| ||||
| Public Act 099-0439 | ||||
| ||||
| ||||
AN ACT concerning local government.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Counties Code is amended by adding Section | ||||
3-5010.7 as follows: | ||||
(55 ILCS 5/3-5010.7 new) | ||||
Sec. 3-5010.7. Foreclosure property pilot program. | ||||
(a) The recorder in a county with a population of more than | ||||
3,000,000 shall establish a pilot program that permits | ||||
documents to be recorded against a property in foreclosure by | ||||
judicial order only. | ||||
(b) Beginning January 1, 2016, upon motion by the plaintiff | ||||
in a foreclosure action, the judge shall issue an order barring | ||||
any nonrecord claimants from recording, without approval of the | ||||
court, an interest on the property that is the subject of the | ||||
foreclosure action. The order shall also prohibit the owner of | ||||
the property from recording any document without judicial | ||||
approval except for court orders related to the foreclosure | ||||
case or court orders related to the property that were entered | ||||
after the effective date of the order prohibiting recordation. | ||||
The term "nonrecord claimant", for purposes of this Act, has | ||||
the meaning ascribed to that term in Section 15-1210 of the | ||||
Code of Civil Procedure. The order shall expire on the date of | ||||
the court order confirming the judicial sale of the property | ||
pursuant to a judgment of foreclosure unless renewed by order | ||
of the judge. | ||
(c) Upon inspecting the order and making a determination | ||
that the order is valid and prevents any nonrecord claimants | ||
from recording an interest on the property without court | ||
approval, the recorder shall record the court's order as a | ||
separate document in the chain of title, after the notice of | ||
foreclosure. It is the responsibility of the plaintiff to | ||
attach any necessary exhibits to fulfill statutory recording | ||
requirements. The recorder may charge the standard and | ||
applicable recording fees at the time the order is presented | ||
for recording. | ||
(d) If a court order has been recorded under this Section, | ||
a nonrecord claimant shall not record a document regarding the | ||
property that is the subject of the foreclosure action without | ||
a certified court order. A nonrecord claimant shall obtain a | ||
certified court order by filing a motion in the office of the | ||
clerk of the court in which the action is pending. The court | ||
shall then issue a dated certified order indicating the type of | ||
document to be recorded, the person or entity authorized to | ||
record, the property index number of the property, and the case | ||
number of the foreclosure. The order must be presented in | ||
person to designated staff in the recorder's office along with | ||
the document to be recorded. The recorder shall not accept | ||
recordings subject to this Section by mail or electronic | ||
submission. A mechanics lien claimant, unit of government, or | ||
any duly appointed persons or entities acting as agents for a | ||
unit of government or judicial body shall not be required to | ||
obtain a certified court order in accordance with this | ||
subsection in order to record a document on the property that | ||
is the subject of a foreclosure action. | ||
(e) The recorder is authorized to inspect the photo | ||
identification of any person attempting to record a document on | ||
a title that is subject to a court order under this Section and | ||
may deny recordation to any person who refuses to provide | ||
proper photo identification. | ||
(f) Once the foreclosure is finalized and a new deed is | ||
issued, an official court order confirming the sale must be | ||
presented for inspection at the time of recordation of the deed | ||
as evidence of the expiration of the order prohibiting | ||
recordation. | ||
(g) This Section does not apply to a mortgagee or its agent | ||
that recorded the lis pendens notice of foreclosure. | ||
(h) If a document is recorded contrary to a court's order | ||
and the recorder determines that the recorder's office is | ||
responsible for the error, the recorder shall notify in writing | ||
the person recording the document, if possible, and if after 30 | ||
days' notice or 30 days after the recording when the recorder | ||
is unable to notify the filer and that person fails to obtain | ||
the certified order required under subsection (d), the recorder | ||
shall then record a new document clearly referencing the | ||
document number of the erroneous recording and indicating that | ||
it has been voided. If feasible, the recorder shall watermark | ||
the erroneous recording as voided using the word "voided". | ||
(i) Except in cases of willful or wanton misconduct, the | ||
recorder, or any agent or employee of the recorder, is immune | ||
from any liability under this Section. | ||
(j) The program implemented under this amendatory Act of | ||
the 99th General Assembly shall be considered a pilot program | ||
from January 1, 2016 to January 1, 2019. The recorder may end | ||
the pilot program earlier than January 1, 2019 by sending a | ||
certified letter to the Chief Judge of the county if the | ||
recorder determines that either workforce challenges or | ||
computer hardware or software limitations have prevented the | ||
effective implementation and operation of the program. The | ||
recorder shall enforce in good faith any frozen title requests | ||
initiated prior to cancelling the pilot program. | ||
(k) This Section is repealed on January 1, 2019.
| ||