Bill Text: IL HB3058 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Creates the Abandoned Residential Property Act. Imposes requirements on first lien mortgage holders concerning the inspecting, securing, and maintaining of abandoned residential property. Provides exceptions. Provides that the Department of Financial and Professional Regulation shall maintain a statewide abandoned property registry electronic database. Provides that the Department shall establish and maintain a toll-free hotline that neighbors of residential property that is, or appears to be, abandoned may use to report hazards, blights, or other concerns related to the property. Provides that violations of the provisions may be heard before a hearing officer or a court of competent jurisdiction and that the violations may be enforced by the Secretary of the Department or the municipality where the residential property is located. Provides that if the mortgagee violates the provisions, a civil penalty may be issued in the amount of up to $500 per day per property for each day the violation persisted. Provides rulemaking powers to the Division of Banking of the Department to implement the provisions. Limits home rule powers. Makes conforming changes.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB3058 Detail]
Download: Illinois-2019-HB3058-Introduced.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||||||
5 | Abandoned Residential Property Act.
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6 | Section 5. Definitions. As used in this Act: | ||||||||||||||||||||||||||||
7 | "Abandoned residential property" means property that: | ||||||||||||||||||||||||||||
8 | (1) has any of the following occur: overgrown or dead | ||||||||||||||||||||||||||||
9 | vegetation; accumulation of newspapers, circulars, flyers, | ||||||||||||||||||||||||||||
10 | or mail; past due utility notices, disconnected utilities, | ||||||||||||||||||||||||||||
11 | or utilities not in use; accumulation of trash, refuse, or | ||||||||||||||||||||||||||||
12 | other debris; absence of window coverings; one or more | ||||||||||||||||||||||||||||
13 | boarded, missing, or broken windows; the property is open | ||||||||||||||||||||||||||||
14 | to casual entry or trespass; or the property has a building | ||||||||||||||||||||||||||||
15 | or structure that is or appears structurally unsound or has | ||||||||||||||||||||||||||||
16 | any other condition that presents a potential hazard or | ||||||||||||||||||||||||||||
17 | danger to the safety of persons; | ||||||||||||||||||||||||||||
18 | (2) a court or other appropriate State or local | ||||||||||||||||||||||||||||
19 | governmental entity has formally determined, following due | ||||||||||||||||||||||||||||
20 | notice to the borrower at the property address and any | ||||||||||||||||||||||||||||
21 | other known addresses, that such property is vacant and | ||||||||||||||||||||||||||||
22 | abandoned; or | ||||||||||||||||||||||||||||
23 | (3) each borrower and owner has separately issued a |
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1 | sworn written statement, expressing his or her intent to | ||||||
2 | vacate and abandon the property and an inspection of the | ||||||
3 | property shows no evidence of occupancy to indicate that | ||||||
4 | any person is residing there. | ||||||
5 | "Department" means the Department of Financial and | ||||||
6 | Professional Regulation. | ||||||
7 | "Division of Banking" means the Division of Banking of the | ||||||
8 | Department of Financial and Professional Regulation. | ||||||
9 | "Secretary" means the Secretary of the Department of | ||||||
10 | Financial and Professional Regulation.
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11 | Section 10. Application. Notwithstanding any other | ||||||
12 | provision of law to the contrary, any duties and | ||||||
13 | responsibilities prescribed by this Act apply only to the first | ||||||
14 | lien mortgage holder. | ||||||
15 | This Act does not apply to State or federally chartered | ||||||
16 | banks, savings banks, savings and loan associations, or credit | ||||||
17 | unions that: | ||||||
18 | (1) originate, own, service, and maintain their | ||||||
19 | mortgages or a portion thereof; and | ||||||
20 | (2) have less than three-tenths of 1% of the total | ||||||
21 | loans in the State that they either originate, own, | ||||||
22 | service, or maintain for the calendar year ending December | ||||||
23 | 31 of the calendar year ending 2 years prior to the current | ||||||
24 | calendar year. | ||||||
25 | For any State or federally chartered banks, savings banks, |
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1 | savings and loan associations, or credit unions that originate, | ||||||
2 | own, service, and maintain between three-tenths of 1% and | ||||||
3 | five-tenths of 1% of the total loans in the State that they | ||||||
4 | either originate, own, service, or maintain for the calendar | ||||||
5 | year ending December 31 of the calendar year ending 2 years | ||||||
6 | prior to the current calendar year, the application of this Act | ||||||
7 | shall be prospective only.
