735 ILCS 5/15-1108)
Sec. 15-1108. Declaration of policy relating to abandoned residential property. The following
findings directly relate to the changes made by this amendatory Act of the 97th General
Assembly. The General Assembly finds that residential mortgage foreclosures and the
abandoned properties that sometimes follow create enormous challenges for Illinois residents,
local governments, and the courts, reducing neighboring property values, reducing the tax base,
increasing crime, placing neighbors at greater risk of foreclosure, imposing additional costs on
local governments, and increasing the burden on the courts of this State; conversely, maintaining
and securing abandoned properties stabilizes property values and the tax base, decreases crime,
reduces the risk of foreclosure for nearby properties, thus reducing costs for local governments
and making a substantial contribution to the operation and maintenance of the courts of this State
by reducing the volume of matters which burden the court system in this State. The General
Assembly further finds that the average foreclosure case for residential property takes close to 2
years in Illinois; when a property is abandoned, the lengthy foreclosure process harms lienholders, neighbors, and local governments, and imposes significant and unnecessary burdens on
the courts of this State; and an expedited foreclosure process for abandoned residential property
can also help the courts of this State by decreasing the volume of foreclosure cases and allowing
these cases to proceed more efficiently through the court system. The General Assembly further
finds that housing counseling has proven to be an effective way to help many homeowners find
alternatives to foreclosure; and that housing counseling therefore also reduces the volume of
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matters which burden the court system in this State and allows the courts to more efficiently
handle the burden of foreclosure cases.
(Source: P.A. 97-1164, eff. 6-1-13.)
(735 ILCS 5/Art. XV Pt. 12 heading)
Part 12. Definitions
(735 ILCS 5/15-1200.5)
Sec. 15-1200.5. Abandoned residential property. "Abandoned residential property" means
residential real estate that:
(a) either:
(1) is not occupied by any mortgagor or lawful occupant as a principal residence; or
(2) contains an incomplete structure if the real estate is zoned for residential development,
where the structure is empty or otherwise uninhabited and is in need of maintenance, repair, or
securing; and
(b) with respect to which either:
(1) two or more of the following conditions are shown to exist:
(A) construction was initiated on the property and was discontinued prior to completion,
leaving a building unsuitable for occupancy, and no construction has taken place for at least 6
months;
(B) multiple windows on the property are boarded up or closed off or are smashed
through, broken off, or unhinged, or multiple window panes are broken and unrepaired;
(C) doors on the property are smashed through, broken off, unhinged, or continuously
unlocked;
(D) the property has been stripped of copper or other materials, or interior fixtures to the
property have been removed;
(E) gas, electrical, or water services to the entire property have been terminated;
(F) there exist one or more written statements of the mortgagor or the mortgagor’s
personal representative or assigns, including documents of conveyance, which indicate a clear
intent to abandon the property;
(G) law enforcement officials have received at least one report of trespassing or
vandalism or other illegal acts being committed at the property in the last 6 months;
(H) the property has been declared unfit for occupancy and ordered to remain vacant and
unoccupied under an order issued by a municipal or county authority or a court of competent
jurisdiction;
(I) the local police, fire, or code enforcement authority has requested the owner or other
interested or authorized party to secure or winterize the property due to the local authority
declaring the property to be an imminent danger to the health, safety, and welfare of the public;
(J) the property is open and unprotected and in reasonable danger of significant damage
due to exposure to the elements, vandalism, or freezing; or
(K) there exists other evidence indicating a clear intent to abandon the property; or
(2) the real estate is zoned for residential development and is a vacant lot that is in need of
maintenance, repair, or securing.
(Source: P.A. 97-1164, eff. 6-1-13.)
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(735 ILCS 5/15-1200.7)
Sec. 15-1200.7. Abandoned residential property; exceptions. A property shall not be
considered abandoned residential property if: (i) there is an unoccupied building which is
undergoing construction, renovation, or rehabilitation that is proceeding diligently to completion,
and the building is in substantial compliance with all applicable ordinances, codes, regulations,
and laws; (ii) there is a building occupied on a seasonal basis, but otherwise secure; (iii) there is
a secure building on which there are bona fide rental or sale signs; (iv) there is a building that is
secure, but is the subject of a probate action, action to quiet title, or other ownership dispute; or
(v) there is a building that is otherwise secure and in substantial compliance with all applicable
ordinances, codes, regulations, and laws.
(Source: P.A. 97-1164, eff. 6-1-13.)
(735 ILCS 5/15-1201) (from Ch. 110, par. 15-1201)
Sec. 15-1201. Agricultural Real Estate. "Agricultural real estate" means real estate which is
used primarily (i) for the growing and harvesting of crops, (ii) for the feeding, breeding and
management of livestock, (iii) for dairying, or (iv) for any other agricultural or horticultural use
or combination thereof, including without limitation, aquaculture, silviculture, and any other
activities customarily engaged in by persons engaged in the business of farming.
(Source: P.A. 95-331, eff. 8-21-07.)
(735 ILCS 5/15-1202) (from Ch. 110, par. 15-1202)
Sec. 15-1202. Collateral Assignment of Beneficial Interest. "Collateral assignment of
beneficial interest" means any pledge or assignment of the beneficial interest in a land trust to
any person to secure a debt or other obligation.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1202.5)
Sec. 15-1202.5. Dwelling unit. For the purposes of Sections 9-207.5, 15-1224, 15-1225, 151506, 15-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704 only, "dwelling unit" means a room
or suite of rooms providing complete, independent living facilities for at least one person,
including permanent provisions for sanitation, cooking, eating, sleeping, and other activities
routinely associated with daily life.
(Source: P.A. 97-575, eff. 8-26-11; 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1203) (from Ch. 110, par. 15-1203)
Sec. 15-1203. Foreclosure. "Foreclosure" means an action commenced under this Article and
"to foreclose" means to terminate legal and equitable interests in real estate pursuant to a
foreclosure.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1204) (from Ch. 110, par. 15-1204)
Sec. 15-1204. Guarantor. "Guarantor" means any person who has undertaken to pay any
indebtedness or perform any obligation of a mortgagor under a mortgage or of any other person
who owes payment or the performance of other obligations secured by the mortgage, which
undertaking is made by a guaranty or surety agreement of any kind.
(Source: P.A. 84-1462.)
5
(735 ILCS 5/15-1205) (from Ch. 110, par. 15-1205)
Sec. 15-1205. Land Trust. "Land trust" means any trust arrangement under which the legal and
equitable title to real estate is held by a trustee, the interest of the beneficiary of the trust is
personal property and the beneficiary or any person designated in writing by the beneficiary has
(i) the exclusive power to direct or control the trustee in dealing with the title to the trust
property, (ii) the exclusive control of the management, operation, renting and selling of the trust
property and (iii) the exclusive right to the earnings, avails and proceeds of the trust property.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1206) (from Ch. 110, par. 15-1206)
Sec. 15-1206. Mechanics’ Lien. "Mechanics’ lien" or "mechanics’ lien claim" means a lien or
claim arising under the Mechanics Lien Act.
(Source: P.A. 96-328, eff. 8-11-09.)
(735 ILCS 5/15-1207) (from Ch. 110, par. 15-1207)
Sec. 15-1207. Mortgage. "Mortgage" means any consensual lien created by a written
instrument which grants or retains an interest in real estate to secure a debt or other obligation.
The term "mortgage" includes, without limitation:
(a) mortgages securing "reverse mortgage" loans as authorized by subsection (a) of Section 5
of the Illinois Banking Act;
(b) mortgages securing "revolving credit" loans as authorized by subsection (c) of Section 5 of
the Illinois Banking Act, Section 1-6b of the Illinois Savings and Loan Act and Section 46 of the
Illinois Credit Union Act;
(c) every deed conveying real estate, although an absolute conveyance in its terms, which shall
have been intended only as a security in the nature of a mortgage;
(d) equitable mortgages; and
(e) instruments which would have been deemed instruments in the nature of a mortgage prior
to the effective date of this amendatory Act of 1987.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1208) (from Ch. 110, par. 15-1208)
Sec. 15-1208. Mortgagee. "Mortgagee" means (i) the holder of an indebtedness or obligee of a
non-monetary obligation secured by a mortgage or any person designated or authorized to act on
behalf of such holder and (ii) any person claiming through a mortgagee as successor.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1209) (from Ch. 110, par. 15-1209)
Sec. 15-1209. Mortgagor. "Mortgagor" means (i) the person whose interest in the real estate is
the subject of the mortgage and (ii) any person claiming through a mortgagor as successor.
Where a mortgage is executed by a trustee of a land trust, the mortgagor is the trustee and not the
beneficiary or beneficiaries.
(Source: P.A. 85-907.)
6
(735 ILCS 5/15-1210) (from Ch. 110, par. 15-1210)
Sec. 15-1210. Nonrecord Claimant. "Nonrecord claimant" means any person (i) who has or
claims to have an interest in mortgaged real estate, (ii) whose name or interest, at the time a
notice of foreclosure is recorded in accordance with Section 15-1503, is not disclosed of record
either (1) by means of a recorded notice or (2) by means of a proceeding which under the law as
in effect at the time the foreclosure is commenced would afford constructive notice of the
existence of such interest and (iii) whose interest falls in any of the following categories: (1)
right of homestead, (2) judgment creditor, (3) beneficial interest under any trust other than the
beneficial interest of a beneficiary of a trust in actual possession of all or part of the real estate or
(4) mechanics’ lien claim. Notwithstanding the foregoing, for the purpose of this Article no
proceeding shall be deemed to constitute constructive notice of the interest of any nonrecord
claimant in the mortgaged real estate unless in the proceeding there is a legal description of the
real estate sufficient to identify it with reasonable certainty. The classification of any person as a
nonrecord claimant under the foregoing definition shall not be affected by any actual notice or
knowledge of or attributable to the mortgagee.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1211) (from Ch. 110, par. 15-1211)
Sec. 15-1211. Notice of Foreclosure. "Notice of foreclosure" means the notice of a foreclosure
which is made and recorded in accordance with Section 15-1503 of this Article.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1212) (from Ch. 110, par. 15-1212)
Sec. 15-1212. Owner of Redemption. "Owner of redemption" means a mortgagor, or other
owner or co-owner of the mortgaged real estate.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1213) (from Ch. 110, par. 15-1213)
Sec. 15-1213. Real Estate. "Real estate" means land or any estate or interest in, over or under
land (including minerals, air rights, structures, fixtures and other things which by custom, usage
or law pass with a conveyance of land though not described or mentioned in the contract of sale
or instrument of conveyance). "Mortgaged real estate" means the real estate which is the subject
of a mortgage.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1214) (from Ch. 110, par. 15-1214)
Sec. 15-1214. Real Estate Installment Contract. "Real estate installment contract" means any
agreement or contract for a deed under which the purchase price is to be paid in installments with
title to the real estate to be conveyed to the buyer upon payment of the purchase price or a
specified portion thereof. For the purpose of this definition, an earnest money deposit shall not
be considered an installment.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1215) (from Ch. 110, par. 15-1215)
Sec. 15-1215. Receiver. "Receiver" means a receiver appointed pursuant to Section 15-1704 of
this Article. (Source: P.A. 84-1462.)
7
(735 ILCS 5/15-1216) (from Ch. 110, par. 15-1216)
Sec. 15-1216. Recorder. "Recorder" means (i) the Recorder of the county in which the
mortgaged real estate is located or (ii) if the mortgaged real estate is registered under the Torrens
Act, the Registrar of Titles of the county in which the mortgaged real estate is located.
"Recorder" includes any authorized assistant or employee of the Recorder.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1217) (from Ch. 110, par. 15-1217)
Sec. 15-1217. Recording of Instruments. "Recording of instruments" or "to record" means to
present to the Recorder a document, in recordable form, which is to be recorded in accordance
with Section 3-5024 of the Counties Code, together with the required recording fee. The
Registrar of Titles shall accept the filing of notices or affidavits required or permitted by this
Article without the necessity of the production of evidence of title.
(Source: P.A. 96-328, eff. 8-11-09.)
(735 ILCS 5/15-1218) (from Ch. 110, par. 15-1218)
Sec. 15-1218. Recorded Notice. "Recorded notice" with respect to any real estate means (i)
any instrument filed in accordance with Sections 2-1901 or 12-101 of the Code of Civil
Procedure or (ii) any recorded instrument which discloses (a) the names and addresses of the
persons making the claim or asserting the interest described in the notice; (b) that such persons
have or claim some interest in or lien on the subject real estate; (c) the nature of the claim; (d) the
names of the persons against whom the claim is made; (e) a legal description of the real estate
sufficient to identify it with reasonable certainty; (f) the name and address of the person
executing the notice; and (g) the name and address of the person preparing the notice.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1219) (from Ch. 110, par. 15-1219)
Sec. 15-1219. Residential Real Estate. "Residential real estate" means any real estate, except a
single tract of agricultural real estate consisting of more than 40 acres, which is improved with a
single family residence or residential condominium units or a multiple dwelling structure
containing single family dwelling units for six or fewer families living independently of each
other, which residence, or at least one of which condominium or dwelling units, is occupied as a
principal residence either (i) if a mortgagor is an individual, by that mortgagor, that mortgagor’s
spouse or that mortgagor’s descendants, or (ii) if a mortgagor is a trustee of a trust or an executor
or administrator of an estate, by a beneficiary of that trust or estate or by such beneficiary’s
spouse or descendants or (iii) if a mortgagor is a corporation, by persons owning collectively at
least 50 percent of the shares of voting stock of such corporation or by a spouse or descendants
of such persons. The use of a portion of residential real estate for non-residential purposes shall
not affect the characterization of such real estate as residential real estate. For purposes of the
definition of the term "abandoned residential property" in Section 15-1200.5 of this Article,
"abandoned residential property" shall not include the requirement that the real estate be
occupied, or if zoned for residential development, improved with a dwelling structure.
(Source: P.A. 97-1164, eff. 6-1-13.)
8
(735 ILCS 5/15-1220) (from Ch. 110, par. 15-1220)
Sec. 15-1220. Statutory Judgment Rate. "Statutory judgment rate" means the rate of interest on
judgments specified in Section 2-1303 of the Code of Civil Procedure.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1221) (from Ch. 110, par. 15-1221)
Sec. 15-1221. Unknown Owner. "Unknown owner" means the same as "unknown owner" as
used in Section 2-413 of the Code of Civil Procedure.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1222) (from Ch. 110, par. 15-1222)
Sec. 15-1222. Acts Referred to in this Article. Acts referred to by name in this Article shall
mean those Acts, as amended from time to time, and, in particular:
(a) "Torrens Act" means "An act concerning land titles", approved May 1, 1897.
(b) (Blank).
(c) "Mechanics Lien Act" means the Mechanics Lien Act, 770 ILCS 60/Act.
(Source: P.A. 96-328, eff. 8-11-09.)
(735 ILCS 5/15-1223)
Sec. 15-1223. Occupant. "Occupant" means a person in lawful physical possession of all or
part of the mortgaged real estate.
(Source: P.A. 88-265.)
(735 ILCS 5/15-1224)
Sec. 15-1224. Bona fide lease.
(a) For purposes of Sections 9-207.5, 15-1225, 15-1506, 15-1508, and 15-1701 of this Code
only, the term "bona fide lease" means a lease of a dwelling unit in residential real estate in
foreclosure for which:
(1) the mortgagor or the child, spouse, or parent of the mortgagor is not the tenant;
(2) the lease was the result of an arms-length transaction;
(3) the lease requires the receipt of rent that is not substantially less than fair market rent for
the property or the rent is reduced or subsidized pursuant to a federal, State, or local subsidy; and
(4) either (i) the lease was entered into or renewed on or before the date of the filing of the
lis pendens on the residential real estate in foreclosure pursuant to Section 2-1901 of this Code or
(ii) the lease was entered into or renewed after the date of the filing of the lis pendens on the
residential real estate in foreclosure and before the date of the judicial sale of the residential real
estate in foreclosure, and the term of the lease is for one year or less.
(b) A written lease for a term exceeding one year that is entered into or renewed after the date
of the filing of the lis pendens on the residential real estate in foreclosure pursuant to Section 21901 of this Code and before the date of the judicial sale of the residential real estate in
foreclosure that otherwise meets the requirements of subsection (a) of this Section shall be
deemed to be a bona fide lease for a term of one year.
