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| Public Act 099-0024 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Code of Civil Procedure is amended by | ||||
changing Section 15-1501 as follows:
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(735 ILCS 5/15-1501) (from Ch. 110, par. 15-1501)
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Sec. 15-1501. Parties.
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(a) Necessary Parties. For the purposes of
Section 2-405 of | ||||
the Code of Civil Procedure, only (i) the mortgagor and (ii)
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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.
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(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:
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(1) All persons having a possessory interest in the | ||||
mortgaged real estate;
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(2) A mortgagor's spouse who has waived the right of | ||
homestead;
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(3) A trustee holding an interest in the mortgaged real | ||
estate or a
beneficiary of such trust;
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(4) The owner or holder of a note secured by a trust | ||
deed;
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(5) Guarantors, provided that in a foreclosure any such | ||
guarantor also
may be joined as a party in a separate count | ||
in an action on such guarantor's guaranty;
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(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
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immunity for the State of Illinois", approved December 10,
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1971, as amended, shall not be effective;
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(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;
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(8) Any assignee of leases or rents relating to the | ||
mortgaged real estate;
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(9) Any person who may have a lien under the Mechanic's | ||
Lien Act; and
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(10) Any other mortgagee or claimant.
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(c) Unknown Owners. Any unknown owner may be made a party | ||
in accordance
with Section 2-413 of the Code of Civil | ||
Procedure.
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(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
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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.
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(e) Time of Intervention.
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(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.
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(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
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become a party on such terms as the court may deem just.
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(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
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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
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subject to all orders and judgments entered in the | ||
foreclosure.
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(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.
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(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
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(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.
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(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.
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(h) Special Representatives. With respect to the property | ||
that is the subject of the action, the 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: | ||
(1) living person, persons, or entity 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; | ||
(2) beneficiary under a transfer on death instrument | ||
executed by the deceased mortgagor prior to death; | ||
(3) person, persons, or entity that was conveyed title | ||
to the property by the deceased mortgagor prior to death; | ||
(4) person, persons, or entity that was conveyed title | ||
to the property from the deceased mortgagor's probate | ||
estate by the administrator or executor; or | ||
(5) trust that was conveyed title to the property by: | ||
(A) the deceased mortgagor prior to death; or | ||
(B) any other person, persons, or entity that is | ||
identified in this subsection (h) as being exempt from | ||
the requirement to appoint a special representative. | ||
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.)
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