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8 | Section 15. Inspecting, securing, and maintaining | ||||||
9 | abandoned residential property. | ||||||
10 | (a) Subject to bankruptcy filings, cease and desist orders, | ||||||
11 | threats of violence, or active loss mitigation efforts, within | ||||||
12 | 90 days of a borrower's delinquency, the lender, assignee, or | ||||||
13 | mortgage loan servicer authorized to accept payment of the loan | ||||||
14 | shall complete an exterior inspection of the subject property | ||||||
15 | to determine occupancy. Thereafter, throughout the delinquency | ||||||
16 | of the loan, the lender, assignee, or mortgage loan servicer | ||||||
17 | shall conduct an exterior inspection of the property every 25 | ||||||
18 | to 35 days, at different times of the day. | ||||||
19 | (b) If a borrower is delinquent and subject to property | ||||||
20 | inspections pursuant to subsection (a), the lender, assignee, | ||||||
21 | or mortgage loan servicer shall secure and maintain the | ||||||
22 | residential property pursuant to subsections (c), (d), (e), | ||||||
23 | (f), and (g) if the lender, assignee, or mortgage loan servicer | ||||||
24 | has a reasonable basis to believe that the residential property | ||||||
25 | is abandoned and the lender, assignee, or mortgage loan |
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1 | servicer is not otherwise restricted from accessing the | ||||||
2 | property. | ||||||
3 | (c) Within 7 business days of determining that the property | ||||||
4 | is abandoned based on the criteria set forth in subsection (b), | ||||||
5 | the lender, assignee, or mortgage loan servicer shall post a | ||||||
6 | notice on an easily accessible part of the property that is | ||||||
7 | reasonably visible to the borrower, property owner, or | ||||||
8 | occupant, and monitor the property (1) for any change in | ||||||
9 | occupancy or contact with the borrower, property owner, or | ||||||
10 | occupant, and (2) to ensure that the notice remains posted so | ||||||
11 | long as the duty to maintain applies. The posted notice shall | ||||||
12 | provide the lender's, assignee's, or mortgage loan servicer's | ||||||
13 | toll-free number or similar contact information. | ||||||
14 | (d) If the posted notice is not responded to or persists | ||||||
15 | for 7 consecutive calendar days without contact with the | ||||||
16 | borrower, property owner, or occupant indicating that the | ||||||
17 | property is not abandoned, or if an emergent property condition | ||||||
18 | that could reasonably damage, destroy, or harm the property | ||||||
19 | arises, the lender, assignee, or mortgage loan servicer shall: | ||||||
20 | (1) if the property contains 2 or more points of | ||||||
21 | ingress or egress, replace no more than one door lock to | ||||||
22 | provide subsequent access to the property; | ||||||
23 | (2) secure, replace, or board up broken doors and | ||||||
24 | windows; | ||||||
25 | (3) secure any part of the property that may be deemed | ||||||
26 | an attractive nuisance, including, but not limited to, a |
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1 | water feature that could create a drowning risk, | ||||||
2 | refrigerator or freezer units, outbuildings, wells, or | ||||||
3 | septic tanks; | ||||||
4 | (4) respond to government inquiries regarding the | ||||||
5 | condition of the property, subject to restrictions | ||||||
6 | regarding financial privacy; and | ||||||
7 | (5) ensure that the notice required to be posted under | ||||||
8 | subsection (c) remains posted on an easily accessible part | ||||||
9 | of the property that is reasonably visible to the borrower, | ||||||
10 | property owner, or occupant so long as the duty to maintain | ||||||
11 | applies. | ||||||
12 | (e) At no time shall a lender, assignee, or mortgage loan | ||||||
13 | servicer remove personal property from the property unless: | ||||||
14 | (1) the personal property poses a significant health | ||||||
15 | and safety issue; or | ||||||
16 | (2) there is an uncontested order to do so by a | ||||||
17 | governmental entity. | ||||||
18 | (f) A lender, assignee, or mortgage loan servicer who has | ||||||
19 | determined a property to be abandoned and who has secured the | ||||||
20 | same shall take reasonable and necessary actions to maintain | ||||||
21 | the property until the earliest of the following events: | ||||||