(c) An oral lease entered into at any time before the date of the judicial sale of the residential
real estate in foreclosure that otherwise meets the requirements of subsection (a) of this Section
shall be deemed to be a bona fide lease for a month-to-month term, unless the lessee proves by a
9
preponderance of evidence that the oral lease is for a longer term. In no event shall an oral lease
be deemed to be a bona fide lease for a term of more than one year.
(d) A written or oral lease entered into on or after the date of the judicial sale of the residential
real estate in foreclosure and before the date of the court order confirming the judicial sale that
otherwise meets the requirements of subsection (a) of this Section shall be deemed to be a bona
fide lease for a month-to-month term.
(e) Notwithstanding paragraph (1) of subsection (a) of this Section, a child, spouse, or parent
of the mortgagor may prove by a preponderance of evidence that a written or oral lease that
otherwise meets the requirements of subsection (a) of this Section is a bona fide lease.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1225)
Sec. 15-1225. Residential real estate in foreclosure. For purposes of Sections 9-207.5, 151224, 15-1506, 15-1508, and 15-1701 of this Code only, the term "residential real estate in
foreclosure" means any real estate, except a single tract of agricultural real estate consisting of
more than 40 acres, which is improved with a single family residence or residential
condominium units or a multiple dwelling structure containing single family dwelling units for
one or more families living independently of one another, for which an action to foreclose the
real estate: (1) has commenced and is pending; (2) was pending when the bona fide lease was
entered into or renewed; or (3) was commenced after the bona fide lease was entered into or
renewed.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/Art. XV Pt. 13 heading)
Part 13. Mortgage Lien Priorities
(735 ILCS 5/15-1301) (from Ch. 110, par. 15-1301)
Sec. 15-1301. Lien Created. Except as provided in Section 15-1302, from the time a mortgage
is recorded it shall be a lien upon the real estate that is the subject of the mortgage for all monies
advanced or applied or other obligations secured in accordance with the terms of the mortgage or
as authorized by law, including the amounts specified in a judgment of foreclosure in accordance
with subsection (d) of Section 15-1603.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1302) (from Ch. 110, par. 15-1302)
Sec. 15-1302. Certain Future Advances.
(a) Advances Made After Eighteen Months. Except as provided in subsection (b) of Section
15-1302, as to any monies advanced or applied more than 18 months after a mortgage is
recorded, the mortgage shall be a lien as to subsequent purchasers and judgment creditors only
from the time such monies are advanced or applied. However, nothing in this Section shall affect
any lien arising or existing by virtue of the Mechanics Lien Act.
(b) Exceptions.
(1) All monies advanced or applied pursuant to commitment, whenever advanced or
applied, shall be a lien from the time the mortgage is recorded. An advance shall be deemed
made pursuant to commitment only if the mortgagee has bound itself to make such advance in
10
the mortgage or in an instrument executed contemporaneously with, and referred to in, the
mortgage, whether or not a subsequent event of default or other event not within the mortgagee’s
control has relieved or may relieve the mortgagee from its obligation.
(2) All monies advanced or applied, whenever advanced or applied, in accordance with the
terms of a reverse mortgage shall be a lien from the time the mortgage is recorded.
(3) All monies advanced or applied in accordance with the terms of a revolving credit
arrangement secured by a mortgage as authorized by law shall be a lien from the time the
mortgage is recorded.
(4) All interest which in accordance with the terms of a mortgage is accrued or added to the
principal amount secured by the mortgage, whenever added, shall be a lien from the time the
mortgage is recorded.
(5) All monies advanced by the mortgagee in accordance with the terms of a mortgage to (i)
preserve or restore the mortgaged real estate, (ii) preserve the lien of the mortgage or the priority
thereof or (iii) enforce the mortgage, shall be a lien from the time the mortgage is recorded.
(Source: P.A. 96-328, eff. 8-11-09.)
(735 ILCS 5/Art. XV Pt. 14 heading)
Part 14. Methods of Terminating
Mortgagor’s Interest in Real Estate
(735 ILCS 5/15-1401) (from Ch. 110, par. 15-1401)
Sec. 15-1401. Deed in Lieu of Foreclosure. The mortgagor and mortgagee may agree on a
termination of the mortgagor’s interest in the mortgaged real estate after a default by a
mortgagor. Any mortgagee or mortgagee’s nominee may accept a deed from the mortgagor in
lieu of foreclosure subject to any other claims or liens affecting the real estate. Acceptance of a
deed in lieu of foreclosure shall relieve from personal liability all persons who may owe payment
or the performance of other obligations secured by the mortgage, including guarantors of such
indebtedness or obligations, except to the extent a person agrees not to be relieved in an
instrument executed contemporaneously. A deed in lieu of foreclosure, whether to the mortgagee
or mortgagee’s nominee, shall not effect a merger of the mortgagee’s interest as mortgagee and
the mortgagee’s interest derived from the deed in lieu of foreclosure. The mere tender of an
executed deed by the mortgagor or the recording of a deed by the mortgagor to the mortgagee
shall not constitute acceptance by the mortgagee of a deed in lieu of foreclosure.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1401.1)
Sec. 15-1401.1. Short sale in foreclosure.
(a) For purposes of this Section, "short sale" means the sale of real estate that is subject to a
mortgage for an amount that is less than the amount owed to the mortgagee on the outstanding
mortgage note.
(b) In a foreclosure of residential real estate, if (i) the mortgagor presents to the mortgagee a
bona fide written offer from a third party to purchase the property that is the subject of the
foreclosure proceeding, (ii) the written offer to purchase is for an amount which constitutes a
short sale of the property, and (iii) the mortgagor makes a written request to the mortgagee to
11
approve the sale on the terms of the offer to purchase, the mortgagee must respond to the
mortgagor within 90 days after receipt of the written offer and written request.
(c) The mortgagee shall determine whether to accept the mortgagor’s short sale offer. Failure
to accept the offer shall not impair or abrogate in any way the rights of the mortgagee or affect
the status of the foreclosure proceedings. The 90-day period shall not operate as a stay of the
proceedings.
(Source: P.A. 97-666, eff. 1-13-12.)
(735 ILCS 5/15-1402) (from Ch. 110, par. 15-1402)
Sec. 15-1402. Consent Foreclosure.
(a) No Objection. In a foreclosure, the court shall enter a judgment satisfying the mortgage
indebtedness by vesting absolute title to the mortgaged real estate in the mortgagee free and clear
of all claims, liens (except liens of the United States of America which cannot be foreclosed
without judicial sale) and interest of the mortgagor, including all rights of reinstatement and
redemption, and of all rights of all other persons made parties in the foreclosure whose interests
are subordinate to that of the mortgagee and all nonrecord claimants given notice in accordance
with paragraph (2) of subsection (c) of Section 15-1502 if at any time before sale:
(1) the mortgagee offers, in connection with such a judgment, to waive any and all rights to
a personal judgment for deficiency against the mortgagor and against all other persons liable for
the indebtedness or other obligations secured by the mortgage;
(2) such offer is made either in the foreclosure complaint or by motion upon notice to all
parties not in default;
(3) all mortgagors who then have an interest in the ortgaged real estate, by answer to the
complaint, response to the motion or stipulation filed with the court expressly consent to the
entry of such judgment;
(4) no other party, by answer or by response to the motion or stipulation, within the time
allowed for such answer or response, objects to the entry of such judgment; and
(5) upon notice to all parties who have not previously been found in default for failure to
appear, answer or otherwise plead.
(b) Objection. If any party other than a mortgagor who then has an interest in the mortgaged
real estate objects to the entry of such judgment by consent, the court, after hearing, shall enter
an order providing either:
(1) that for good cause shown, the judgment by consent shall not be allowed; or
(2) that, good cause not having been shown by the objecting party and the objecting party
not having agreed to pay the amount required to redeem in accordance with subsection (d) of
Section 15-1603, title to the mortgaged real estate be vested in the mortgagee as requested by the
mortgagee and consented to by the mortgagor; or
(3) determining the amount required to redeem in accordance with subsection (d) of Section
15-1603, finding that the objecting party (or, if more than one party so objects, the objecting
party who has the least priority) has agreed to pay such amount and additional interest under the
mortgage accrued to the date of payment within 30 days after entry of the order, and declaring
that upon payment of such amount within 30 days title to the mortgaged real estate shall be
vested in such objecting party. Title so vested shall be free and clear of all claims, liens (except
liens of the United States of America which cannot be foreclosed without judicial sale) and
interest of the mortgagor and of all rights of other persons made parties in the foreclosure whose
interests are subordinate to the interest of the mortgagee and all nonrecord claimants given notice
12
in accordance with paragraph (2) of subsection (c) of Section 15-1502. If any objecting party
subject to such an order has not paid the amount required to redeem in accordance with that
order within the 30-day period, the court (i) shall order that such title to the mortgaged real estate
shall vest in the objecting party next higher in priority (and successively with respect to each
other objecting party in increasing order of such party’s priority), if any, upon that party’s
agreeing to pay within 30 days after the entry of such further order, such amount as specified in
the original order plus additional interest under the terms of the mortgage accrued to the date of
payment, provided that such party pays such amount within the 30-day period, and (ii) may order
that the non-paying objecting party pay costs, interest accrued between the start of the preceding
30-day period and the later of the date another objecting party makes the payment, if applicable,
or the date such period expired, and the reasonable attorneys’ fees incurred by all other parties on
account of that party’s objection.
(c) Judgment. Any judgment entered pursuant to Section 15-1402 shall recite the mortgagee’s
waiver of rights to a personal judgment for deficiency and shall bar the mortgagee from
obtaining such a deficiency judgment against the mortgagor or any other person liable for the
indebtedness or other obligations secured by the mortgage.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1403) (from Ch. 110, par. 15-1403)
Sec. 15-1403. Common Law Strict Foreclosure. Nothing in this Article shall affect the right of
a mortgagee to foreclose its mortgage by a common law strict foreclosure as in existence in
Illinois on the effective date of this Article.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1404) (from Ch. 110, par. 15-1404)
Sec. 15-1404. Judicial Foreclosure. Except as provided in subsection (d) of Section 15-1501,
the interest in the mortgaged real estate of (i) all persons made a party in such foreclosure and (ii)
all nonrecord claimants given notice in accordance with paragraph (2) of subsection (c) of
Section 15-1502, shall be terminated by the judicial sale of the real estate, pursuant to a judgment
of foreclosure, provided the sale is confirmed in accordance with this Article.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1405) (from Ch. 110, par. 15-1405)
Sec. 15-1405. Power of Sale. No real estate within this State may be sold by virtue of any
power of sale contained in a mortgage or any other agreement, and all such mortgages may only
be foreclosed in accordance with this Article.
(Source: P.A. 84-1462.)
(735 ILCS 5/Art. XV Pt. 15 heading)
Part 15. Judicial Foreclosure Procedure
(735 ILCS 5/15-1501) (from Ch. 110, par. 15-1501)
Sec. 15-1501. Parties.
13
(a) Necessary Parties. For the purposes of Section 2-405 of the Code of Civil Procedure, only
(i) the mortgagor and (ii) other persons (but not guarantors) who owe payment of indebtedness or
the performance of other obligations secured by the mortgage and against whom personal
liability is asserted shall be necessary parties defendant in a foreclosure. The court may proceed
to adjudicate their respective interests, but any disposition of the mortgaged real estate shall be
subject to (i) the interests of all other persons not made a party or (ii) interests in the mortgaged
real estate not otherwise barred or terminated in the foreclosure.
(b) Permissible Parties. Any party may join as a party any other person, although such person
is not a necessary party, including, without limitation, the following:
(1) All persons having a possessory interest in the mortgaged real estate;
(2) A mortgagor’s spouse who has waived the right of homestead;
(3) A trustee holding an interest in the mortgaged real estate or a beneficiary of such trust;
(4) The owner or holder of a note secured by a trust deed;
(5) Guarantors, provided that in a foreclosure anysuch guarantor also may be joined as a
party in a separate count in an action on such guarantor’s guaranty;
(6) The State of Illinois or any political subdivision thereof, where a foreclosure involves
real estate upon which the State or such subdivision has an interest or claim for lien, in which
case "An Act in relation to immunity for the State of Illinois", approved December 10, 1971, as
amended, shall not be effective;
(7) The United States of America or any agency or department thereof where a foreclosure
involves real estate upon which the United States of America or such agency or department has
an interest or a claim for lien;
(8) Any assignee of leases or rents relating to the mortgaged real estate;
(9) Any person who may have a lien under the Mechanic’s Lien Act; and
(10) Any other mortgagee or claimant.
(c) Unknown Owners. Any unknown owner may be made a party in accordance with Section
2-413 of the Code of Civil Procedure.
(d) Right to Become Party. Any person who has or claims an interest in real estate which is the
subject of a foreclosure or an interest in any debt secured by the mortgage shall have an
unconditional right to appear and become a party in such foreclosure in accordance with
subsection (e) of Section 15-1501, provided, that neither such appearance by a lessee whose
interest in the real estate is subordinate to the interest being foreclosed, nor the act of making
such lessee a party, shall result in the termination of the lessee’s lease unless the termination of
the lease or lessee’s interest in the mortgaged real estate is specifically ordered by the court in
the judgment of foreclosure.
(e) Time of Intervention.
(1) Of Right. A person not a party, other than a nonrecord claimant given notice in
accordance with paragraph (2) of subsection (c) of Section 15-1502, who has or claims an
interest in the mortgaged real estate may appear and become a party at any time prior to the entry
of judgment of foreclosure. A nonrecord claimant given such notice may appear and become a
party at any time prior to the earlier of (i) the entry of a judgment of foreclosure or (ii) 30 days
after such notice is given.
(2) In Court’s Discretion. After the right to intervene expires and prior to the sale in
accordance with the judgment, the court may permit a person who has or claims an interest in the
mortgaged real estate to appear and become a party on such terms as the court may deem just.
14
(3) Later Right. After the sale of the mortgaged real estate in accordance with a judgment of
foreclosure and prior to the entry of an order confirming the sale, a person who has or claims an
interest in the mortgaged real estate, may appear and become a party, on such terms as the court
may deem just, for the sole purpose of claiming an interest in the proceeds of sale. Any such
party shall be deemed a party from the commencement of the foreclosure, and the interest of
such party in the real estate shall be subject to all orders and judgments entered in the
foreclosure.
(4) Termination of Interest. Except as provided in Section 15-1501(d), the interest of any
person who is allowed to appear and become a party shall be terminated, and the interest of such
party in the real estate shall attach to the proceeds of sale.
(f) Separate Actions. Any mortgagee or claimant, other than the mortgagee who commences a
foreclosure, whose interest in the mortgaged real estate is recorded prior to the filing of a notice
of foreclosure in accordance with this Article but who is not made a party to such foreclosure,
shall not be barred from filing a separate foreclosure (i) as an intervening defendant or
counterclaimant in accordance with subsections (d) and (e) of Section 15-1501 if a judgment of
foreclosure has not been entered in the original foreclosure or (ii) in a new foreclosure
subsequent to the entry of a judgment of foreclosure in the original foreclosure.
(g) Service on the State of Illinois. When making the State of Illinois a party to a foreclosure,
summons may be served by sending, by registered or certified mail, a copy of the summons and
the complaint to the Attorney General. The complaint shall set forth with particularity the nature
of the interest or lien of the State of Illinois. If such interest or lien appears in a recorded
instrument, the complaint must state the document number of the instrument and the office
wherein it was recorded.
(h) Special Representatives. The court is not required to appoint a special representative for a
deceased mortgagor for the purpose of defending the action, if there is a living person that holds
a 100% interest in the property that is the subject of the action, by virtue of being the deceased
mortgagor’s surviving joint tenant or surviving tenant by the entirety. In no event may a
deficiency judgment be sought or entered in the foreclosure case pursuant to subsection (e) of
Section 15-1508 against a deceased mortgagor.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1501.5)
Sec. 15-1501.5. Return from combat stay. In addition to any rights and obligations provided
under the federal Servicemembers Civil Relief Act, whenever it is determined in a foreclosure
proceeding that the mortgagor defendant is a person who was deployed to a combat or combat
support posting while on active military duty and serving overseas within the previous 12
months, the court must stay the proceedings for a period of 90 days upon application to the court
by the mortgagor defendant. "Active military duty" means, for purposes of this Section, service
on active duty as a member of the Armed Forces of the United States, the Illinois National
Guard, or any reserve component of the Armed Forces of the United States.
