Illinois Senate Bill 2432

The Illinois legislature recently amended provisions of its laws related to foreclosure, effective August 23, 2018.

A court’s jurisdiction is not affected by a technical error in format of a summons if the summons has been issued by a clerk of the court, the person or entity to be served is identified as a defendant on the summons, and the summons is properly served.

A petition to reopen a foreclosure proceeding must include as parties to the petition, but is not limited to, all parties in the original action in addition to the current record title holders of the property, current occupants, and any individual or entity that had a recorded interest in the property before the filing of the petition.

When a petition is filed to reopen a foreclosure proceeding, the purchaser or successor purchaser of real property subject to a foreclosure sale who was not a party to the mortgage foreclosure proceedings is entitled to remain in possession of the property until the foreclosure action is defeated or the previously foreclosed defendant redeems from the foreclosure sale if the purchaser has been in possession of the property for more than six months.

Actions brought for the recovery of any lands, tenements, or hereditaments of which any person may be possessed for two successive years, having a connected title, deductible of record, as a purchaser at a judicial foreclosure sale, other than a mortgagee, who takes possession pursuant to a court order under the Illinois Mortgage Foreclosure Law, or a purchaser who acquires title from a mortgagee or a purchaser at a judicial foreclosure sale who received title and took possession pursuant to a court order, must be brought within two years after possession is taken.  When the purchaser acquires title and has taken possession, the limitation begins to run from the date a mortgagee or a purchaser at a judicial foreclosure sale takes possession pursuant to a court order under the Illinois Mortgage Foreclosure Law or Illinois eviction laws.  The vacation or modification of an order or judgment entered in the judicial foreclosure does not affect the limitation in this provision.  This provision applies to actions filed on or after February 19, 2019.

Every person in actual possession of property who holds title as a purchaser at a judicial foreclosure sale, other than a mortgagee, who takes possession pursuant to a court under the Illinois Mortgage Foreclosure Law, or a purchaser who acquires title from a mortgagee or a purchaser at a judicial foreclosure sale who received title and took possession pursuant to such a court order, and who for two successive years continues in possession, and also, during such time, pays all taxes legally assessed on the property, will be considered the legal owner of the property, to the extent indicated on the title.  All persons holding under such possession, by purchase, legacy, or descent, before such two years have expired, and who continue possession, and continue to pay the taxes as provided, are entitled to the benefit of these provisions.  The vacation or modification of an order or judgment entered in the judicial foreclosure does not affect the limitations provided.  This provision also applies to actions filed on or after February 19, 2019.

It is a violation for a distressed property consultant to, among other things, enter into, enforce, or act upon any agreement with a foreclosure defendant, whether the foreclosure is completed or otherwise, if the agreement provides for a division of proceeds between the foreclosure defendant and the distressed property consultant derived from litigation related to the foreclosure.