22 | (1) an occupant of the property has asserted his or her | ||||||
23 | right to occupy the property, or the lender, assignee, or | ||||||
24 | mortgage loan servicer or its agents have received threats | ||||||
25 | of violence; | ||||||
26 | (2) the borrower has filed for bankruptcy; |
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1 | (3) a court has ordered the lender, assignee, or | ||||||
2 | mortgage loan servicer to stop any maintenance of the | ||||||
3 | property; | ||||||
4 | (4) a homeowners' association has prevented the | ||||||
5 | lender, assignee, or mortgage loan servicer from gaining | ||||||
6 | access to or maintaining the property; | ||||||
7 | (5) the property has been sold or transferred to a new | ||||||
8 | owner; | ||||||
9 | (6) the lender, assignee, or mortgage loan servicer or | ||||||
10 | investor subject to this Act has released the lien on the | ||||||
11 | property; or | ||||||
12 | (7) the mortgage note has been assigned, transferred, | ||||||
13 | or sold to another lender, assignee, or mortgage loan | ||||||
14 | servicer. | ||||||
15 | (g) Reasonable and necessary actions to maintain the | ||||||
16 | property include, but are not limited to: | ||||||
17 | (1) ensuring that the property remains secure pursuant | ||||||
18 | to subsections (d), (e), and (f); and | ||||||
19 | (2) maintaining property in a manner consistent with | ||||||
20 | the standards set forth in Section 15-1200.5 to the extent | ||||||
21 | that the lender, assignee, or mortgage loan servicer is | ||||||
22 | able to obtain necessary or required permits or approvals.
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23 | Section 20. Zip code database; toll-free number. | ||||||
24 | (a) The Department shall maintain a statewide abandoned | ||||||
25 | residential property registry electronic database. The |
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1 | Department may retain a private contractor to administer the | ||||||
2 | database for the purposes of satisfying this requirement. | ||||||
3 | The Department, upon written request, shall provide a | ||||||
4 | public official of any State district, county, city, town, or | ||||||
5 | village with access to information specific to the public | ||||||
6 | official's district, county, city, town, or village maintained | ||||||
7 | on the database. The Department shall make the database open to | ||||||
8 | the public and available on the Department's website. | ||||||
9 | (b) A lender, assignee, or mortgage loan servicer shall | ||||||
10 | submit to the Department by December 31, 2020 information | ||||||
11 | required by the Secretary about any abandoned residential real | ||||||
12 | property that is located in a zip code where there are | ||||||
13 | prevalent abandoned residential properties. | ||||||
14 | The information shall, at a minimum, include: (1) the | ||||||
15 | current name, address, and contact information for the lender, | ||||||
16 | assignee, or mortgage loan servicer responsible for | ||||||
17 | maintaining the vacant property; (2) whether a foreclosure | ||||||
18 | action has been filed for the property in question, and, if so, | ||||||
19 | the date on which the foreclosure action was commenced; and (3) | ||||||
20 | the last known address and contact information for the | ||||||
21 | mortgagor of record. | ||||||
22 | If any of the information contained in a lender's, | ||||||
23 | assignee's, or mortgage loan servicer's initial submission to | ||||||
24 | the registry has materially changed since submission, the | ||||||
25 | lender, assignee, or mortgage loan servicer shall make an | ||||||
26 | amended submission to the registry not later than 30 days after |
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1 | the lender, assignee, or mortgage loan servicer learns, or | ||||||
2 | reasonably should have learned, of the new or changed | ||||||
3 | information. | ||||||
4 | (c) The Department shall establish and maintain a toll-free | ||||||
5 | hotline that a neighbor of residential property that is, or | ||||||
6 | appears to be, abandoned residential property may use to report | ||||||
7 | to the Department any hazards, blights, or other concerns | ||||||
8 | related to the property. The Department shall include on its | ||||||
9 | official public website information about the toll-free | ||||||
10 | hotline.