(Source: P.A. 96-901, eff. 1-1-11; 97-333, eff. 8-12-11.)
(735 ILCS 5/15-1501.6)
Sec. 15-1501.6. Relief in mortgage foreclosure proceedings for military personnel in military
service.
(a) In this Section:
15
"Military service" means any full-time training or duty, no matter how described under federal
or State law, for which a service member is ordered to report by the President, Governor of a
state, commonwealth, or territory of the United States, or other appropriate military authority.
"Service member" means a resident of Illinois who is a member of any component of the U.S.
Armed Forces or the National Guard of any state, the District of Columbia, a commonwealth, or
a territory of the United States.
(b) In an action for foreclosure, a mortgagor who is a service member that has entered military
service for a period greater than 29 consecutive days or any member of the mortgagor’s family
who resides with the mortgagor at the mortgaged premises, if the mortgagor entered into the
mortgage agreement before the mortgagor received orders for military service on or after the
effective date of this amendatory Act of the 97th General Assembly, may file a motion for relief
and the court shall, if the mortgagor’s ability to pay the agreed mortgage payments or to defend
the foreclosure proceedings is materially affected by the mortgagor’s military service, do one or
more of the following:
(1) stay the proceedings for a period of 90 days after the mortgagor returns from military
service, unless, in the opinion of the court, justice and equity require a longer or shorter period of
time; or
(2) adjust the obligation under the mortgage agreement by reducing the monthly payments
for a period lasting up to 90 days after the mortgagor returns from military service and extending
the term of the mortgage, provided that the adjustment preserves the interest of all parties to it.
(c) In order to be eligible for the benefits granted to a service member under this Section, a
service member or a member of the service member’s family who resides with the service
member at the mortgaged premises must provide the court and the mortgagee with a copy of the
orders calling the service member to military service in excess of 29 consecutive days and of any
orders further extending the service member’s period of service.
(d) If a stay is granted under this Section, the court may grant the mortgagee such relief as
equity may require.
(e) The forms of relief available under this Section shall continue to be available up to 90 days
after the completion of the service member’s military service.
(f) In addition to any sanction available to the court for violation of a stay or order, a violation
of this Section constitutes a civil rights violation under the Illinois Human Rights Act. All
proceeds from the collection of any civil penalty imposed pursuant to the Illinois Human Rights
Act under this subsection shall be deposited into the Illinois Military Family Relief Fund.
(Source: P.A. 97-913, eff. 1-1-13.)
(735 ILCS 5/15-1502) (from Ch. 110, par. 15-1502)
Sec. 15-1502. Nonrecord Claimants. (a) Right to Become Record Claimant. At any time prior
to the recording of a notice of foreclosure in accordance with Section 15-1503, a nonrecord
claimant or unknown owner may become a record claimant with respect to the foreclosure by
recording a notice of such claimant’s interest in the mortgaged real estate in accordance with
Section 15-1218.
(b) Rights of Nonrecord Claimants After Notice. The interest in the mortgaged real estate of a
nonrecord claimant who is given notice of the foreclosure as provided in paragraph (2) of
subsection (c) of Section 15-1502 shall be barred and terminated by any judgment of foreclosure
to the same extent as if such claimant had been a party.
16
(c) Terminating Rights of Nonrecord Claimants. (1) Contents of Affidavit. A party in a
foreclosure seeking to bar and terminate the interest in the mortgaged real estate of nonrecord
claimants shall file in the office of the clerk of the court in which such action is pending an
affidavit stating (i) the names and respective present or last known places of residence of such
nonrecord claimants, or (ii) that the existence, names or the present or last known places of
residence, or both, of such nonrecord claimants are unknown as of that time to the party and to
the party’s attorney. Such affidavit, with respect to names and places of residence, may be made
upon information and belief of the affiant. The affidavit need not state that inquiry has been
made to ascertain the names or present or last known places of residence of such nonrecord
claimants, and no such inquiry need be made.
(2) Notice. At least 30 days prior to the entry of a judgment of foreclosure, any person
identified in the affidavit described in paragraph (1) of subsection (c) of Section 15-1502 shall be
given a notice of the foreclosure complying with the requirements of Section 15-1503 by the
party filing the affidavit. Such notice shall be given in the manner and upon the terms and
conditions set forth in Sections 2-206 and 2-207 of the Code of Civil Procedure, except that (i)
such notice with respect to nonrecord claimants whose names are not set forth in such affidavit,
instead of being addressed to such nonrecord claimants by name, may simply be addressed to
"Nonrecord Claimants" and (ii) when the mortgaged real estate is located within a municipality
in a county with a population under 2,000,000, publication shall be in a newspaper generally
circulated in such municipality. Such notice shall have the same effect with respect to all
nonrecord claimants designated therein as though a notice containing their names had been
published in accordance with Sections 2-206 and 2-207 of the Code of Civil Procedure and may
be combined with any notice published against parties defendant in the same action pursuant to
those Sections.
(3) Errors. Any inaccuracy in the affidavit described in paragraph (1) of subsection (c) of
Section 15-1502 or the failure to file such affidavit or the failure to give notice in accordance
with paragraph (2) of subsection (c) of Section 15-1502 shall not invalidate any sale made
pursuant to this Article.
(4) Rights of Barred Nonrecord Claimant. Nothing in paragraph (3) of subsection (c) of
Section 15-1502 shall affect the rights, if any, of any nonrecord claimant whose interest in the
mortgaged real estate was barred and terminated to bring an action against any party to the
foreclosure on whose behalf the affidavit was filed, on account of the filing of an inaccurate
affidavit by such party in accordance with paragraph (1) of subsection (c) of Section 15-1502 or
the failure to give notice in accordance with paragraph (2) of subsection (c) of Section 15-1502.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1502.5)
(Section scheduled to be repealed on July 1, 2016)
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
17
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.
"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 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. 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
18
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 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 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 July 1, 2016.
(Source: P.A. 98-25, eff. 6-20-13.)
(735 ILCS 5/15-1503) (from Ch. 110, par. 15-1503)
Sec. 15-1503. Notice of Foreclosure.
(a) A notice of foreclosure, whether the foreclosure is initiated by complaint or counterclaim,
made in accordance with this Section and recorded in the county in which the mortgaged real
estate is located shall be constructive notice of the pendency of the foreclosure to every person
19
claiming an interest in or lien on the mortgaged real estate, whose interest or lien has not been
recorded prior to the recording of such notice of foreclosure. Such notice of foreclosure must be
executed by any party or any party’s attorney and shall include (i) the names of all plaintiffs and
the case number, (ii) the court in which the action was brought, (iii) the names of title holders of
record, (iv) a legal description of the real estate sufficient to identify it with reasonable certainty,
(v) a common address or description of the location of the real estate and (vi) identification of
the mortgage sought to be foreclosed. An incorrect common address or description of the
location, or an immaterial error in the identification of a plaintiff or title holder of record, shall
not invalidate the lis pendens effect of the notice under this Section. A notice which complies
with this Section shall be deemed to comply with Section 2-1901 of the Code of Civil Procedure
and shall have the same effect as a notice filed pursuant to that Section; however, a notice which
complies with Section 2-1901 shall not be constructive notice unless it also complies with the
requirements of this Section.
(b) With respect to residential real estate, a copy of the notice of foreclosure described in
subsection (a) of Section 15-1503 shall be sent by first class mail, postage prepaid, to the
municipality within the boundary of which the mortgaged real estate is located, or to the county
within the boundary of which the mortgaged real estate is located if the mortgaged real estate is
located in an unincorporated territory. A municipality or county must clearly publish on its
website a single address to which such notice shall be sent. If a municipality or county does not
maintain a website, then the municipality or county must publicly post in its main office a single
address to which such notice shall be sent. In the event that a municipality or county has not
complied with the publication requirement in this subsection (b), then the copy of the notice to
the municipality or county shall be sent by first class mail, postage prepaid, to the chairperson of
the county board or county clerk in the case of a county, to the mayor or city clerk in the case of
a city, to the president of the board of trustees or village clerk in the case of a village, or to the
president or town clerk in the case of a town. Additionally, if the real estate is located in a city
with a population of more than 2,000,000, regardless of whether that city has complied with the
publication requirement in this subsection (b), the party must, within 10 days after filing the
complaint or counterclaim: (i) send by first class mail, postage prepaid, a copy of the notice of
foreclosure to the alderman for the ward in which the real estate is located and (ii) file an
affidavit with the court attesting to the fact that the notice was sent to the alderman for the ward
in which the real estate is located. The failure to send a copy of the notice to the alderman or to
file an affidavit as required results in the dismissal without prejudice of the complaint or
counterclaim on a motion of a party or the court. If, after the complaint or counterclaim has been
dismissed without prejudice, the party refiles the complaint or counterclaim, then the party must
again comply with the requirements that the party send by first class mail, postage prepaid, the
notice to the alderman for the ward in which the real estate is located and file an affidavit
attesting to the fact that the notice was sent.
(Source: P.A. 96-856, eff. 3-1-10; 97-1164, eff. 6-1-13.)
(735 ILCS 5/15-1504) (from Ch. 110, par. 15-1504)
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).
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(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 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 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:
REQUEST FOR RELIEF
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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:
(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 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 otherperiod 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
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(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 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 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 preexisting private or governmental mortgage insurance to the extent required after a foreclosure is
commenced in order to keep such insurance in force; and
(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);
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(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 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 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 5/15-1504.1)
Sec. 15-1504.1. Filing fee for Foreclosure Prevention Program Fund, Foreclosure Prevention
Program Graduated Fund, and Abandoned Residential Property Municipality Relief Fund.
(a) Fee paid by all plaintiffs with respect to residential real estate. With respect to residential
real estate, at the time of the filing of a foreclosure complaint, the plaintiff shall pay to the clerk
of the court in which the foreclosure complaint is filed a fee of $50 for deposit into the
Foreclosure Prevention Program Fund, a special fund created in the State treasury. The clerk
shall remit the fee collected pursuant to this subsection (a) to the State Treasurer to be expended
for the purposes set forth in Section 7.30 of the Illinois Housing Development Act. All fees paid
by plaintiffs to the clerk of the court as provided in this subsection (a) shall be disbursed within
60 days after receipt by the clerk of the court as follows: (i) 98% to the State Treasurer for
deposit into the Foreclosure Prevention Program Fund, and (ii) 2% to the clerk of the court to be
retained by the clerk for deposit into the Circuit Court Clerk Operation and Administrative Fund
to defray administrative expenses related to implementation of this subsection (a).
24
Notwithstanding any other law to the contrary, the Foreclosure Prevention Program Fund is not
subject to sweeps, administrative charge-backs, or any other fiscal maneuver that would in any
way transfer any amounts from the Foreclosure Prevention Program Fund into any other fund of
the State.
(a-5) Additional fee paid by plaintiffs with respect to residential real estate.
(1) Until January 1, 2018, with respect to residential real estate, at the time of the filing of a
foreclosure complaint and in addition to the fee set forth in subsection (a) of this Section, the
plaintiff shall pay to the clerk of the court in which the foreclosure complaint is filed a fee for the
Foreclosure Prevention Program Graduated Fund and the Abandoned Residential Property
Municipality Relief Fund as follows:
(A) The fee shall be $500 if:
(i) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the first tier foreclosure filing category and is filing the
complaint on its own behalf as the holder of the indebtedness; or
(ii) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the first tier foreclosure filing category and is filing the
complaint on behalf of a mortgagee that, together with its affiliates, has filed a sufficient number
of foreclosure complaints so as to be included in the first tier foreclosure filing category; or
(iii) the plaintiff is not a depository institution and is filing the complaint on behalf of a
mortgagee that, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the first tier foreclosure filing category.
(B) The fee shall be $250 if:
(i) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the second tier foreclosure filing category and is filing the
complaint on its own behalf as the holder of the indebtedness; or
(ii) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the first or second tier foreclosure filing category and is filing
the complaint on behalf of a mortgagee that, together with its affiliates, has filed a sufficient
number of foreclosure complaints so as to be included in the second tier foreclosure filing
category; or
(iii) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the second tier foreclosure filing category and is filing the
complaint on behalf of a mortgagee that, together with its affiliates, has filed a sufficient number
of foreclosure complaints so as to be included in the first tier foreclosure filing category; or
(iv) the plaintiff is not a depository institution and is filing the complaint on behalf of a
mortgagee that, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the second tier foreclosure filing category.
(C) The fee shall be $50 if:
(i) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the third tier foreclosure filing category and is filing the
complaint on its own behalf as the holder of the indebtedness; or
(ii) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the first, second, or third tier foreclosure filing category and is
filing the complaint on behalf of a mortgagee that, together with its affiliates, has filed a
sufficient number of foreclosure complaints so as to be included in the third tier foreclosure
filing category; or
25
(iii) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the third tier foreclosure filing category and is filing the
complaint on behalf of a mortgagee that, together with its affiliates, has filed a sufficient number
of foreclosure complaints so as to be included in the first tier foreclosure filing category; or
(iv) the plaintiff, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the third tier foreclosure filing category and is filing the
complaint on behalf of a mortgagee that, together with its affiliates, has filed a sufficient number
of foreclosure complaints so as to be included in the second tier foreclosure filing category; or
(v) the plaintiff is not a depository institution and is filing the complaint on behalf of a
mortgagee that, together with its affiliates, has filed a sufficient number of foreclosure
complaints so as to be included in the third tier foreclosure filing category.
(2) The clerk shall remit the fee collected pursuant to paragraph (1) of this subsection (a-5)
to the State Treasurer to be expended for the purposes set forth in Sections 7.30 and 7.31 of the
Illinois Housing Development Act and for administrative expenses. All fees paid by plaintiffs to
the clerk of the court as provided in paragraph (1) shall be disbursed within 60 days after receipt
by the clerk of the court as follows:
(A) 28% to the State Treasurer for deposit into the Foreclosure Prevention Program
Graduated Fund;
(B) 70% to the State Treasurer for deposit into the Abandoned Residential Property
Municipality Relief Fund; and
(C) 2% to the clerk of the court to be retained by the clerk for deposit into the Circuit
Court Clerk Operation and Administrative Fund to defray administrative expenses related to
implementation of this subsection (a-5).
(3) Until January 1, 2018, with respect to residential real estate, at the time of the filing of a
foreclosure complaint, the plaintiff or plaintiff’s representative shall file a verified statement that
states which additional fee is due under paragraph (1) of this subsection (a-5), unless the court
has established another process for a plaintiff or plaintiff’s representative to certify which
additional fee is due under paragraph (1) of this subsection (a-5).
(4) If a plaintiff fails to provide the clerk of the court with a true and correct statement of
the additional fee due under paragraph (1) of this subsection (a-5), and the mortgagor reimburses
the plaintiff for any erroneous additional fee that was paid by the plaintiff to the clerk of the
court, the mortgagor may seek a refund of any overpayment of the fee in an amount that shall not
exceed the difference between the higher additional fee paid under paragraph (1) of this
subsection (a-5) and the actual fee due thereunder. The mortgagor must petition the judge within
the foreclosure action for the award of any fee overpayment pursuant to this paragraph (4) of this
subsection (a-5), and the award shall be determined by the judge and paid by the clerk of the
court out of the fund account into which the clerk of the court deposits fees to be remitted to the
State Treasurer under paragraph (2) of this subsection (a-5), the timing of which refund payment
shall be determined by the clerk of the court based upon the availability of funds in the subject
fund account. This refund shall be the mortgagor’s sole remedy and a mortgagor shall have no
private right of action against the plaintiff or plaintiff’s representatives if the additional fee paid
by the plaintiff was erroneous.
(5) This subsection (a-5) is inoperative on and after January 1, 2018.
(b) Not later than March 1 of each year, the clerk of the court shall submit to the Illinois
Housing Development Authority a report of the funds collected and remitted pursuant to this
Section during the preceding year.
26
(c) As used in this Section:
"Affiliate" means any company that controls, is controlled by, or is under common control
with another company.
"Approved counseling agency" and "approved housing counseling" have the meanings
ascribed to those terms in Section 7.30 of the Illinois Housing Development Act.
"Depository institution" means a bank, savings bank, savings and loan association, or credit
union chartered, organized, or holding a certificate of authority to do business under the laws of
this State, another state, or the United States.
