Public Act 099-0024
 
SB0735 EnrolledLRB099 07334 HEP 27444 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 
changing Section 15-1501 as follows:
 



    (735 ILCS 5/15-1501)  (from Ch. 110, par. 15-1501)



    Sec. 15-1501. Parties. 

    (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 any such 
    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.


        (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. 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.)