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11 | Section 25. Violations; enforcement. | ||||||
12 | (a) An allegation of a violation of this Act may be heard | ||||||
13 | before a hearing officer or a court of competent jurisdiction. | ||||||
14 | If the mortgagee or agent of the mortgagee has violated this | ||||||
15 | Act, a civil penalty may be imposed by the hearing officer or | ||||||
16 | the court in the amount of up to $500 per day per property for | ||||||
17 | each day the violation persisted. | ||||||
18 | The Secretary, or his or her designee, may, as appropriate | ||||||
19 | and in his or her discretion, pursue any suspected violation of | ||||||
20 | this Act. Before taking such action, the Secretary, or his or | ||||||
21 | her designee, shall give the lender, assignee, or mortgage loan | ||||||
22 | servicer at least 7 days' notice of the violation. | ||||||
23 | The municipality in which the residential property is | ||||||
24 | located may file an action to enforce the obligations described | ||||||
25 | in this Act in any court of competent jurisdiction after at |
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1 | least 7 days' notice to the lender, assignee, or mortgage loan | ||||||
2 | servicer, unless the property requires emergency repairs to | ||||||
3 | address a threat to public health, safety, or welfare, in which | ||||||
4 | case the municipality may enter and maintain the property to | ||||||
5 | cure the emergency; however, notice shall be provided to the | ||||||
6 | lender, assignee, or mortgage loan servicer as soon as | ||||||
7 | practicable. Any municipality acting pursuant to this | ||||||
8 | subsection may bring an action in any court of competent | ||||||
9 | jurisdiction against the lender, assignee, or mortgage loan | ||||||
10 | servicer to recover costs incurred as a result of maintaining | ||||||
11 | the property. The municipality shall provide the Division of | ||||||
12 | Banking with written notice at least 10 days prior to bringing | ||||||
13 | an action pursuant to this subsection; however, failure to | ||||||
14 | comply with this notice requirement shall not be a defense to | ||||||
15 | an allegation in a proceeding brought pursuant to this | ||||||
16 | subsection. The authority provided by this subsection is in | ||||||
17 | addition to, and is not deemed to diminish or reduce, any | ||||||
18 | rights of the parties described in this Act under existing law | ||||||
19 | against the mortgagor of the property for failure to maintain | ||||||
20 | the property. Any civil penalty imposed pursuant to this | ||||||
21 | subsection in an action brought by a municipality shall be | ||||||
22 | retained by the municipality. | ||||||
23 | (b) A lender, assignee, or mortgage loan servicer who | ||||||
24 | peacefully enters an abandoned property in order to maintain it | ||||||
25 | pursuant to this Act shall be immune from liability if the | ||||||
26 | lender, assignee, or mortgage loan servicer is making |
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1 | reasonable efforts to comply with this Act. | ||||||
2 | (c) This Act is subject to federal laws, court orders, and | ||||||
3 | investor and insurer guidelines. | ||||||
4 | (d) For all State or federally chartered banks, savings | ||||||
5 | banks, savings and loan associations, credit unions, or | ||||||
6 | servicers for which the provisions of this Act do not apply, | ||||||
7 | any agreement between a State or federally chartered bank, | ||||||
8 | savings bank, savings and loan association, credit union, or | ||||||
9 | servicer and the Division of Banking that is associated with | ||||||
10 | the maintenance and repair of abandoned property shall remain | ||||||
11 | in full force and effect for so long as the terms and | ||||||
12 | conditions of the agreement remain in effect. | ||||||
13 | (e) The Division of Banking shall adopt any rules necessary | ||||||
14 | to implement the terms of this Act, including, but not limited | ||||||
15 | to, rules pertaining to the reporting of financial information | ||||||
16 | that State or federally chartered banks, savings banks, savings | ||||||
17 | and loan associations, or credit unions must provide to | ||||||
18 | implement this Act.
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19 | Section 30. Home rule limitations. A home rule unit shall | ||||||
20 | not impose a duty to maintain abandoned property in a manner | ||||||
21 | inconsistent with the provisions of this Act that are related | ||||||
22 | to maintenance as provided under subsections (c), (d), (e), | ||||||
23 | (f), and (g) of Section 15, or establish related penalties or | ||||||
24 | other monetary obligations, with respect to a State or | ||||||
25 | federally chartered bank, savings bank, savings and loan |
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1 | association, or credit union that originates, owns, services or | ||||||
2 | maintains a mortgage related to the property. A home rule unit | ||||||
3 | shall not impose a duty to maintain abandoned property upon any | ||||||
4 | State or federally chartered bank, savings bank, savings and | ||||||
5 | loan association, or credit union that is not subject to this | ||||||
6 | Act. This subsection is a limitation under subsection (i) of | ||||||
7 | Article VII of the Illinois Constitution on the concurrent | ||||||
8 | exercise by home rule units of powers and functions exercised | ||||||
9 | by the State.