"First tier foreclosure filing category" is a classification that only applies to a plaintiff that has
filed 175 or more foreclosure complaints on residential real estate located in Illinois during the
calendar year immediately preceding the date of the filing of the subject foreclosure complaint.
"Second tier foreclosure filing category" is a classification that only applies to a plaintiff that
has filed at least 50, but no more than 174, foreclosure complaints on residential real estate
located in Illinois during the calendar year immediately preceding the date of the filing of the
subject foreclosure complaint.
"Third tier foreclosure filing category" is a classification that only applies to a plaintiff that has
filed no more than 49 foreclosure complaints on residential real estate located in Illinois during
the calendar year immediately preceding the date of the filing of the subject foreclosure
complaint.
(d) In no instance shall the fee set forth in subsection (a-5) be assessed for any foreclosure
complaint filed before the effective date of this amendatory Act of the 97th General Assembly.
(e) Notwithstanding any other law to the contrary, the Abandoned Residential Property
Municipality Relief Fund is not subject to sweeps, administrative charge-backs, or any other
fiscal maneuver that would in any way transfer any amounts from the Abandoned Residential
Property Municipality Relief Fund into any other fund of the State.
(Source: P.A. 97-333, eff. 8-12-11; 97-1164, eff. 6-1-13; 98-20, eff. 6-11-13.)
(735 ILCS 5/15-1504.5)
Sec. 15-1504.5. Homeowner notice to be attached to summons. For all residential foreclosure
actions filed, the plaintiff must attach a Homeowner Notice to the summons. The Homeowner
Notice must be in at least 12 point type and in English and Spanish. The Spanish translation shall
be prepared by the Attorney General and posted on the Attorney General’s website. A notice that
includes the Attorney General’s Spanish translation in substantially similar form shall be deemed
to comply with the Spanish notice requirement in this Section. The Notice must be in
substantially the following form:
IMPORTANT INFORMATION FOR HOMEOWNERS IN FORECLOSURE
1. POSSESSION: The lawful occupants of a home have the right to live in the home until a
judge enters an order for possession.
2. OWNERSHIP: You continue to own your home until the court rules otherwise.
3. REINSTATEMENT: As the homeowner you have the right to bring the mortgage current
within 90 days after you receive the summons.
4. REDEMPTION: As the homeowner you have the right to sell your home, refinance, or
pay off the loan during the redemption period.
27
5. SURPLUS: As the homeowner you have the right to petition the court for any excess
money that results from a foreclosure sale of your home.
6. WORKOUT OPTIONS: The mortgage company does not want to foreclose on your
home if there is any way to avoid it. Call your mortgage company [insert name of the
homeowner’s current mortgage servicer in bold and 14 point type] or its attorneys to find out the
alternatives to foreclosure.
7. PAYOFF AMOUNT: You have the right to obtain a written statement of the amount
necessary to pay off your loan. Your mortgage company (identified above) must provide you this
statement within 10 business days of receiving your request, provided that your request is in
writing and includes your name, the address of the property, and the mortgage account or loan
number. Your first payoff statement will be free.
8. GET ADVICE: This information is not exhaustive and does not replace the advice of a
professional. You may have other options. Get professional advice from a lawyer or certified
housing counselor about your rights and options to avoid foreclosure.
9. LAWYER: If you do not have a lawyer, you may be able to find assistance by contacting
the Illinois State Bar Association or a legal aid organization that provides free legal assistance.
10. PROCEED WITH CAUTION: You may be contacted by people offering to help you
avoid foreclosure. Before entering into any transaction with persons offering to help you, please
contact a lawyer, government official, or housing counselor for advice.
(Source: P.A. 95-961, eff. 1-1-09.)
(735 ILCS 5/15-1505) (from Ch. 110, par. 15-1505)
Sec. 15-1505. Real Estate Subject to Senior Liens. During a foreclosure, and any time prior to
sale, a mortgagee or any other lienor may pay (i) when due installments of principal, interest or
other obligations in accordance with the terms of any senior mortgage, (ii) when due installments
of real estate taxes or (iii) any other obligation authorized by the mortgage instrument. With
court approval, a mortgagee or any other lienor may pay any other amounts in connection with
other liens, encumbrances or interests reasonably necessary to preserve the status of title.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1505.5)
Sec. 15-1505.5. Payoff demands.
(a) In a foreclosure action subject to this Article, on the written demand of a mortgagor or the
mortgagor’s authorized agent (which shall include the mortgagor’s name, the mortgaged
property’s address, and the mortgage account or loan number), a mortgagee or the mortgagee’s
authorized agent shall prepare and deliver an accurate statement of the total outstanding balance
of the mortgagor’s obligation that would be required to satisfy the obligation in full as of the date
of preparation ("payoff demand statement") to the mortgagor or the mortgagor’s authorized agent
who has requested it within 10 business days after receipt of the demand. For purposes of this
Section, a payoff demand statement is accurate if prepared in good faith based on the records of
the mortgagee or the mortgagee’s agent.
(b) The payoff demand statement shall include the following:
(1) the information necessary to calculate the payoff amount on a per diem basis for the
lesser of a period of 30 days or until the date scheduled for judicial sale;
(2) estimated charges (stated as such) that the mortgagee reasonably believes may be
incurred within 30 days from the date of preparation of the payoff demand statement; and
28
(3) the loan number for the obligation to be paid, the address of the mortgagee, the
telephone number of the mortgagee and, if a banking organization or corporation, the name of
the department, if applicable, and its telephone number and facsimile phone number.
(c) A mortgagee or mortgagee’s agent who willfully fails to prepare and deliver an accurate
payoff demand statement within 10 business days after receipt of a written demand is liable to
the mortgagor for actual damages sustained for failure to deliver the statement. The mortgagee or
mortgagee’s agent is liable to the mortgagor for $500 if no actual damages are sustained. For
purposes of this subsection, "willfully" means a failure to comply with this Section without just
cause or excuse or mitigating circumstances.
(d) The mortgagor must petition the judge within the foreclosure action for the award of any
damages pursuant to this Section, which award shall be determined by the judge.
(e) Unless the payoff demand statement provides otherwise, the statement is deemed to apply
only to the unpaid balance of the single obligation that is named in the demand and that is
secured by the mortgage or deed of trust identified in the payoff demand statement.
(f) The demand for and preparation and delivery of a payoff demand statement pursuant to this
Section does not change any date or time period that is prescribed in the note or that is otherwise
provided by law. Failure to comply with any provision of this Section does not change any of the
rights of the parties as set forth in the note, mortgage, or applicable law.
(g) The mortgagee or mortgagee’s agent shall furnish the first payoff demand statement at no
cost to the mortgagor.
(h) For the purposes of this Section, unless the context otherwise requires, "deliver" or
"delivery" means depositing or causing to be deposited into the United States mail an envelope
with postage prepaid that contains a copy of the documents to be delivered and that is addressed
to the person whose name and address are provided in the payoff demand. "Delivery" may also
include transmitting those documents by telephone facsimile to the person or electronically if the
payoff demand specifically requests and authorizes that the documents be transmitted in
electronic form.
(i) The mortgagee or mortgagee’s agent is not required to comply with the payoff demand
statement procedure set forth in this Section when responding to a notice of intent to redeem
issued under Section 15-1603(e).
(Source: P.A. 95-961, eff. 1-1-09.)
(735 ILCS 5/15-1505.6)
Sec. 15-1505.6. Objection to jurisdiction over the person.
(a) In any residential foreclosure action, the deadline for filing a motion to dismiss the entire
proceeding or to quash service of process that objects to the court’s jurisdiction over the person,
unless extended by the court for good cause shown, is 60 days after the earlier of these events: (i)
the date that the moving party filed an appearance; or (ii) the date that the moving party
participated in a hearing without filing an appearance.
(b) In any residential foreclosure action, if the objecting party files a responsive pleading or a
motion (other than a motion for an extension of time to answer or otherwise appear) prior to the
filing of a motion in compliance with subsection (a), that party waives all objections to the
court’s jurisdiction over the party’s person.
(Source: P.A. 97-329, eff. 8-12-11.)
(735 ILCS 5/15-1505.8)
Sec. 15-1505.8. Expedited judgment and sale procedure for abandoned residential property.
29
(a) Upon motion and notice, the mortgagee may elect to utilize the expedited judgment and
sale procedure for abandoned residential property stated in this Section to obtain a judgment of
foreclosure pursuant to Section 15-1506. The motion to expedite the judgment and sale may be
combined with or made part of the motion requesting a judgment of foreclosure. The notice of
the motion to expedite the judgment and sale shall be sent by first-class mail to the last known
address of the mortgagor, and the notice required by paragraph (1) of subsection (l) of this
Section shall be posted at the property address.
(b) The motion requesting an expedited judgment of foreclosure and sale may be filed by the
mortgagee at the time the foreclosure complaint is filed or any time thereafter, and shall set forth
the facts demonstrating that the mortgaged real estate is abandoned residential real estate under
Section 15-1200.5 and shall be supported by affidavit.
(c) If a motion for an expedited judgment and sale is filed at the time the foreclosure
complaint is filed or before the period to answer the foreclosure complaint has expired, the
motion shall be heard by the court no earlier than before the period to answer the foreclosure
complaint has expired and no later than 21 days after the period to answer the foreclosure
complaint has expired.
(d) If a motion for an expedited judgment and sale is filed after the period to answer the
foreclosure complaint has expired, the motion shall be heard no later than 21 days after the
motion is filed.
(e) The hearing shall be given priority by the court and shall be scheduled to be heard within
the applicable time period set forth in subsection (c) or (d) of this Section.
(f) Subject to subsection (g), at the hearing on the motion requesting an expedited judgment
and sale, if the court finds that the mortgaged real estate is abandoned residential property, the
court shall grant the motion and immediately proceed to a trial of the foreclosure. A judgment of
foreclosure under this Section shall include the matters identified in Section 15-1506.
(g) The court may not grant the motion requesting an expedited judgment and sale if the
mortgagor, an unknown owner, or a lawful occupant appears in the action in any manner before
or at the hearing and objects to a finding of abandonment.
(h) The court shall vacate an order issued pursuant to subsection (f) of this Section if the
mortgagor or a lawful occupant appears in the action at any time prior to the court issuing an
order confirming the sale pursuant to subsection (b-3) of Section 15-1508 and presents evidence
establishing to the satisfaction of the court that the mortgagor or lawful occupant has not
abandoned the mortgaged real estate.
(i) The reinstatement period and redemption period for the abandoned residential property
shall end in accordance with paragraph (4) of subsection (b) of Section 15-1603, and the
abandoned residential property shall be sold at the earliest practicable time at a sale as provided
in this Article.
(j) The mortgagee or its agent may enter, secure, and maintain abandoned residential property
subject to subsection (e-5) of Section 21-3 of the Criminal Code of 2012.
(k) Personal property.
(1) Upon confirmation of the sale held pursuant to Section 15-1507, any personal property
remaining in or upon the abandoned residential property shall be deemed to have been
abandoned by the owner of such personal property and may be disposed of or donated by the
holder of the certificate of sale (or, if none, by the purchaser at the sale). In the event of donation
of any such personal property, the holder of the certificate of sale (or, if none, the purchaser at
the sale) may transfer such donated property with a bill of sale. No mortgagee or its successors or
30
assigns, holder of a certificate of sale, or purchaser at the sale shall be liable for any such
disposal or donation of personal property.
(2) Notwithstanding paragraph (1) of this subsection (k), in the event a lawful occupant is in
possession of the mortgaged real estate who has not been made a party to the foreclosure and had
his or her interests terminated therein, any personal property of the lawful occupant shall not be
deemed to have been abandoned, nor shall the rights of the lawful occupant to any personal
property be affected.
(l) Notices to be posted at property address.
(1) The notice set out in this paragraph (1) of this subsection (l) shall be conspicuously
posted at the property address at least 14 days before the hearing on the motion requesting an
expedited judgment and sale and shall be in boldface, in at least 12 point type, and in
substantially the following form:
"NOTICE TO ANY TENANT OR OTHER LAWFUL OCCUPANT OF THIS PROPERTY
A lawsuit has been filed to foreclose on this property, and the party asking to foreclose on this
property has asked a judge to find that THIS PROPERTY IS ABANDONED.
The judge will be holding a hearing to decide whether this property is ABANDONED.
IF YOU LAWFULLY OCCUPY ANY PART OF THIS PROPERTY, YOU MAY CHOOSE
TO GO TO THIS HEARING and explain to the judge how you are a lawful occupant of this
property.
If the judge is satisfied that you are a LAWFUL OCCUPANT of this property, the court will find
that this property is NOT ABANDONED.
This hearing will be held in the courthouse at the following address, date, and time:
Court name:...................................................
Court address:................................................
Court room number where hearing will be held:.................
(There should be a person in this room called a CLERK who can help you. Make sure you know
THIS PROPERTY’S ADDRESS.)
Date of hearing:..............................................
Time of hearing:..............................................
MORE INFORMATION
Name of lawsuit:..............................................
Number of lawsuit:............................................
Address of this property:.....................................
IMPORTANT
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This is NOT a notice to vacate the premises. You may wish to contact a lawyer or your local
legal aid or housing counseling agency to discuss any rights that you may have.
WARNING
INTENTIONAL REMOVAL OF THIS NOTICE BEFORE THE DATE AND TIME STATED
IN THIS NOTICE IS A CLASS B MISDEMEANOR, PUNISHABLE BY UP TO 180 DAYS
IN JAIL AND A FINE OF UP TO $1500, UNDER ILLINOIS LAW. 720 ILCS 5/21-3(a).
NO TRESPASSING
KNOWINGLY ENTERING THIS PROPERTY WITHOUT LAWFUL AUTHORITY IS A
CLASS B MISDEMEANOR, PUNISHABLE BY UP TO 180 DAYS IN JAIL AND A FINE OF
UP TO $1500, UNDER ILLINOIS LAW. 720 ILCS 5/21-3(a).".
(2) The notice set out in this paragraph (2) of this
subsection (l) shall be conspicuously posted at the property address at least 14 days before the
hearing to confirm the sale of the abandoned residential property and shall be in boldface, in at
least 12 point type, and in substantially the following form:
"NOTICE TO ANY TENANT OR OTHER LAWFUL
OCCUPANT OF THIS PROPERTY
A lawsuit has been filed to foreclose on this property, and the judge has found that THIS
PROPERTY IS ABANDONED. As a result, THIS PROPERTY HAS BEEN OR WILL BE
SOLD.
HOWEVER, there still must be a hearing for the judge to approve the sale. The judge will NOT
APPROVE this sale if the judge finds that any person lawfully occupies any part of this property.
IF YOU LAWFULLY OCCUPY ANY PART OF THIS PROPERTY, YOU MAY CHOOSE
TO GO TO THIS HEARING and explain to the judge how you are a lawful occupant of this
property. You also may appear BEFORE this hearing and explain to the judge how you are a
lawful occupant of this property.
If the judge is satisfied that you are a LAWFUL OCCUPANT of this property, the court will find
that this property is NOT ABANDONED, and there will be no sale of the property at this time.
This hearing will be held in the courthouse at the following address, date, and time:
Court name:...................................................
Court address:................................................
Court room number where hearing will be held:.................
(There should be a person in this room called a CLERK who can help you. Make sure you know
THIS PROPERTY’S ADDRESS.)
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Date of hearing:..............................................
Time of hearing:..............................................
MORE INFORMATION
Name of lawsuit:..............................................
Number of lawsuit:............................................
Address of this property:.....................................
IMPORTANT
This is NOT a notice to vacate the premises. You may wish to contact a lawyer or your local
legal aid or housing counseling agency to discuss any rights that you may have.
WARNING
INTENTIONAL REMOVAL OF THIS NOTICE BEFORE THE DATE AND TIME STATED
IN THIS NOTICE IS A CLASS B MISDEMEANOR, PUNISHABLE BY UP TO 180 DAYS
IN JAIL AND A FINE OF UP TO $1500, UNDER ILLINOIS LAW. 720 ILCS 5/21-3(a).
NO TRESPASSING
KNOWINGLY ENTERING THIS PROPERTY WITHOUT LAWFUL AUTHORITY IS A
CLASS B MISDEMEANOR, PUNISHABLE BY UP TO 180 DAYS IN JAIL AND A FINE OF
UP TO $1500, UNDER ILLINOIS LAW. 720 ILCS 5/21-3(a)."
