Bill Text: IL SB2730 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Defines "omitted subordinate interest". Provides that certain persons holding real estate encumbered by an omitted subordinate interest may file a strict foreclosure complaint consisting substantially of certain specified information. Provides that subject to the objection of the defendant, the court shall enter a judgment extinguishing the omitted subordinate interest by vesting absolute title to the mortgaged real estate in the plaintiff. Provides procedures by which a holder of an omitted subordinate interest may redeem the interest. Provides that a person whose omitted subordinate interest was not terminated by a prior foreclosure action does not have a right to file a strict foreclosure action. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1099 [SB2730 Detail]

Download: Illinois-2013-SB2730-Chaptered.html

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Public Act 098-1099
SB2730 Enrolled LRB098 17569 HEP 52678 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Code of Civil Procedure is amended by adding
Section 15-1603.5 as follows:
(735 ILCS 5/15-1603.5 new)
Sec. 15-1603.5. Strict foreclosure of an omitted
subordinate interest.
(a) As used in this Section, "omitted subordinate interest"
means a recorded subordinate interest in real estate where:
(1) the real estate is the subject of a foreclosure
action under this Article;
(2) a motion to confirm judicial sale under subsection
(b) of Section 15-1508 is either pending or has been
granted;
(3) the interest attached to the real estate prior to
the filing or recording of any notice in accordance with
Sections 2-1901 and 15-1503; and
(4) the person who has the interest was not named in
the foreclosure complaint.
(b) The holder of the certificate of sale or any person who
acquired title pursuant to Section 15-1509 or any subsequent
successor, assignee, transferee, or grantee who discovers an

omitted subordinate interest may file a strict foreclosure
complaint naming the person who has the omitted subordinate
interest as the defendant. A complaint filed under this Section
must include substantially the following:
(1) the identity of the plaintiff and how the plaintiff
acquired its interest in the property which is the subject
of the strict foreclosure;
(2) the docket number of the prior foreclosure action
and the recording number and date of the mortgage that was
previously foreclosed;
(3) the legal description, common address, and parcel
identification number of the real estate which is the
subject of the strict foreclosure;
(4) the recording number and a copy of the recorded
instrument identifying the person who has the omitted
subordinate interest that is named as the defendant;
(5) the amount of the successful bid at the foreclosure
sale, as stated in the report of sale in the prior
foreclosure action, with a copy of the report of sale
attached to the complaint;
(6) an allegation that, due to inadvertence or mistake
or such other reason as may be applicable, the person who
has the omitted subordinate interest was not made a party
defendant in the prior foreclosure action and the omitted
subordinate interest was not terminated by the judgment of
foreclosure and when the subject property was sold by

judicial sale; and
(7) a request for relief setting forth the redemption
period as provided in this Section and identifying a
contact by name and telephone number who will accept tender
of the redemption amount.
(c) Subject to the objection of the defendant, the court
shall enter a judgment extinguishing the omitted subordinate
interest.
(d) If the defendant objects to the entry of the judgment,
the court, after a hearing, shall enter an order providing
either:
(1) that the defendant has not agreed to pay the amount
required to redeem, in which event the court shall proceed
to enter the judgment; or
(2) that the defendant has agreed to pay the amount
required to redeem.
(e) The amount required to redeem shall be the sum bid at
the prior foreclosure sale plus any costs and fees incurred
subsequent to the sale for the payment of taxes, preservation
of the property, or any other actions taken by the holder of
the certificate of sale to protect its interest in the
property. The amount required to redeem shall not include any
costs or fees incurred by the plaintiff in the strict
foreclosure case filed under this Section.
The order shall state that upon payment of the redemption
amount within the redemption period, which shall extend 30 days

after the entry of the order, title to the real estate shall
vest in the defendant who redeems pursuant to this Section. If
the defendant subject to the order has not paid the amount
required to redeem within the 30-day redemption period, the
interest of the defendant in the property is terminated.
(f) A person whose omitted subordinate interest was not
terminated by a prior foreclosure action does not have a right
to file a strict foreclosure action.
(g) Notwithstanding that the person's omitted subordinate
interest in the real estate has been terminated pursuant to
this Section, nothing in this Section shall be construed to
extinguish or impair any claim of such person in the surplus
proceeds of a sale held or distributed pursuant to subsection
(d) of Section 15-1512 of this Code after the confirmation of
the sale of the real estate for which such person had an
omitted subordinate interest.
Section 99. Effective date. This Act takes effect upon
becoming law.