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10 | Section 35. The Code of Civil Procedure is amended by | ||||||
11 | changing Sections 15-1701 and 15-1702 as follows:
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12 | (735 ILCS 5/15-1701) (from Ch. 110, par. 15-1701)
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13 | Sec. 15-1701. Right to possession.
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14 | (a) General. The provisions of
this Article shall govern | ||||||
15 | the right to possession of the mortgaged real
estate during | ||||||
16 | foreclosure. Possession under this Article includes physical
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17 | possession of the mortgaged real estate to the same extent to | ||||||
18 | which the
mortgagor, absent the foreclosure, would have been | ||||||
19 | entitled to physical
possession. For the purposes of Part 17, | ||||||
20 | real estate is residential real estate
only if it is | ||||||
21 | residential real estate at the time the foreclosure is | ||||||
22 | commenced.
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23 | (b) Pre-Judgment. Prior to the entry of a judgment of | ||||||
24 | foreclosure:
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1 | (1) In the case of residential real estate, the | ||||||
2 | mortgagor shall be
entitled to possession of the real | ||||||
3 | estate except if (i) the mortgagee shall
object and show | ||||||
4 | good cause, (ii) the mortgagee is so authorized by the | ||||||
5 | terms of
the mortgage or other written instrument, and | ||||||
6 | (iii) the court is satisfied that
there is a reasonable | ||||||
7 | probability that the mortgagee will prevail on a final
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8 | hearing of the cause, the court shall upon request place | ||||||
9 | the mortgagee in
possession. If the residential real estate | ||||||
10 | consists of more than one dwelling
unit, then for the | ||||||
11 | purpose of this Part residential real estate shall mean | ||||||
12 | only
that dwelling unit or units occupied by persons | ||||||
13 | described in clauses (i), (ii)
and (iii) of Section | ||||||
14 | 15-1219.
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15 | (1.5) The mortgagor may take possession of the real | ||||||
16 | estate for the purposes of compliance with the Abandoned | ||||||
17 | Residential Property Act. | ||||||
18 | (2) In all other cases, if (i) the mortgagee is so | ||||||
19 | authorized by the
terms of the mortgage or other written | ||||||
20 | instrument, and (ii) the court is
satisfied that there is a | ||||||
21 | reasonable probability that the mortgagee will
prevail on a | ||||||
22 | final hearing of the cause, the mortgagee shall
upon | ||||||
23 | request be placed in possession of the real estate, except | ||||||
24 | that if the
mortgagor shall object and show good cause, the | ||||||
25 | court shall allow the
mortgagor to remain in possession.
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26 | (c) Judgment Through 30 Days After Sale Confirmation. After |
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1 | the entry
of a judgment of foreclosure and through the 30th day | ||||||
2 | after a foreclosure
sale is confirmed:
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3 | (1) Subsection (b) of Section 15-1701 shall be | ||||||
4 | applicable, regardless of
the provisions of the mortgage or | ||||||
5 | other instrument, except that after a
sale pursuant to the | ||||||
6 | judgment the holder of the certificate of sale
(or, if | ||||||
7 | none, the purchaser at the sale) shall have the mortgagee's | ||||||
8 | right to be
placed in possession, with all rights and | ||||||
9 | duties of a mortgagee in possession
under this Article.
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10 | (2) Notwithstanding paragraph (1) of subsection (b) | ||||||
11 | and paragraph (1) of
subsection (c) of Section 15-1701, | ||||||
12 | upon request of the mortgagee, a mortgagor
of residential | ||||||
13 | real estate shall not be allowed to remain in possession | ||||||
14 | between
the expiration of the redemption period and through | ||||||
15 | the 30th day after sale
confirmation unless (i) the | ||||||
16 | mortgagor pays to the mortgagee or such holder or
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17 | purchaser, whichever is applicable, monthly the lesser of | ||||||
18 | the interest due
under the mortgage calculated at the | ||||||
19 | mortgage rate of interest applicable as if
no default had | ||||||
20 | occurred or the fair rental value of the real estate, or | ||||||
21 | (ii)
the mortgagor otherwise shows good cause. Any amounts | ||||||
22 | paid by the mortgagor
pursuant to this subsection shall be | ||||||
23 | credited against the amounts due from the
mortgagor.