(Source: P.A. 97-1164, eff. 6-1-13; 98-20, eff. 6-11-13.)
(735 ILCS 5/15-1506) (from Ch. 110, par. 15-1506)
Sec. 15-1506. Judgment.
(a) Evidence. In the trial of a foreclosure, the evidence to support the allegations of the
complaint shall be taken in open court, except:
(1) where an allegation of fact in the complaint is not denied by a party’s verified answer or
verified counterclaim, or where a party pursuant to subsection (b) of Section 2-610 of the Code
of Civil Procedure states, or is deemed to have stated, in its pleading that it has no knowledge of
such allegation sufficient to form a belief and attaches the required affidavit, a sworn verification
of the complaint or a separate affidavit setting forth such fact is sufficient evidence thereof
against such party and no further evidence of such fact shall be required; and
(2) where all the allegations of fact in the complaint have been proved by verification of the
complaint or affidavit, the court upon motion supported by an affidavit stating the amount which
is due the mortgagee, shall enter a judgment of foreclosure as requested in the complaint.
(b) Instruments. In all cases the evidence of the indebtedness and the mortgage foreclosed
shall be exhibited to the court and appropriately marked, and copies thereof shall be filed with
the court.
(c) Summary and Default Judgments. Nothing in this Section 15-1506 shall prevent a party
from obtaining a summary or default judgment authorized by Article II of the Code of Civil
Procedure.
33
(d) Notice of Entry of Default. When any judgment in a foreclosure is entered by default,
notice of such judgment shall be given in accordance with Section 2-1302 of the Code of Civil
Procedure.
(e) Matters Required in Judgment. A judgment of foreclosure shall include the last date for
redemption and all rulings of the court entered with respect to each request for relief set forth in
the complaint. The omission of the date for redemption shall not extend the time for redemption
or impair the validity of the judgment.
(f) Special Matters in Judgment. Without limiting the general authority and powers of the
court, special matters may be included in the judgment of foreclosure if sought by a party in the
complaint or by separate motion. Such matters may include, without limitation:
(1) a manner of sale other than public auction;
(2) a sale by sealed bid;
(3) an official or other person who shall be the officer to conduct the sale other than the one
customarily designated by the court;
(4) provisions for non-exclusive broker listings or designating a duly licensed real estate
broker nominated by one of the parties to exclusively list the real estate for sale;
(5) the fees or commissions to be paid out of the sale proceeds to the listing or other duly
licensed broker, if any, who shall have procured the accepted bid;
(6) the fees to be paid out of the sale proceeds to an auctioneer, if any, who shall have been
authorized to conduct a public auction sale;
(7) whether and in what manner and with what content signs shall be posted on the real
estate;
(8) a particular time and place at which such bids shall be received;
(9) a particular newspaper or newspapers in which notice of sale shall be published;
(10) the format for the advertising of such sale, including the size, content and format of
such advertising, and additional advertising of such sale;
(11) matters or exceptions to which title in the real estate may be subject at the sale;
(12) a requirement that title insurance in a specified form be provided to a purchaser at the
sale, and who shall pay for such insurance;
(13) whether and to what extent bids with mortgage or other contingencies will be allowed;
(14) such other matters as approved by the court to ensure sale of the real estate for the most
commercially favorable price for the type of real estate involved.
(g) Agreement of the Parties. If all of the parties agree in writing on the minimum price and
that the real estate may be sold to the first person who offers in writing to purchase the real estate
for such price, and on such other commercially reasonable terms and conditions as the parties
may agree, then the court shall order the real estate to be sold on such terms, subject to
confirmation of the sale in accordance with Section 15-1508.
(h) Postponement of Proving Priority. With the approval of the court prior to the entry of the
judgment of foreclosure, a party claiming an interest in the proceeds of the sale of the mortgaged
real estate may defer proving the priority of such interest until the hearing to confirm the sale.
(i) Effect of Judgment and Lien.
(1) Upon the entry of the judgment of foreclosure,all rights of a party in the foreclosure
against the mortgagor provided for in the judgment of foreclosure or this Article shall be secured
by a lien on the mortgaged real estate, which lien shall have the same priority as the claim to
which the judgment relates and shall be terminated upon confirmation of a judicial sale in
accordance with this Article.
34
(2) Upon the entry of the judgment of foreclosure, the rights in the real estate subject to the
judgment of foreclosure of (i) all persons made a party in the foreclosure and (ii) all nonrecord
claimants given notice in accordance with paragraph (2) of subsection (c) of Section 15-1502,
shall be solely as provided for in the judgment of foreclosure and in this Article.
(3) Entry of a judgment of foreclosure does not terminate or otherwise affect a bona fide
lease of a dwelling unit in residential real estate in foreclosure, whether or not the lessee has been
made a party in the foreclosure.
(Source: P.A. 98-514, eff. 11-19-13.)
(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.
(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 (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 (g1) 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
35
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
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 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
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.
(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
36
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.)
(735 ILCS 5/15-1507.1)
(Section scheduled to be repealed on March 2, 2016)
Sec. 15-1507.1. Judicial sale fee for Abandoned Residential Property Municipality Relief
Fund.
(a) Upon and at the sale of residential real estate under Section 15-1507, the purchaser shall
pay to the person conducting the sale pursuant to Section 15-1507 a fee for deposit into the
Abandoned Residential Property Municipality Relief Fund, a special fund created in the State
treasury. The fee shall be calculated at the rate of $1 for each $1,000 or fraction thereof of the
amount paid by the purchaser to the person conducting the sale, as reflected in the receipt of sale
issued to the purchaser, provided that in no event shall the fee exceed $300. No fee shall be paid
by the mortgagee acquiring the residential real estate pursuant to its credit bid at the sale or by
any mortgagee, judgment creditor, or other lienor acquiring the residential real estate whose
rights in and to the residential real estate arose prior to the sale. Upon confirmation of the sale
under Section 15-1508, the person conducting the sale shall remit the fee to the clerk of the court
in which the foreclosure case is pending. The clerk shall remit the fee to the State Treasurer as
provided in this Section, to be expended for the purposes set forth in Section 7.31 of the Illinois
Housing Development Act.
(b) All fees paid by purchasers as provided in this Section shall be disbursed within 60 days
after receipt by the clerk of the court as follows: (i) 98% to the State Treasurer for deposit into
the Abandoned Residential Property Municipality Relief Fund, and (ii) 2% to the clerk of the
court to be retained by the clerk for deposit into the Circuit Court Clerk Operation and
Administrative Fund to defray administrative expenses related to implementation of this Section.
(c) Not later than March 1 of each year, the clerk of the court shall submit to the Illinois
Housing Development Authority a report of the funds collected and remitted during the
preceding year pursuant to this Section.
(d) Subsections (a) and (b) of this Section shall become inoperative on January 1, 2016. This
Section is repealed on March 2, 2016.
(Source: P.A. 98-20, eff. 6-11-13.)
(735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508)
Sec. 15-1508. Report of Sale and Confirmation of Sale.
(a) Report. The person conducting the sale shall promptly make a report to the court, which
report shall include a copy of all receipts and, if any, certificate of sale.
(b) Hearing. Upon motion and notice in accordance with court rules applicable to motions
generally, which motion shall not be made prior to sale, the court shall conduct a hearing to
confirm the sale. Unless the court finds that (i) a notice required in accordance with subsection
(c) of Section 15-1507 was not given, (ii) the terms of sale were unconscionable, (iii) the sale
was conducted fraudulently, or (iv) justice was otherwise not done, the court shall then enter an
order confirming the sale. The confirmation order shall include a name, address, and telephone
37
number of the holder of the certificate of sale or deed issued pursuant to that certificate or, if no
certificate or deed was issued, the purchaser, whom a municipality or county may contact with
concerns about the real estate. The confirmation order may also:
(1) approve the mortgagee’s fees and costs arising between the entry of the judgment of
foreclosure and the confirmation hearing, those costs and fees to be allowable to the same extent
as provided in the note and mortgage and in Section 15-1504;
(2) provide for a personal judgment against any party for a deficiency; and
(3) determine the priority of the judgments of parties who deferred proving the priority
pursuant to subsection (h) of Section 15-1506, but the court shall not defer confirming the sale
pending the determination of such priority.
(b-3) Hearing to confirm sale of abandoned residential property. Upon motion and notice by
first-class mail to the last known address of the mortgagor, which motion shall be made prior to
the sale and heard by the court at the earliest practicable time after conclusion of the sale, and
upon the posting at the property address of the notice required by paragraph (2) of subsection (l)
of Section 15-1505.8, the court shall enter an order confirming the sale of the abandoned
residential property, unless the court finds that a reason set forth in items (i) through (iv) of
subsection (b) of this Section exists for not approving the sale, or an order is entered pursuant to
subsection (h) of Section 15-1505.8. The confirmation order also may address the matters
identified in items (1) through (3) of subsection (b) of this Section. The notice required under
subsection (b-5) of this Section shall not be required.
(b-5) Notice with respect to residential real estate. With respect to residential real estate, the
notice required under subsection (b) of this Section shall be sent to the mortgagor even if the
mortgagor has previously been held in default. In the event the mortgagor has filed an
appearance, the notice shall be sent to the address indicated on the appearance. In all other cases,
the notice shall be sent to the mortgagor at the common address of the foreclosed property. The
notice shall be sent by first class mail. Unless the right to possession has been previously
terminated by the court, the notice shall include the following language in 12-point boldface
capitalized type:
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO REMAIN
IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF POSSESSION, IN
ACCORDANCE WITH SECTION 15-1701(c) OF THE ILLINOIS MORTGAGE
FORECLOSURE LAW.
(b-10) Notice of confirmation order sent to municipality or county. A copy of the confirmation
order required under subsection (b) shall be sent to the municipality in which the foreclosed
property is located, or to the county within the boundary of which the foreclosed property is
located if the foreclosed property is located in an unincorporated territory. A municipality or
county must clearly publish on its website a single address to which a copy of the order shall be
sent. If a municipality or county does not maintain a website, then the municipality or county
must publicly post in its main office a single address to which a copy of the order shall be sent.
In the event that a municipality or county has not complied with the publication requirement in
this subsection (b-10), then a copy of the order shall be sent by first class mail, postage prepaid,
to the chairperson of the county board or county clerk in the case of a county, to the mayor or
city clerk in the case of a city, to the president of the board of trustees or village clerk in the case
of a village, or to the president or town clerk in the case of a town.
(b-15) Notice of confirmation order sent to known insurers. With respect to residential real
estate, the party filing the complaint shall send a copy of the confirmation order required under
38
subsection (b) by first class mail, postage prepaid, to the last known property insurer of the
foreclosed property. Failure to send or receive a copy of the order shall not impair or abrogate in
any way the rights of the mortgagee or purchaser or affect the status of the foreclosure
proceedings.
(c) Failure to Give Notice. If any sale is held without compliance with subsection (c) of
Section 15-1507 of this Article, any party entitled to the notice provided for in paragraph (3) of
that subsection (c) who was not so notified may, by motion supported by affidavit made prior to
confirmation of such sale, ask the court which entered the judgment to set aside the sale. Any
such party shall guarantee or secure by bond a bid equal to the successful bid at the prior sale,
unless the party seeking to set aside the sale is the mortgagor, the real estate sold at the sale is
residential real estate, and the mortgagor occupies the residential real estate at the time the
motion is filed. In that event, no guarantee or bond shall be required of the mortgagor. Any
subsequent sale is subject to the same notice requirement as the original sale.
(d) Validity of Sale. Except as provided in subsection (c) of Section 15-1508, no sale under
this Article shall be held invalid or be set aside because of any defect in the notice thereof or in
the publication of the same, or in the proceedings of the officer conducting the sale, except upon
good cause shown in a hearing pursuant to subsection (b) of Section 15-1508. At any time after a
sale has occurred, any party entitled to notice under paragraph (3) of subsection (c) of Section
15-1507 may recover from the mortgagee any damages caused by the mortgagee’s failure to
comply with such paragraph (3). Any party who recovers damages in a judicial proceeding
brought under this subsection may also recover from the mortgagee the reasonable expenses of
litigation, including reasonable attorney’s fees.
(d-5) Making Home Affordable Program. The court that entered the judgment shall set aside a
sale held pursuant to Section 15-1507, upon motion of the mortgagor at any time prior to the
confirmation of the sale, if the mortgagor proves by a preponderance of the evidence that (i) the
mortgagor has applied for assistance under the Making Home Affordable Program established by
the United States Department of the Treasury pursuant to the Emergency Economic Stabilization
Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, and (ii) the
mortgaged real estate was sold in material violation of the program’s requirements for
proceeding to a judicial sale. The provisions of this subsection (d-5), except for this sentence,
shall become inoperative on January 1, 2016 for all actions filed under this Article after
December 31, 2015, in which the mortgagor did not apply for assistance under the Making Home
Affordable Program on or before December 31, 2015.
(e) Deficiency Judgment. In any order confirming a sale pursuant to the judgment of
foreclosure, the court shall also enter a personal judgment for deficiency against any party (i) if
otherwise authorized and (ii) to the extent requested in the complaint and proven upon
presentation of the report of sale in accordance with Section 15-1508. Except as otherwise
provided in this Article, a judgment may be entered for any balance of money that may be found
due to the plaintiff, over and above the proceeds of the sale or sales, and enforcement may be had
for the collection of such balance, the same as when the judgment is solely for the payment of
money. Such judgment may be entered, or enforcement had, only in cases where personal service
has been had upon the persons personally liable for the mortgage indebtedness, unless they have
entered their appearance in the foreclosure action.
(f) Satisfaction. Upon confirmation of the sale, the judgment stands satisfied to the extent of
the sale price less expenses and costs. If the order confirming the sale includes a deficiency
39
judgment, the judgment shall become a lien in the manner of any other judgment for the payment
of money.
(g) The order confirming the sale shall include, notwithstanding any previous orders awarding
possession during the pendency of the foreclosure, an award to the purchaser of possession of the
mortgaged real estate, as of the date 30 days after the entry of the order, against the parties to the
foreclosure whose interests have been terminated.
An order of possession authorizing the removal of a person from possession of the mortgaged
real estate shall be entered and enforced only against those persons personally named as
individuals in the complaint or the petition under subsection (h) of Section 15-1701. No order of
possession issued under this Section shall be entered against a lessee with a bona fide lease of a
dwelling unit in residential real estate in foreclosure, whether or not the lessee has been made a
party in the foreclosure. An order shall not be entered and enforced against any person who is
only generically described as an unknown owner or nonrecord claimant or by another generic
designation in the complaint.
Notwithstanding the preceding paragraph, the failure to personally name, include, or seek an
award of possession of the mortgaged real estate against a person in the confirmation order shall
not abrogate any right that the purchaser may have to possession of the mortgaged real estate and
to maintain a proceeding against that person for possession under Article IX of this Code or, if
applicable, under subsection (h) of Section 15-1701; and possession against a person who (1) has
not been personally named as a party to the foreclosure and (2) has not been provided an
opportunity to be heard in the foreclosure proceeding may be sought only by maintaining a
proceeding under Article IX of this Code or, if applicable, under subsection (h) of Section 151701.
(h) With respect to mortgaged real estate containing 5 or more dwelling units, the order
confirming the sale shall also provide that (i) the mortgagor shall transfer to the purchaser the
security deposits, if any, that the mortgagor received to secure payment of rent or to compensate
for damage to the mortgaged real estate from any current occupant of a dwelling unit of the
mortgaged real estate, as well as any statutory interest that has not been paid to the occupant, and
(ii) the mortgagor shall provide an accounting of the security deposits that are transferred,
including the name and address of each occupant for whom the mortgagor holds the deposit and
the amount of the deposit and any statutory interest.
(Source: P.A. 97-333, eff. 8-12-11; 97-575, eff. 8-26-11; 97-1159, eff. 1-29-13; 97-1164, eff. 61-13; 98-514, eff. 11-19-13; 98-605, eff. 12-26-13.)
(735 ILCS 5/15-1508.5)
Sec. 15-1508.5. Notice by holder or purchaser to known occupants of dwelling units of
mortgaged real estate.
