Page 15 - John Hundley 2009

Sharp Thinking

No. 23 Perspectives on Developments in the Law from The Sharp Law Firm, P.C. August 2009

Real Estate “Crisis” Prompts More Legislative Action

By Mandy Combs, Mcombs@lotsharp.com, 618-242-0246

The continuing real estate crisis, which has led to numerous
residents losing their homes, has now led to even more legislation
protecting the rights of occupants of housing in Illinois.

Just since we reported on P.A. 95-1047 in May (Illinois Enacts
Mortgage Reform Law, Sharp Thinking # 20), the Illinois legisla-
ture has passed three more bills amending the Illinois Mortgage
Foreclosure Law (735 ILCS 5/15-1101 et seq.) (“IMFL”), and other
legislation impacting evictions under the Forcible Entry & Detainer
Act (735 ILCS 5/9-101 et seq.). Following is a run-down on the
status of the new legislation and its key impacts.

P.A. 96-0265. This act, which became effective August 11, provides that any party
entitled to notice of the foreclosure sale but not notified thereof may, by motion supported by affidavit,
ask the court to set aside the sale. The motion must be filed prior to confirmation of the sale, and
must be supported by a bond equal to the successful bid unless the movant is a mortgagor occupying
residential real estate at the time the motion was filed.

P.A. 96-0110. This act, which became effective July 31, requires that any deed or
consent foreclosure judgment executed under the IMFL shall state the grantee’s or mortgagee’s
name (and the name of a contact person), street and mailing addresses, and telephone number.

P.A. 96-0111. This act, which will become effective October 29, imposes additional
requirements that must be followed when property in foreclosure is occupied. It applies to “dwelling
units”, which is defined as 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. Hence it applies to property which would not
be treated as residential real estate under other parts of IMFL.

Under the act, whenever a holder of a certificate of sale or deed, a purchaser, a mortgagee in
possession, or a receiver (collectively, a “New Owner”) has control of the property and a judicial sale
is confirmed, the New Owner must within 21 days make a good faith effort to ascertain the identities
and addresses of occupants and to notify them it has acquired the property. (If it learns an identity
and address more than 21 days after confirmation, it must provide the notice within 7 days thereafter.)
Specifically, the notice must (1) be in writing; (2) identify the occupant being served by name; (3)
inform the occupant that the unit is the subject of a foreclosure and that control thereof has changed;

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Sharp Thinking is an occasional newsletter of The Sharp Law Firm, P.C. addressing developments in the law which may be of interest. Nothing contained in Sharp
Thinking shall be construed to create an attorney-client relation where none previously has existed, nor with respect to any particular matter. The perspectives herein
constitute educational material on general legal topics and are not legal advice applicable to any particular situation. To establish an attorney-client relation or to obtain legal
advice on your particular situation, contact a Sharp lawyer at the phone number or at one of the addresses provided on page 2 of this newsletter.