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24 | (d) After 30 Days After Sale Confirmation. The holder of
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25 | the certificate of sale or deed issued pursuant to that | ||||||
26 | certificate or, if
no certificate or deed was issued, the |
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1 | purchaser, except to the extent the
holder or purchaser may | ||||||
2 | consent otherwise, shall be entitled to possession of
the | ||||||
3 | mortgaged real estate, as of the date 30 days after the order | ||||||
4 | confirming
the sale is entered, against those parties to the | ||||||
5 | foreclosure whose interests
the court has ordered terminated, | ||||||
6 | without further notice to any party, further
order of the | ||||||
7 | court, or resort to proceedings under any other statute other | ||||||
8 | than
this Article.
This right to possession shall be limited by | ||||||
9 | the provisions
governing entering and enforcing orders of | ||||||
10 | possession under subsection (g) of
Section
15-1508.
If the | ||||||
11 | holder or purchaser determines that there are occupants
of the | ||||||
12 | mortgaged real estate who have not been made parties to the | ||||||
13 | foreclosure
and had their interests terminated therein, the | ||||||
14 | holder or purchaser may bring an eviction
proceeding under | ||||||
15 | subsection (h) of this Section, if applicable, or under Article | ||||||
16 | IX of this Code
to terminate the rights of possession of any | ||||||
17 | such occupants. The holder or
purchaser shall not be entitled | ||||||
18 | to proceed against any such occupant under
Article IX of this | ||||||
19 | Code until after 30 days after the order confirming the sale
is | ||||||
20 | entered.
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21 | (e) Termination of Leases. A lease of all or any part of | ||||||
22 | the mortgaged
real estate shall not be terminated automatically | ||||||
23 | solely by virtue of the entry
into possession by (i) a | ||||||
24 | mortgagee or receiver prior to the entry of an order
confirming | ||||||
25 | the sale, (ii) the holder of the certificate of sale, (iii) the
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26 | holder of the deed issued pursuant to that certificate, or (iv) |
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1 | if no
certificate or deed was issued, the purchaser at the | ||||||
2 | sale.
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3 | (f) Other Statutes; Instruments. The provisions of this | ||||||
4 | Article
providing for possession of mortgaged real estate shall | ||||||
5 | supersede any other
inconsistent statutory provisions. In | ||||||
6 | particular, and without limitation,
whenever a receiver is | ||||||
7 | sought to be appointed in any action in which a
foreclosure is | ||||||
8 | also pending, a receiver shall be appointed only in
accordance | ||||||
9 | with this Article. Except as may be authorized by this Article,
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10 | no mortgage or other instrument may modify or supersede the | ||||||
11 | provisions of this
Article.
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12 | (g) Certain Leases. Leases of the mortgaged real estate | ||||||
13 | entered into by
a mortgagee in possession or a receiver and | ||||||
14 | approved by the court in a
foreclosure shall be binding on all | ||||||
15 | parties, including the mortgagor after
redemption, the | ||||||
16 | purchaser at a sale pursuant to a judgment of foreclosure
and | ||||||
17 | any person acquiring an interest in the mortgaged real estate | ||||||
18 | after
entry of a judgment of foreclosure in accordance with | ||||||
19 | Sections 15-1402 and
15-1403.
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20 | (h) Proceedings Against Certain Occupants.
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21 | (1) The mortgagee-in-possession of the mortgaged real | ||||||
22 | estate under Section
15-1703, a receiver appointed under | ||||||
23 | Section 15-1704, a holder of the
certificate of sale or | ||||||
24 | deed, or the purchaser may, at any time during the
pendency | ||||||
25 | of the foreclosure and up to 90 days after the date of the | ||||||
26 | order
confirming the sale,
file a supplemental eviction |
| |||||||
| |||||||
1 | petition against a person not personally
named as a party
| ||||||
2 | to the foreclosure. This subsection (h) does not apply to | ||||||
3 | any lessee with a bona fide lease of a dwelling unit in | ||||||
4 | residential real estate in foreclosure. | ||||||
5 | (2) The supplemental eviction petition shall name each | ||||||
6 | such
occupant against whom an eviction order is sought and | ||||||
7 | state the facts upon which the
claim for relief is | ||||||
8 | premised.