(a) The holder of the certificate of sale or deed issued pursuant to that certificate or, if no
certificate or deed was issued, the purchaser, shall:
(1) following the judicial sale under Section 15-1507, but no later than 21 days after the
confirmation of sale under Section 15-1508, make a good faith effort to ascertain the identities
and addresses of all occupants of dwelling units of the mortgaged real estate; and
(2) following the order confirming sale under Section 15-1508, but no later than 21 days
after the order confirming sale, notify all known occupants of dwelling units of the mortgaged
real estate that the holder or purchaser has acquired the mortgaged real estate. The notice shall be
in writing and shall:
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(i) identify the occupant being served by the name known to the holder or purchaser;
(ii) inform the occupant that the mortgaged real estate at which the dwelling unit is
located is the subject of a foreclosure and that control of the mortgaged real estate has changed;
(iii) provide the name, address, and telephone number of an individual or entity whom the
occupants may contact with concerns about the mortgaged real estate or to request repairs of that
property;
(iv) include the following language, or language that is substantially similar: "This is
NOT a notice to vacate the premises. You may wish to contact a lawyer or your local legal aid or
housing counseling agency to discuss any rights that you may have.";
(v) include the name of the case, the case number, and the court where the order
confirming the sale has been entered; and
(vi) provide instructions on the method of payment of future rent, if applicable.
(b) The written notice required by subsection (a) of this Section shall be served by delivering a
copy thereof to the known occupant, or by leaving the same with some person of the age of 13
years or upwards who is residing on or in possession of the premises, or by sending a copy of the
notice to the known occupant by first-class mail, addressed to the occupant by the name known
to the holder or purchaser.
(c) In the event that the holder or purchaser ascertains the identity and address of an occupant
of a dwelling unit of the mortgaged real estate more than 21 days after the confirmation of sale
under Section 15-1508, the holder or purchaser shall provide the notice required by subparagraph
(2) of subsection (a) within 7 days of ascertaining the identity and address of the occupant.
(d)(i) A holder or purchaser who fails to comply with subsections (a), (b), and (c) may not
collect any rent due and owing from a known occupant, or terminate a known occupant’s tenancy
for non-payment of such rent, until the holder or purchaser has served the notice described in
paragraph (2) of subsection (a) of this Section upon the known occupant. After providing such
notice, the holder or purchaser may collect any and all rent otherwise due and owing the holder
or purchaser from the known occupant and may terminate the known occupant’s tenancy for
non-payment of such rent if the holder or purchaser otherwise has such right to terminate.
(ii) An occupant who previously paid rent for the current rental period to the mortgagor, or
other entity with the authority to operate, manage, and conserve the mortgaged real estate at the
time of payment, shall not be held liable for that rent by the holder or purchaser, and the
occupant’s tenancy shall not be terminated for non-payment of rent for that rental period.
(e) Within 21 days of the confirmation of sale under Section 15-1508, the holder or purchaser
shall post a written notice on the primary entrance of each dwelling unit subject to the
foreclosure action. This notice shall:
(i) inform occupant that the dwelling unit is the subject of a foreclosure action and that
control of the mortgaged real estate has changed;
(ii) include the following language: "This is NOT a notice to vacate the premises.";
(iii) provide the name, address, and telephone number of the individual or entity whom
occupants may contact with concerns about the mortgaged real estate or to request repairs of the
property; and
(iv) provide instructions on the method of payment of future rent, if applicable.
(f)(i) The provisions of subsection (d) of this Section shall be the exclusive remedy for the
failure of a holder or purchaser to provide notice to a known occupant under this Section.
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(ii) This Section shall not abrogate any right that a holder or purchaser may have to possession
of the mortgaged real estate and to maintain a proceeding against an occupant of a dwelling unit
for possession under Article IX of this Code or subsection (h) of Section 15-1701.
(iii) In the event that the holder or purchaser is a mortgagee in possession of the mortgaged
real estate pursuant to Section 15-1703 at the time of the confirmation of sale and has complied
with requirements of subsection (a-5) of Section 15-1703, the holder or purchaser is excused
from the requirements of subsections (a) and (e) of this Section.
(iv) A holder or purchaser is not required to provide the notice required by this Section to a
mortgagor or party against whom an order of possession has been entered authorizing the
removal of the mortgagor or party pursuant to subsection (g) of Section 15-1508.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1509) (from Ch. 110, par. 15-1509)
Sec. 15-1509. Transfer of Title and Title Acquired.
(a) Deed. After (i) confirmation of the sale, and (ii) payment of the purchase price and any
other amounts required to be paid by the purchaser at sale, the court (or, if the court shall so
order, the person who conducted the sale or such person’s successor or some persons specifically
appointed by the court for that purpose), shall upon the request of the holder of the certificate of
sale (or the purchaser if no certificate of sale was issued), promptly execute a deed to the holder
or purchaser sufficient to convey title. Such deed shall identify the court and the caption of the
case in which judgment was entered authorizing issuance of the deed. Signature and the recital in
the deed of the title or authority of the person signing the deed as grantor, of authority pursuant
to the judgment and of the giving of the notices required by this Article is sufficient proof of the
facts recited and of such authority to execute the deed, but such deed shall not be construed to
contain any covenant on the part of the person executing it. If the deed issues to a grantee prior to
the expiration of the period for appealing the confirmation of sale, and the grantee conveys title
to another party within that period, that other party will not be deemed a bona fide purchaser
unless and until such period expires without an appeal having been filed or, an appeal having
been filed, such appeal is denied or withdrawn.
(b) Effect Upon Delivery of Deed. Delivery of the deed executed on the sale of the real estate,
even if the purchaser or holder of the certificate of sale is a party to the foreclosure, shall be
sufficient to pass the title thereto.
(c) Claims Barred. Any vesting of title by a consent foreclosure pursuant to Section 15-1402
or by deed pursuant to subsection (b) of Section 15-1509, unless otherwise specified in the
judgment of foreclosure, shall be an entire bar of (i) all claims of parties to the foreclosure and
(ii) all claims of any nonrecord claimant who is given notice of the foreclosure in accordance
with paragraph (2) of subsection (c) of Section 15-1502, notwithstanding the provisions of
subsection (g) of Section 2-1301 to the contrary. Any person seeking relief from any judgment or
order entered in the foreclosure in accordance with subsection (g) of Section 2-1301 of the Code
of Civil Procedure may claim only an interest in the proceeds of sale.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1509.5)
Sec. 15-1509.5. Notice at time of conveyance. Any deed executed pursuant to this Article or
judgment vesting title by a consent foreclosure pursuant to Section 15-1402 shall state the
42
grantee’s or mortgagee’s name (and the name of a contact person), street and mailing addresses,
and telephone number.
(Source: P.A. 96-110, eff. 7-31-09.)
(735 ILCS 5/15-1510) (from Ch. 110, par. 15-1510)
Sec. 15-1510. Attorney’s Fees and Costs.
(a) The court may award reasonable attorney’s fees and costs to the defendant who prevails in
a motion, an affirmative defense or counterclaim, or in the foreclosure action. A defendant who
exercises the defendant’s right of reinstatement or redemption shall not be considered a
prevailing party for purposes of this Section. Nothing in this subsection shall abrogate
contractual terms in the mortgage or other written agreement between the mortgagor and the
mortgagee or rights as otherwise provided in this Article which allow the mortgagee to recover
attorney’s fees and costs under subsection (b).
(b) Attorneys’ fees and other costs incurred in connection with the preparation, filing or
prosecution of the foreclosure suit shall be recoverable in a foreclosure only to the extent
specifically set forth in the mortgage or other written agreement between the mortgagor and the
mortgagee or as otherwise provided in this Article.
(Source: P.A. 95-961, eff. 1-1-09.)
(735 ILCS 5/15-1511) (from Ch. 110, par. 15-1511)
Sec. 15-1511. Deficiency. Except as expressly prohibited by this Article, foreclosure of a
mortgage does not affect a mortgagee’s rights, if any, to obtain a personal judgment against any
person for a deficiency.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1512) (from Ch. 110, par. 15-1512)
Sec. 15-1512. Application of Proceeds of Sale and Surplus. The proceeds resulting from a sale
of real estate under this Article shall be applied in the following order:
(a) the reasonable expenses of sale;
(b) the reasonable expenses of securing possession before sale, holding, maintaining, and
preparing the real estate for sale, including payment of taxes and other governmental charges,
premiums on hazard and liability insurance, receiver’s and management fees, and, to the extent
provided for in the mortgage or other recorded agreement and not prohibited by law, reasonable
attorneys’ fees, payments made pursuant to Section 15-1505 and other legal expenses incurred
by the mortgagee;
(c) if the sale was pursuant to judicial foreclosure, satisfaction of claims in the order of priority
adjudicated in the judgment of foreclosure or order confirming the sale; and
(d) remittance of any surplus to be held by the person appointed by the court to conduct the
sale until further order of the court. If there is a surplus, such person conducting the sale shall
send written notice to all parties to the proceeding advising them of the amount of the surplus,
and that the surplus shall be held until a party obtains a court order for its distribution or until, in
the absence of an order, the surplus is forfeited to the State.
(Source: P.A. 86-974.)
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(735 ILCS 5/Art. XV Pt. 16 heading)
Part 16. Reinstatement and Redemption
(735 ILCS 5/15-1601) (from Ch. 110, par. 15-1601)
Sec. 15-1601. Waiver of Rights of reinstatement and Redemption. (a) Residential and Certain
Agricultural Real Estate. Except as otherwise provided in this Article, no mortgagor of real estate
which is residential real estate at the time of such attempted waiver may waive the mortgagor’s
rights of reinstatement and redemption, or either of them, and any such waiver shall be void.
Except as otherwise provided in subsection (b) of this Section, no mortgagor of real estate which
is agricultural real estate at the time of such attempted waiver may waive the mortgagor’s rights
of reinstatement and redemption, or either of them, and any such waiver shall be void.
(b) Other Real Estate. Any corporation or any corporate trustee of any express trust who is a
mortgagor of agricultural real estate may waive the mortgagor’s right of redemption (i) by
express waiver stated in the mortgage or (ii) by any other waiver in writing which has been
acknowledged by the mortgagor and recorded. A mortgagor of real estate other than a mortgagor
of residential real estate or other mortgagor who is not otherwise so prohibited by this Article
may waive the mortgagor’s right of redemption (i) by express waiver stated in the mortgage or
(ii) by any other waiver in writing which has been acknowledged by the mortgagor and recorded.
(c) Waiver After Commencement of Foreclosure. After commencement of a foreclosure
proceeding under this Article a mortgagor of residential real estate or other mortgagor who is
otherwise so prohibited may waive the mortgagor’s rights of reinstatement and redemption, or
either of them, if (i) the mortgagor expressly consents in writing to the entry of a judgment
without such right of reinstatement or redemption, (ii) such written consent is filed with the clerk
of the court, and (iii) the mortgagee consents and agrees to waive any and all rights to a
deficiency judgment.
(d) Prior Waivers. Nothing contained in this Section shall invalidate any waiver of any right of
redemption made pursuant to Section 12-124 or Section 12-125 of the Code of Civil Procedure
in effect prior to July 1, 1987 which is contained in any instrument executed prior to July 1,
1987.
(Source: P.A. 85-907.)
(735 ILCS 5/15-1602) (from Ch. 110, par. 15-1602)
Sec. 15-1602. Reinstatement. In any foreclosure of a mortgage executed after July 21, 1959,
which has become due prior to the maturity date fixed in the mortgage, or in any instrument or
obligation secured by the mortgage, through acceleration because of a default under the
mortgage, a mortgagor may reinstate the mortgage as provided herein. Reinstatement is effected
by curing all defaults then existing, other than payment of such portion of the principal which
would not have been due had no acceleration occurred, and by paying all costs and expenses
required by the mortgage to be paid in the event of such defaults, provided that such cure and
payment are made prior to the expiration of 90 days 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. When service is made by publication, the
first date of publication shall be used for the calculation. Upon such reinstatement of the
mortgage, the foreclosure and any other proceedings for the collection or enforcement of the
obligation secured by the mortgage shall be dismissed and the mortgage documents shall remain
in full force and effect as if no acceleration or default had occurred. The relief granted by this
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Section shall not be exhausted by a single use thereof, but if the court has made an express
written finding that the mortgagor has exercised its right to reinstate pursuant to this Section,
such relief shall not be again available to the mortgagor under the same mortgage for a period of
five years from the date of the dismissal of such foreclosure. The provisions of Section 9-110 of
the Code of Civil Procedure shall be inapplicable with respect to any instrument which is
deemed a mortgage under this Article. The court may enter a judgment of foreclosure prior to the
expiration of the reinstatement period, subject to the right of the mortgagor to reinstate the
mortgage under this Section.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
Sec. 15-1603. Redemption.
(a) Owner of Redemption. Except as provided in subsection (b) of Section 15-1402, only an
owner of redemption may redeem from the foreclosure, and such owner of redemption may
redeem only during the redemption period specified in subsection (b) of Section 15-1603 and
only if the right of redemption has not been validly waived.
(b) Redemption Period.
(1) In the foreclosure of a mortgage of real estate which is residential real estate at the time
the foreclosure is commenced, the redemption period shall end on the later of (i) the date 7
months from the date the mortgagor or, if more than one, all the mortgagors (A) have been
served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the
court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.
(2) In all other foreclosures, the redemption period shall end on the later of (i) the date 6
months from the date the mortgagor or, if more than one, all the mortgagors (A) have been
served with summons or by publication or (B) have otherwise submitted to the jurisdiction of the
court, or (ii) the date 3 months from the date of entry of a judgment of foreclosure.
(3) Notwithstanding paragraphs (1) and (2), the redemption period shall end at the later of
the expiration of any reinstatement period provided for in Section 15-1602 or the date 60 days
after the date the judgment of foreclosure is entered, if the court finds that (i) the value of the
mortgaged real estate as of the date of the judgment is less than 90% of the amount specified
pursuant to subsection (d) of Section 15-1603 and (ii) the mortgagee waives any and all rights to
a personal judgment for a deficiency against the mortgagor and against all other persons liable
for the indebtedness or other obligations secured by the mortgage.
(4) Notwithstanding paragraphs (1) and (2), the redemption period shall end on the date 30
days after the date the judgment of foreclosure is entered if the court finds that the mortgaged
real estate has been abandoned. In cases where the redemption period is shortened on account of
abandonment, the reinstatement period shall not extend beyond the redemption period as
shortened.
(c) Extension of Redemption Period.
(1) Once expired, the right of redemption provided for in Sections 15-1603 or 15-1604 shall
not be revived. The period within which the right of redemption provided for in Sections 151603 or 15-1604 may be exercised runs independently of any action by any person to enforce the
judgment of foreclosure or effect a sale pursuant thereto. Neither the initiation of any legal
proceeding nor the order of any court staying the enforcement of a judgment of foreclosure or the
sale pursuant to a judgment or the confirmation of the sale, shall have the effect of tolling the
running of the redemption period.
45
(2) If a court has the authority to stay, and does stay, the running of the redemption period,
or if the redemption period is extended by any statute of the United States, the redemption period
shall be extended until the expiration of the same number of days after the expiration of the stay
order as the number of days remaining in the redemption period at the time the stay order
became effective, or, if later, until the expiration of 30 days after the stay order terminates. If the
stay order terminates more than 30 days prior to the expiration of the redemption period, the
redemption period shall not be extended.
(d) Amount Required to Redeem. The amount required to redeem shall be the sum of:
(1) The amount specified in the judgment of foreclosure, which shall consist of (i) all
principal and accrued interest secured by the mortgage and due as of the date of the judgment,
(ii) all costs allowed by law, (iii) costs and expenses approved by the court, (iv) to the extent
provided for in the mortgage and approved by the court, additional costs, expenses and
reasonable attorneys’ fees incurred by the mortgagee, (v) all amounts paid pursuant to Section
15-1505 and (vi) per diem interest from the date of judgment to the date of redemption calculated
at the mortgage rate of interest applicable as if no default had occurred; and
(2) The amount of other expenses authorized by the court which the mortgagee reasonably
incurs between the date of judgment and the date of redemption, which shall be the amount
certified by the mortgagee in accordance with subsection (e) of Section 15-1603.