| ||||||
9 | (3) The petitioner shall serve upon each named occupant | ||||||
10 | the petition,
a notice of hearing on the petition, and, if | ||||||
11 | any, a copy of the certificate of
sale or deed. The | ||||||
12 | eviction proceeding, including service of the notice of the | ||||||
13 | hearing and the petition,
shall in all respects comport | ||||||
14 | with the requirements of Article IX of this Code,
except as | ||||||
15 | otherwise specified in this Section. The hearing shall be | ||||||
16 | no less
than 21 days from the date of service of the | ||||||
17 | notice.
| ||||||
18 | (4) The supplemental petition shall be heard as part of | ||||||
19 | the foreclosure
proceeding and without the payment of | ||||||
20 | additional filing fees. An eviction order obtained under | ||||||
21 | this Section shall name each occupant whose interest
has | ||||||
22 | been terminated, shall recite that it is only effective as | ||||||
23 | to the occupant
so named and those holding under them, and | ||||||
24 | shall be enforceable for no more
than 120 days after its | ||||||
25 | entry, except that the 120-day period may be extended to
| ||||||
26 | the extent and in the manner provided in Section 9-117 of |
| |||||||
| |||||||
1 | Article IX and except as provided in item (5) of this | ||||||
2 | subsection (h). | ||||||
3 | (5) In a case of foreclosure where the occupant is | ||||||
4 | current on his or her rent, or where timely written notice | ||||||
5 | of to whom and where the rent is to be paid has not been | ||||||
6 | provided to the occupant, or where the occupant has made | ||||||
7 | good-faith efforts to make rental payments in order to keep | ||||||
8 | current, any eviction order must allow the occupant to | ||||||
9 | retain possession of the property covered in his or her | ||||||
10 | rental agreement (i) for 120 days following the notice of | ||||||
11 | the hearing on the supplemental petition that has been | ||||||
12 | properly served upon the occupant, or (ii) through the | ||||||
13 | duration of his or her lease, whichever is shorter, | ||||||
14 | provided that if the duration of his or her lease is less | ||||||
15 | than 30 days from the date of the order, the order shall | ||||||
16 | allow the occupant to retain possession for 30 days from | ||||||
17 | the date of the order. A mortgagee in possession, receiver, | ||||||
18 | holder of a certificate of sale or deed, or purchaser at | ||||||
19 | the judicial sale, who asserts that the occupant is not | ||||||
20 | current in rent, shall file an affidavit to that effect in | ||||||
21 | the supplemental petition proceeding. If the occupant has | ||||||
22 | been given timely written notice of to whom and where the | ||||||
23 | rent is to be paid, this item (5) shall only apply if the | ||||||
24 | occupant continues to pay his or her rent in full during | ||||||
25 | the 120-day period or has made good-faith efforts to pay | ||||||
26 | the rent in full during that period.
|
| |||||||
| |||||||
1 | (6) The court records relating to a supplemental | ||||||
2 | eviction petition filed under this subsection (h) against | ||||||
3 | an occupant who is entitled to notice under item (5) of | ||||||
4 | this subsection (h), or relating to an eviction action | ||||||
5 | brought against an occupant who would have lawful | ||||||
6 | possession of the premises but for the foreclosure of a | ||||||
7 | mortgage on the property, shall be ordered sealed and shall | ||||||
8 | not be disclosed to any person, other than a law | ||||||
9 | enforcement officer or any other representative of a | ||||||
10 | governmental entity, except upon further order of the | ||||||
11 | court.
| ||||||
12 | (i) Termination of bona fide leases. The holder of the | ||||||
13 | certificate of sale, the holder of the deed issued pursuant to | ||||||
14 | that certificate, or, if no certificate or deed was issued, the | ||||||
15 | purchaser at the sale shall not terminate a bona fide lease of | ||||||
16 | a dwelling unit in residential real estate in foreclosure | ||||||
17 | except pursuant to Article IX of this Code. | ||||||
18 | (Source: P.A. 100-173, eff. 1-1-18 .)