(e) Notice of Intent to Redeem. An owner of redemption who intends to redeem shall give
written notice of such intent to redeem to the mortgagee’s attorney of record specifying the date
designated for redemption and the current address of the owner of redemption for purposes of
receiving notice. Such owner of redemption shall file with the clerk of the court a certification of
the giving of such notice. The notice of intent to redeem must be received by the mortgagee’s
attorney at least 15 days (other than Saturday, Sunday or court holiday) prior to the date
designated for redemption. The mortgagee shall thereupon file with the clerk of the court and
shall give written notice to the owner of redemption at least three days (other than Saturday,
Sunday or court holiday) before the date designated for redemption a certification, accompanied
by copies of paid receipts or appropriate affidavits, of any expenses authorized in paragraph (2)
of subsection (d) of Section 15-1603. If the mortgagee fails to serve such certification within the
time specified herein, then the owner of redemption intending to redeem may redeem on the date
designated for redemption in the notice of intent to redeem, and the mortgagee shall not be
entitled to payment of any expenses authorized in paragraph (2) of subsection (d) of Section 151603.
(f) Procedure for Redemption.
(1) An owner of redemption may redeem the real estate from the foreclosure by paying the
amount specified in subsection (d) of Section 15-1603 to the mortgagee or the mortgagee’s
attorney of record on or before the date designated for redemption pursuant to subsection (e) of
Section 15-1603.
(2) If the mortgagee refuses to accept payment or if the owner of redemption redeeming
from the foreclosure objects to the reasonableness of the additional expenses authorized in
paragraph (2) of subsection (d) of Section 15-1603 and certified in accordance with subsection
(e) of Section 15-1603, the owner of redemption shall pay the certified amount to the clerk of the
court on or before the date designated for redemption, together with a written statement
specifying the expenses to which objection is made. In such case the clerk shall pay to the
mortgagee the amount tendered minus the amount to which the objection pertains.
46
(3) Upon payment to the clerk, whether or not the owner of redemption files an objection at
the time of payment, the clerk shall give a receipt of payment to the person redeeming from the
foreclosure, and shall file a copy of that receipt in the foreclosure record. Upon receipt of the
amounts specified to be paid to the mortgagee pursuant to this Section, the mortgagee shall
promptly furnish the mortgagor with a release of the mortgage or satisfaction of the judgment, as
appropriate, and the evidence of all indebtedness secured by the mortgage shall be cancelled.
(g) Procedure Upon Objection. If an objection is filed by an owner of redemption in
accordance with paragraph (2) of subsection (f) of Section 15-1603, the clerk shall hold the
amount to which the objection pertains until the court orders distribution of those funds. The
court shall hold a hearing promptly to determine the distribution of any funds held by the clerk
pursuant to such objection. Each party shall pay its own costs and expenses in connection with
any objection, including attorneys’ fees, subject to Section 2-611 of the Code of Civil Procedure.
(h) Failure to Redeem. Unless the real estate being foreclosed is redeemed from the
foreclosure, it shall be sold as provided in this Article.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1604) (from Ch. 110, par. 15-1604)
Sec. 15-1604. Special Right to Redeem.
(a) Circumstances. With respect to residential real estate, if (i) the purchaser at the sale was a
mortgagee who was a party to the foreclosure or its nominee and (ii) the sale price was less than
the amount specified in subsection (d) of Section 15-1603, then, and only in such circumstances,
an owner of redemption as specified in subsection (a) of Section 15-1603 shall have a special
right to redeem, for a period ending 30 days after the date the sale is confirmed, by paying to the
mortgagee (i) the sale price, (ii) all additional costs and expenses incurred by the mortgagee set
forth in the report of sale and confirmed by the court, and (iii) interest at the statutory judgment
rate from the date the purchase price was paid or credited as an offset.
(b) Procedure. Upon receipt of such amount, the mortgagee shall assign to the redeeming
owner of redemption its certificate of sale or its right to such certificate or to a deed. The
mortgagee shall give to the redeeming owner of redemption an executed duplicate of such
assignment, marked "Duplicate", which duplicate the owner of redemption shall file with the
court. If a deed has been issued to the mortgagee or its nominee, the holder of such deed, or such
holder’s successor in title, shall execute and deliver a deed conveying the mortgaged real estate
to the redeeming owner of redemption subject only to those encumbrances that would normally
arise on title if a redemption were made under Section 15-1603, including a deficiency, if any,
resulting from the foreclosure sale. Nothing contained herein shall affect the right to a personal
or in rem deficiency judgment, and enforcement thereof shall be allowed as provided by law.
Any deficiency judgment shall retain the same priority on title as did the mortgage from which it
arose. The mortgagee, its nominee or its successors in title shall not permit encumbrances on title
arising on or after the date of the deed to the mortgagee or nominee caused by or relating to the
mortgagee or its nominee or its successors in title.
(Source: P.A. 86-974.)
(735 ILCS 5/15-1605) (from Ch. 110, par. 15-1605)
Sec. 15-1605. Equitable Right of Redemption. No equitable right of redemption shall exist or
be enforceable under or with respect to a mortgage after a judicial sale of the mortgaged real
47
estate pursuant to Section 15-1507 or after entry of a judgment of foreclosure pursuant to
Sections 15-1402 or 15-1403.
(Source: P.A. 84-1462.)
(735 ILCS 5/Art. XV Pt. 17 heading)
Part 17. Possession During Foreclosure
(735 ILCS 5/15-1701) (from Ch. 110, par. 15-1701)
Sec. 15-1701. Right to possession.
(a) General. The provisions of this Article shall govern the right to possession of the
mortgaged real estate during foreclosure. Possession under this Article includes physical
possession of the mortgaged real estate to the same extent to which the mortgagor, absent the
foreclosure, would have been entitled to physical possession. For the purposes of Part 17, real
estate is residential real estate only if it is residential real estate at the time the foreclosure is
commenced.
(b) Pre-Judgment. Prior to the entry of a judgment of foreclosure:
(1) In the case of residential real estate, the mortgagor shall be entitled to possession of the
real estate except if (i) the mortgagee shall object and show good cause, (ii) the mortgagee is so
authorized by the terms of the mortgage or other written instrument, and (iii) the court is satisfied
that there is a reasonable probability that the mortgagee will prevail on a final hearing of the
cause, the court shall upon request place the mortgagee in possession. If the residential real estate
consists of more than one dwelling unit, then for the purpose of this Part residential real estate
shall mean only that dwelling unit or units occupied by persons described in clauses (i), (ii) and
(iii) of Section 15-1219.
(2) In all other cases, if (i) the mortgagee is so authorized by the terms of the mortgage or
other written instrument, and (ii) the court is satisfied that there is a reasonable probability that
the mortgagee will prevail on a final hearing of the cause, the mortgagee shall upon request be
placed in possession of the real estate, except that if the mortgagor shall object and show good
cause, the court shall allow the mortgagor to remain in possession.
(c) Judgment Through 30 Days After Sale Confirmation. After the entry of a judgment of
foreclosure and through the 30th day after a foreclosure sale is confirmed:
(1) Subsection (b) of Section 15-1701 shall be applicable, regardless of the provisions of the
mortgage or other instrument, except that after a sale pursuant to the judgment the holder of the
certificate of sale (or, if none, the purchaser at the sale) shall have the mortgagee’s right to be
placed in possession, with all rights and duties of a mortgagee in possession under this Article.
(2) Notwithstanding paragraph (1) of subsection (b) and paragraph (1) of subsection (c) of
Section 15-1701, upon request of the mortgagee, a mortgagor of residential real estate shall not
be allowed to remain in possession between the expiration of the redemption period and through
the 30th day after sale confirmation unless (i) the mortgagor pays to the mortgagee or such
holder or purchaser, whichever is applicable, monthly the lesser of the interest due under the
mortgage calculated at the mortgage rate of interest applicable as if no default had occurred or
the fair rental value of the real estate, or (ii) the mortgagor otherwise shows good cause. Any
amounts paid by the mortgagor pursuant to this subsection shall be credited against the amounts
due from the mortgagor.
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(d) After 30 Days After Sale Confirmation. The holder of the certificate of sale or deed issued
pursuant to that certificate or, if no certificate or deed was issued, the purchaser, except to the
extent the holder or purchaser may consent otherwise, shall be entitled to possession of the
mortgaged real estate, as of the date 30 days after the order confirming the sale is entered,
against those parties to the foreclosure whose interests the court has ordered terminated, without
further notice to any party, further order of the court, or resort to proceedings under any other
statute other than this Article. This right to possession shall be limited by the provisions
governing entering and enforcing orders of possession under subsection (g) of Section 15-1508.
If the holder or purchaser determines that there are occupants of the mortgaged real estate who
have not been made parties to the foreclosure and had their interests terminated therein, the
holder or purchaser may bring a proceeding under subsection (h) of this Section, if applicable, or
under Article IX of this Code to terminate the rights of possession of any such occupants. The
holder or purchaser shall not be entitled to proceed against any such occupant under Article IX of
this Code until after 30 days after the order confirming the sale is entered.
(e) Termination of Leases. A lease of all or any part of the mortgaged real estate shall not be
terminated automatically solely by virtue of the entry into possession by (i) a mortgagee or
receiver prior to the entry of an order confirming the sale, (ii) the holder of the certificate of sale,
(iii) the holder of the deed issued pursuant to that certificate, or (iv) if no certificate or deed was
issued, the purchaser at the sale.
(f) Other Statutes; Instruments. The provisions of this Article providing for possession of
mortgaged real estate shall supersede any other inconsistent statutory provisions. In particular,
and without limitation, whenever a receiver is sought to be appointed in any action in which a
foreclosure is also pending, a receiver shall be appointed only in accordance with this Article.
Except as may be authorized by this Article, no mortgage or other instrument may modify or
supersede the provisions of this Article.
(g) Certain Leases. Leases of the mortgaged real estate entered into by a mortgagee in
possession or a receiver and approved by the court in a foreclosure shall be binding on all parties,
including the mortgagor after redemption, the purchaser at a sale pursuant to a judgment of
foreclosure and any person acquiring an interest in the mortgaged real estate after entry of a
judgment of foreclosure in accordance with Sections 15-1402 and 15-1403.
(h) Proceedings Against Certain Occupants.
(1) The mortgagee-in-possession of the mortgaged real estate under Section 15-1703, a
receiver appointed under Section 15-1704, a holder of the certificate of sale or deed, or the
purchaser may, at any time during the pendency of the foreclosure and up to 90 days after the
date of the order confirming the sale, file a supplemental petition for possession against a person
not personally named as a party to the foreclosure. This subsection (h) does not apply to any
lessee with a bona fide lease of a dwelling unit in residential real estate in foreclosure.
(2) The supplemental petition for possession shall name each such occupant against whom
possession is sought and state the facts upon which the claim for relief is premised.
(3) The petitioner shall serve upon each named occupant the petition, a notice of hearing on
the petition, and, if any, a copy of the certificate of sale or deed. The proceeding for the
termination of such occupant’s possessory interest, including service of the notice of the hearing
and the petition, shall in all respects comport with the requirements of Article IX of this Code,
except as otherwise specified in this Section. The hearing shall be no less than 21 days from the
date of service of the notice.
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(4) The supplemental petition shall be heard as part of the foreclosure proceeding and
without the payment of additional filing fees. An order for possession obtained under this
Section shall name each occupant whose interest has been terminated, shall recite that it is only
effective as to the occupant so named and those holding under them, and shall be enforceable for
no more than 120 days after its entry, except that the 120-day period may be extended to the
extent and in the manner provided in Section 9-117 of Article IX and except as provided in item
(5) of this subsection (h).
(5) In a case of foreclosure where the occupant is current on his or her rent, or where timely
written notice of to whom and where the rent is to be paid has not been provided to the occupant,
or where the occupant has made good-faith efforts to make rental payments in order to keep
current, any order of possession must allow the occupant to retain possession of the property
covered in his or her rental agreement (i) for 120 days following the notice of the hearing on the
supplemental petition that has been properly served upon the occupant, or (ii) through the
duration of his or her lease, whichever is shorter, provided that if the duration of his or her lease
is less than 30 days from the date of the order, the order shall allow the occupant to retain
possession for 30 days from the date of the order. A mortgagee in possession, receiver, holder of
a certificate of sale or deed, or purchaser at the judicial sale, who asserts that the occupant is not
current in rent, shall file an affidavit to that effect in the supplemental petition proceeding. If the
occupant has been given timely written notice of to whom and where the rent is to be paid, this
item (5) shall only apply if the occupant continues to pay his or her rent in full during the 120day period or has made good-faith efforts to pay the rent in full during that period.
(6) The court records relating to a supplemental petition for possession filed under this
subsection (h) against an occupant who is entitled to notice under item (5) of this subsection (h),
or relating to a forcible entry and detainer action brought against an occupant who would have
lawful possession of the premises but for the foreclosure of a mortgage on the property, shall be
ordered sealed and shall not be disclosed to any person, other than a law enforcement officer or
any other representative of a governmental entity, except upon further order of the court.
(i) Termination of bona fide leases. The holder of the certificate of sale, the holder of the deed
issued pursuant to that certificate, or, if no certificate or deed was issued, the purchaser at the
sale shall not terminate a bona fide lease of a dwelling unit in residential real estate in
foreclosure except pursuant to Article IX of this Code.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1702) (from Ch. 110, par. 15-1702)
Sec. 15-1702. Specific Rules of Possession. (a) Mortgagee’s Rights. No mortgagee shall be
required to take possession of the mortgaged real estate, whether upon application made by any
other party or otherwise. Whenever a mortgagee entitled to possession so requests, the court shall
appoint a receiver. The failure of a mortgagee to request possession or appointment of a receiver
shall not preclude a mortgagee otherwise entitled to possession from making such a request at
any future time. The appointment of a receiver shall not preclude a mortgagee from thereafter
seeking to exercise such mortgagee’s right to be placed in possession.
(b) Designation of Receivers. Whenever a receiver is to be appointed, the mortgagee shall be
entitled to designate the receiver. If the mortgagor or any other party to the foreclosure objects to
any such designation or designations and shows good cause, or the court disapproves the
designee, the mortgagee in such instance shall be entitled to make another designation.
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(c) Rights of Mortgagee Having Priority. If a mortgagee having priority objects to the
proposed possession by a subordinate mortgagee or by a receiver designated by the subordinate
mortgagee, upon entry of a finding in accordance with subsection (d) of Section 15-1702 the
court shall instead place that objecting mortgagee in possession or, if a receiver is to be
designated in accordance with subsection (b) of Section 15-1702, allow the designation of the
receiver to be made by that objecting mortgagee.
(d) Removal of Mortgagee in Possession. A mortgagee placed in possession shall not be
removed from possession, and no receiver or other mortgagee shall be placed in possession
except upon (i) the mortgagee’s misconduct, death, legal disability or other inability to act, (ii)
appointment of a receiver in accordance with subsection (a) of Section 15-1704 or (iii) a showing
of good cause by a mortgagee having priority. A receiver shall not be removed solely on account
of being designated by a mortgagee later determined not to have priority.
(e) Determination of Priority. If the court is required to determine priority for the purposes of
subsection (c) of Section 15-1702, a new determination shall be made each time a mortgagee is
to be placed in possession or a receiver is to be appointed and shall be an interim determination
which shall not preclude the court from making a contrary determination later in the foreclosure.
If the court subsequently shall make such a contrary determination, a mortgagee in possession or
acting receiver shall not be removed except in accordance with Part 17 of this Article.
(f) Rights to Crops. With respect to any crops growing or to be grown on the mortgaged real
estate, the rights of a holder of any obligation secured by a collateral assignment of beneficial
interest in a land trust, the rights of a mortgagee in possession, or the rights of a receiver,
including rights by virtue of an equitable lien, shall be subject to a security interest properly
perfected pursuant to Article 9 of the Uniform Commercial Code, where the holder of a collateral
assignment, mortgagee in possession, or receiver becomes entitled to crops by obtaining
possession on or after the effective date of this Amendatory Act of 1988.
(Source: P.A. 85-1427.)
(735 ILCS 5/15-1703) (from Ch. 110, par. 15-1703)
Sec. 15-1703. Mortgagee in Possession.
(a) Powers and Duties. A mortgagee placed in possession of the real estate pursuant to Section
15-1701 or Section 15-1702 shall have:
(1) such power and authority with respect to the real estate and other property subject to the
mortgage, including the right to receive the rents, issues and profits thereof, as may have been
conferred upon the mortgagee by the terms of the mortgage or other written instrument
authorizing the taking of possession;
(2) all other rights and privileges of a mortgagee in possession under law not inconsistent
herewith; and
(3) the same powers, duties and liabilities as a receiver appointed for the real estate in
accordance with this Article. If an order placing a mortgagee in possession is modified, revoked
or set aside, the mortgagee shall not be liable for any damages to the extent such damages arise
solely out of the fact that the mortgagor was removed from possession or that the mortgagee was
placed in possession.
(a-5) Notice to occupants.
(1) Following the order placing the mortgagee in possession of the mortgaged real estate,
but no later than 21 days after the entry of such order, the mortgagee in possession shall make a
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good faith effort to ascertain the identities and addresses of all occupants of dwelling units of the
mortgaged real estate.
(2) Following the order placing the mortgagee in possession of the mortgaged real estate,
but no later than 21 days after the entry of such order, the mortgagee in possession shall notify
all known occupants of dwelling units of the mortgaged real estate that the mortgagee has taken
possession of the mortgaged real estate. The notice shall be in writing and shall:
(i) identify the occupant being served by the name known to the mortgagee in possession;
(ii) inform the occupant that the mortgaged real estate at which the dwelling unit is
located is the subject of a foreclosure action and that control of the mortgaged real estate has
changed;
(iii) provide the name, address, and telephone number of the individual or entity whom
occupants may contact with concerns about the mortgaged real estate or to request repairs of that
property;
(iv) include the following language, or language that is substantially similar: "This is
NOT a notice to vacate the premises. You may wish to contact a lawyer or your local legal aid or
housing counseling agency to discuss any rights that you may have.";
(v) include the name of the case, the case number, and the court where the foreclosure
action is pending; and
(vi) provide instructions on the method of payment of future rent, if applicable.
(3) The written notice required by item (2) of this subsection (a-5) shall be served by
delivering a copy thereof to the known occupant, or by leaving the same with some person of the
age of 13 years or upwards, who is residing on or in possession of the premises; or by sending a
copy of the notice to the known occupant by first-class mail, addressed to the occupant by the
name known to the mortgagee in possession.
(4) In the event that a mortgagee in possession ascertains the identity and address of an
occupant of a dwelling unit of the mortgaged real estate more than 21 days after being placed in
possession of the mortgaged real estate pursuant to Section 15-1703, the mortgagee in possession
shall provide the notice required by item (2) of this subsection (a-5) within 7 days of ascertaining
the identity and address of the occupant.
(5)(i) A mortgagee in possession who fails to comply with items (1), (2), (3), and (4) of this
subsection (a-5) may not collect any rent due and owing from a known occupant, or terminate a
known occupant’s tenancy for non-payment of such rent, until the mortgagee in possession has
served the notice described in item (2) of this subsection (a-5) upon the known occupant. After
providing such notice, the mortgagee in possession may collect any and all rent otherwise due
and owing the mortgagee in possession from the known occupant and may terminate the known
occupant’s tenancy for non-payment of such rent if the mortgagee in possession otherwise has
such right to terminate.
(ii) An occupant who previously paid rent for the current rental period to the mortgagor, or
other entity with the authority to operate, manage, and conserve the mortgaged real estate at the
time of payment, shall not be held liable for that rent by the mortgagee in possession, and the
occupant’s tenancy shall not be terminated for non-payment of rent for that rental period.
(6) Within 21 days of the order placing the mortgagee in possession of the mortgaged real
estate, the mortgagee in possession shall post a written notice on the primary entrance of each
dwelling unit subject to the foreclosure action that informs the occupants that the mortgagee in
possession is now operating and managing the mortgaged real estate. This notice shall:
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(i) inform occupant that the dwelling unit is the subject of a foreclosure action and that
control of the mortgaged real estate has changed;
(ii) include the following language: "This is NOT a notice to vacate the premises.";
(iii) provide the name, address, and telephone number of the individual or entity whom
occupants may contact with concerns about the mortgaged real estate or to request repairs of the
property; and
(iv) provide instructions on the method of payment of future rent, if applicable.
(7)(i) The provisions of item (5) of this subsection (a-5) shall be the exclusive remedy for
the failure of a mortgagee in possession to provide notice to a known occupant under this
Section.
(ii) This Section shall not abrogate any right that a mortgagee in possession may have to
possession of the mortgaged real estate and to maintain a proceeding against an occupant of a
dwelling unit for possession under Article IX of this Code or subsection (h) of Section 15-1701.
(b) Fees and Expenses. A mortgagee in possession shall not be entitled to any fees for so
acting, but shall be entitled to reimbursement for reasonable costs, expenses and third party
management fees incurred in connection with such possession.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1704) (from Ch. 110, par. 15-1704)
Sec. 15-1704. Receivers.
(a) Receiver. Notwithstanding the provisions of subsections (b), (c) and (d) of Section 151701, and except as provided in Section 15-1702, upon request of any party and a showing of
good cause, the court shall appoint a receiver for the mortgaged real estate.
(b) Powers. A receiver appointed pursuant to this Article shall have possession of the
mortgaged real estate and other property subject to the mortgage during the foreclosure, shall
have full power and authority to operate, manage and conserve such property, and shall have all
the usual powers of receivers in like cases. Without limiting the foregoing, a receiver shall have
the power and authority to:
(1) secure tenants and execute leases for the real estate, the duration and terms of which are
reasonable and customary for the type of use involved, and such leases shall have the same
priority as if made by the owner of the real estate; but, unless approved by the Court, the receiver
shall not execute oil, gas or other mineral leases, or (even if otherwise allowed by law) leases
extending beyond the time of the receiver’s possession; provided, however, with respect to
residential real estate leased by the receiver, nothing in this Section shall affect the legal rights of
any lessee with respect to the safety and habitability of the residential real estate;
(2) collect the rents, issues and profits from the mortgaged real estate;
(3) insure the mortgaged real estate against loss by fire or other casualty;
(4) employ counsel, custodians, janitors and other help; and
(5) pay taxes which may have been or may be levied against the mortgaged real estate.
(c) Duties. A receiver appointed pursuant to this Article must manage the mortgaged real
estate as would a prudent person, taking into account the effect of the receiver’s management on
the interest of the mortgagor. A receiver may, without an order of the court, delegate managerial
functions to a person in the business of managing real estate of the kind involved who is
financially responsible, not related to the mortgagee or receiver and prudently selected.
However, the receiver shall remain responsible to the mortgagor or other persons for the acts or
omissions of such management agent. When fees are paid to such a management agent, the
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receiver’s fees may be adjusted to the extent the court deems appropriate. In managing the
mortgaged real estate and other property subject to the mortgage, a receiver or receiver’s
delegate, to the extent the receiver receives sufficient receipts from the mortgaged real estate,
such other property or other sources, except to the extent ordered otherwise by the court:
(1) shall maintain the existing casualty and liability insurance required in accordance with
the mortgage or applicable to the real estate and other property subject to the mortgage at the
time the receiver took possession;
(2) shall use reasonable efforts to maintain the real estate and other property subject to the
mortgage in at least as good condition as existed at the time the receiver took possession,
excepting reasonable wear and tear and damage by any casualty;
(2.5) shall accept all rental payments from an occupant of the mortgaged property, and any
payments from a third party or any rental assistance program in support of an occupant’s
housing;
(3) shall apply receipts to payment of ordinary operating expenses, including royalties, rents
and other expenses of management;
(4) shall pay any shared or common expense assessments due to any association of owners
of interests in real estate to the extent that such assessments are or may become a lien against the
mortgaged real estate;
(5) may pay the amounts due under any mortgage if the mortgagee thereof is not a party in
the foreclosure;
(6) may carry such additional casualty and liability insurance as is reasonably available and
reasonable as to amounts and risks covered;
(7) may make other repairs and improvements necessary to comply with building, housing,
and other similar codes or with existing contractual obligations affecting the mortgaged real
estate;
(8) may hold receipts as reserves reasonably required for the foregoing purposes; and
(9) may take such other actions as may be reasonably necessary to conserve the mortgaged
real estate and other property subject to the mortgage, or as otherwise authorized by the court.
(d) Allocation of Receipts. Receipts received from operation of the real estate and other
property subject to the mortgage by the receiver shall be applied in the following order of
priority.
(1) to reimbursement of the receiver for all reasonable costs and expenses incurred by the
receiver or the receiver’s delegates;
(2) to payment of insurance premiums authorized in paragraph (1) of subsection (c) of
Section 15-1704;
(3) to payment of the receiver’s delegates of any reasonable management fees for managing
real estate of the type involved;
(4) to payment of receiver’s fees allowed by the court;
(5) to payment of expenses authorized in paragraphs (2), (3) and (4) of subsection (c) of
Section 15-1704;
(6) to payment of amounts authorized in paragraph (5) of subsection (c) of Section 15-1704;
(7) to payment of expenses authorized in paragraphs
(6) and (7) of subsection (c) of Section 15-1704; and (8) the balance, if any, shall be held or
disbursed as ordered by the court.
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(e) Non-Liability for Allocations. A receiver shall in no event be liable to any person for the
allocation of, or failure to allocate, receipts to possible expenditures within the same priority
category.
(f) Notice to occupants.
(1) Following an order appointing a receiver pursuant to Section 15-1704, but no later than
21 days after the entry of such order, the appointed receiver shall make a good faith effort to
ascertain the identities and addresses of all occupants of dwelling units of the mortgaged real
estate.
(2) Following an order appointing a receiver pursuant to Section 15-1704, but no later than
21 days after the entry of such order, the appointed receiver shall notify all known occupants of
dwelling units of the mortgaged real estate that the receiver has been appointed receiver of the
mortgaged real estate. Such notice shall be in writing and shall:
(i) identify the occupant being served by the name known to the receiver;
(ii) inform the occupant that the mortgaged real estate at which the dwelling unit is
located is the subject of a foreclosure action and that control of the mortgaged real estate has
changed;
(iii) provide the name, address, and telephone number of the individual or entity whom
occupants may contact with concerns about the mortgaged real estate or to request repairs of that
property;
(iv) include the following language, or language that is substantially similar: "This is
NOT a notice to vacate the premises. You may wish to contact a lawyer or your local legal aid or
housing counseling agency to discuss any rights that you may have.";
(v) include the name of the case, the case number, and the court where the foreclosure
action is pending; and
(vi) provide instructions on the method of payment of future rent, if applicable.
(3) The written notice required by item (2) of this subsection (f) shall be served by
delivering a copy thereof to the known occupant, or by leaving the same with some person of the
age of 13 years or upwards, who is residing on or in possession of the premises; or by sending a
copy of the notice to the known occupant by first-class mail, addressed to the occupant by the
name known to the receiver.
(4) In the event that a receiver ascertains the identity and address of an occupant of a
dwelling unit of the mortgaged real estate more than 21 days after appointment pursuant to
Section 15-1704, the receiver shall provide the notice required by item (2) of this subsection (f)
within 7 days of ascertaining the identity and address of the occupant.
(5)(i) A receiver who fails to comply with items (1), (2), (3), and (4) of this subsection (f)
may not collect any rent due and owing from a known occupant, or terminate a known
occupant’s tenancy for non-payment of such rent, until the receiver has served the notice
described in item (2) of this subsection (f) upon the known occupant. After providing such
notice, the receiver may collect any and all rent otherwise due and owing the receiver from the
known occupant and may terminate the known occupant’s tenancy for non-payment of such rent
if the receiver otherwise has such right to terminate.
(ii) An occupant who previously paid rent for the current rental period to the mortgagor, or
other entity with the authority to operate, manage, and conserve the mortgaged real estate at the
time of payment, shall not be held liable for that rent by the receiver, and the occupant’s tenancy
shall not be terminated for non-payment of rent for that rental period.
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(6) Within 21 days of appointment, the receiver shall post a written notice on the primary
entrance of each dwelling unit subject to the foreclosure action that informs occupants that the
receiver has been appointed to operate and manage the property. This notice shall:
(i) inform occupant that the dwelling unit is the subject of a foreclosure action and that
control of the mortgaged real estate has changed;
(ii) include the following language: "This is NOT a notice to vacate the premises.";
(iii) provide the name, address, and telephone number of the individual or entity whom
occupants may contact with concerns about the mortgaged real estate or to request repairs of the
property; and
(iv) provide instructions on the method of payment of future rent, if applicable.
(7)(i) The provisions of item (5) of this subsection (f) shall be the exclusive remedy for the
failure of a receiver to provide notice to a known occupant under this Section.
(ii) This Section shall not abrogate any right that a receiver may have to possession of the
mortgaged real estate and to maintain a proceeding against an occupant of a dwelling unit for
possession under Article IX of this Code or subsection (h) of Section 15-1701.
(g) Increase of rents. Notwithstanding any other provision of this Article, a receiver shall not
charge an occupant of the mortgaged real estate a rental amount above that which the occupant
had been paying for use and occupancy of the mortgaged real estate prior to the appointment of a
receiver without leave of court. The court may allow an increase of rent if, upon motion by the
receiver, the court finds by a preponderance of the evidence, that the increase of rent is necessary
to operate, manage, and conserve the mortgaged real estate pursuant to this Section. A list of the
current rents for each unit in the mortgaged real estate, and a list of the proposed rent increase for
each of those units, must be attached to a motion for a rent increase under this subsection (g). All
occupants of the mortgaged real estate who may be affected by the motion for a rent increase, if
not otherwise entitled to notice, shall be notified in writing of the nature of the motion, the date
and time of the motion, and the court where the motion will be heard. Such notice shall be by
personal service or first-class mail. In the event that the receiver and an occupant of a dwelling
unit agree to a rent increase for that dwelling unit, the receiver is excused from the requirements
of this subsection (g) as to that dwelling unit. Nothing in this subsection (g) shall alter the terms
of any lease agreement.
(h) Removal. The court may remove a receiver upon a showing of good cause, in which case a
new receiver may be appointed in accordance with subsection (b) of Section 15-1702 and
subsection (a) of Section 15-1704.
(Source: P.A. 98-514, eff. 11-19-13.)
(735 ILCS 5/15-1705) (from Ch. 110, par. 15-1705)
Sec. 15-1705. Bond. (a) Mortgagee in Possession. Upon good cause shown after notice and
hearing, the court may require that a mortgagee in possession give bond to other parties to
account for what shall come into the mortgagee’s possession by virtue of taking possession of
the mortgaged real estate and for the acts of such mortgagee. The bond shall be in such
reasonable amount, form and with such surety as may be required by the court.
(b) Receiver. When a receiver is appointed, bond may be required in accordance with Section
2-415 of the Code of Civil Procedure.
(c) Corporations. Notwithstanding the provisions of subsections (a) and (b) of Section 151705, a corporation qualified to administer trusts in this State that is acting as a mortgagee in
possession or receiver shall not be required to give bond other than appeal bonds.
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(Source: P.A. 84-1462.)
(735 ILCS 5/15-1706) (from Ch. 110, par. 15-1706)
Sec. 15-1706. Possession.
(a) Request. A request that the mortgagee be placed in possession or that a receiver be
appointed may be made by motion, whether or not such request is included in the complaint or
other pleading. Any such request shall be supported by affidavit or other sworn pleading.
(b) Meaning of Request. A request in a motion or in the complaint or other pleading that the
mortgagee be placed in possession or that a receiver be appointed shall be construed to mean a
mortgagee placed in possession or a receiver appointed in accordance with, and with powers and
duties specified by, Part 17 of this Article.
(c) Hearing. After reasonable notice has been given to all other parties, the court shall
promptly hold a hearing and promptly rule on a request that a mortgagee be placed in possession
or that a receiver be appointed, except that, if no objection to the request is made prior to the
time specified for the hearing, the court shall rule without a hearing.
(d) Reasonable Notice. For the purposes of subsection (c) of Section 15-1706, notice shall be
reasonable if given as much in advance of the hearing as notice of motions generally is required
to be given under applicable court rules, and if served in the same manner as motions generally
are served; except, if the mortgagor has not been served with the complaint, the mortgagor must
be served in the same manner as required for service of process. Notwithstanding anything in the
foregoing sentence to the contrary, except with respect to the mortgagor of residential real estate
which has not been abandoned, the court may rule without service on a party, if the party is in
default or if the party making the request shows good cause by affidavit or other sworn evidence.
If the mortgagor is not served prior to the hearing, he shall be given notice of the hearing to the
same extent as applicable court rules may provide for post-hearing notice of emergency and ex
parte motions.
(Source: P.A. 84-1462.)
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