| ||||||
19 | (735 ILCS 5/15-1702) (from Ch. 110, par. 15-1702)
| ||||||
20 | Sec. 15-1702. Specific Rules of Possession. (a) | ||||||
21 | Mortgagee's Rights. Except as necessary to comply with the | ||||||
22 | Abandoned Residential Property Act, no No
mortgagee shall be | ||||||
23 | required to take possession of the mortgaged real
estate, | ||||||
24 | whether upon application made by any other party or otherwise.
| ||||||
25 | Whenever a mortgagee entitled to possession so requests, the |
| |||||||
| |||||||
1 | court shall
appoint a receiver. The failure of a mortgagee to | ||||||
2 | request possession or
appointment of a receiver shall not | ||||||
3 | preclude a mortgagee otherwise entitled
to possession from | ||||||
4 | making such a request at any future time.
The appointment of a | ||||||
5 | receiver shall not preclude a mortgagee from thereafter
seeking | ||||||
6 | to exercise such mortgagee's right to be placed in possession.
| ||||||
7 | (b) Designation of Receivers. Whenever a receiver is to be | ||||||
8 | appointed,
the mortgagee shall be entitled to designate the | ||||||
9 | receiver. If the mortgagor or
any other party to the | ||||||
10 | foreclosure objects to any such designation
or designations and | ||||||
11 | shows good cause, or the court disapproves the
designee, the | ||||||
12 | mortgagee in such instance shall
be entitled to make another | ||||||
13 | designation.
| ||||||
14 | (c) Rights of Mortgagee Having Priority. If a mortgagee | ||||||
15 | having priority
objects to the proposed possession by a | ||||||
16 | subordinate mortgagee or by a receiver
designated by the | ||||||
17 | subordinate mortgagee, upon entry of a finding in accordance
| ||||||
18 | with subsection (d) of Section 15-1702 the court shall instead | ||||||
19 | place that
objecting mortgagee in possession or, if a receiver | ||||||
20 | is to be designated in
accordance with subsection (b) of | ||||||
21 | Section 15-1702, allow the designation of
the receiver to be | ||||||
22 | made by that objecting mortgagee.
| ||||||
23 | (d) Removal of Mortgagee in Possession. A mortgagee placed | ||||||
24 | in possession
shall not be removed from possession, and no | ||||||
25 | receiver or other mortgagee
shall be placed in possession | ||||||
26 | except upon (i) the mortgagee's misconduct,
death, legal |
| |||||||
| |||||||
1 | disability or other inability to act, (ii) appointment of a
| ||||||
2 | receiver in accordance with subsection (a) of Section 15-1704 | ||||||
3 | or (iii) a
showing of good cause by a mortgagee having | ||||||
4 | priority. A receiver shall not
be removed solely on account of | ||||||
5 | being designated by a mortgagee later
determined not to have | ||||||
6 | priority.
| ||||||
7 | (e) Determination of Priority. If the court is required to | ||||||
8 | determine
priority for the purposes of subsection (c) of | ||||||
9 | Section 15-1702, a new
determination shall be made each time a | ||||||
10 | mortgagee is to be placed in
possession or a receiver is to be | ||||||
11 | appointed and shall be an interim
determination which shall not | ||||||
12 | preclude the court from making a contrary
determination later | ||||||
13 | in the foreclosure. If the court subsequently shall
make such a | ||||||
14 | contrary determination, a mortgagee in possession or acting
| ||||||
15 | receiver shall not be removed except in accordance with Part 17 | ||||||
16 | of this Article.
| ||||||
17 | (f) Rights to Crops. With respect to any crops growing or | ||||||
18 | to be grown
on the mortgaged real estate, the rights of a | ||||||
19 | holder of any obligation
secured by a collateral assignment of | ||||||
20 | beneficial interest in a land trust,
the rights of a mortgagee | ||||||
21 | in possession, or the rights of a receiver,
including rights by | ||||||
22 | virtue of an equitable lien, shall be subject to a
security | ||||||
23 | interest properly perfected pursuant to
Article 9 of the | ||||||
24 | Uniform Commercial Code, where the holder of a
collateral | ||||||
25 | assignment, mortgagee in possession, or receiver becomes
| ||||||
26 | entitled to crops by obtaining possession on or after the |
| |||||||
| |||||||
1 | effective date of
this Amendatory Act of 1988.
| ||||||
2 | (Source: P.A. 85-1427.)
|