CIV PRO-FORECLOSURE-SHORT SALE Senate SponsorsSen. Ira I. Silverstein-Jacqueline Y. Collins House Sponsors(Rep. Barbara Flynn Currie-Carol A. Sente-La Shawn K. Ford-André M. Thapedi-Arthur Turner, Camille Y. Lilly, Al Riley and Kelly M. Cassidy) 1/13/2012SenatePublic Act . . . . . . . . . 97-0666 735 ILCS 5/15-1401.1 newAmends the Code of Civil Procedure. Defines "short sale" as the sale of real estate that is subject to a mortgage for an amount that is less than the amount owed to the mortgagee on the outstanding mortgage loan. Provides that in a foreclosure of residential property, if the mortgagor presents to the mortgagee, which is a banking organization or corporation, a bona fide written offer from a third party to purchase the property in foreclosure which is for an amount that constitutes a short sale, and the mortgagor requests that the mortgagee approve the short sale, then the mortgagee must respond within 30 days and must agree to the short sale unless there is a reasonable justification to not do so. Provides that the fact that the proceeds of the short sale would be insufficient to satisfy the mortgage note does not constitute a reasonable justification. Provides that if the mortgagee approves the short sale, the mortgagee agrees as part of the closing of the short sale: to termination of the mortgagor's interest in the property and acceptance the sale proceeds in full satisfaction of the outstanding mortgage loan; to relieve from personal liability all persons who may owe payment or the performance of other obligations secured by the mortgage, including guarantors; and to waive all rights to a personal judgment for deficiency against the mortgagor and all other persons liable under the mortgage.Senate Committee Amendment No. 1 Further amends the Code of Civil Procedure. Provides that nothing in these provisions shall be construed to extinguish, limit, or otherwise affect any lien created by a condominium association, master association, or common interest community association.Senate Committee Amendment No. 2 Replaces everything after the enacting clause with the provisions of the bill, as amended, except that it changes to 90 days (instead of 30 days) the amount of time within which a mortgagee must respond to the mortgagor's written request to approve a written offer for a short sale and deletes all other provisions of the bill as amended. Effective immediately.Senate Floor Amendment No. 4 Replaces everything after the enacting clause with the provisions of the bill, as amended, except that it adds provisions that: allow the mortgagee to determine whether to accept the short sale offer; state that the failure to accept the offer does not impair or abrogate the mortgagee's rights or affect the foreclosure proceedings; and the 90-day period within which to respond to the short sale offer does not stay the foreclosure proceedings. Effective immediately. 2/8/2011SenateFiled with Secretary by Sen. Ira I. Silverstein 2/8/2011SenateFirst Reading 2/8/2011SenateReferred to Assignments 2/15/2011SenateAdded as Chief Co-Sponsor Sen. Jacqueline Y. Collins 2/23/2011SenateAssigned to Judiciary 3/1/2011SenatePostponed - Judiciary 3/7/2011SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Ira I. Silverstein 3/7/2011SenateSenate Committee Amendment No. 1 Referred to Assignments 3/9/2011SenateSenate Committee Amendment No. 1 Assignments Refers to Judiciary 3/10/2011SenateSenate Committee Amendment No. 1 Adopted 3/10/2011SenateHeld in Judiciary 3/11/2011SenateSenate Committee Amendment No. 2 Filed with Secretary by Sen. Ira I. Silverstein 3/11/2011SenateSenate Committee Amendment No. 2 Referred to Assignments 3/14/2011SenateSenate Committee Amendment No. 2 Assignments Refers to Judiciary 3/15/2011SenateSenate Committee Amendment No. 2 Adopted 3/15/2011SenateDo Pass as Amended Judiciary; 009-001-000 3/15/2011SenatePlaced on Calendar Order of 2nd Reading March 16, 2011 3/28/2011SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Ira I. Silverstein 3/28/2011SenateSenate Floor Amendment No. 3 Referred to Assignments 3/29/2011SenateSenate Floor Amendment No. 3 Assignments Refers to Judiciary 3/29/2011SenateSenate Floor Amendment No. 3 Postponed - Judiciary 3/30/2011SenateSenate Floor Amendment No. 4 Filed with Secretary by Sen. Ira I. Silverstein 3/30/2011SenateSenate Floor Amendment No. 4 Referred to Assignments 3/31/2011SenateSenate Floor Amendment No. 4 Assignments Refers to Judiciary 4/6/2011SenateSenate Floor Amendment No. 4 Recommend Do Adopt Judiciary; 010-000-000 4/8/2011SenateChief Sponsor Changed to Sen. Jacqueline Y. Collins 4/8/2011SenateSenate Floor Amendment No. 4 Chief Sponsor of Senate Floor Amendment Changed to Senator J. Collins 4/8/2011SenateSecond Reading 4/8/2011SenateSenate Floor Amendment No. 4 Adopted; J. Collins 4/8/2011SenatePlaced on Calendar Order of 3rd Reading April 11, 2011 4/13/2011SenateChief Sponsor Changed to Sen. Ira I. Silverstein 4/13/2011SenateAdded as Chief Co-Sponsor Sen. Jacqueline Y. Collins 4/13/2011SenateThird Reading - Passed; 056-000-001 4/13/2011SenateSenate Floor Amendment No. 3 Tabled Pursuant to Rule 5-4(a) 4/13/2011HouseArrived in House 4/27/2011HousePlaced on Calendar Order of First Reading 4/27/2011HouseChief House Sponsor Rep. Barbara Flynn Currie 4/27/2011HouseFirst Reading 4/27/2011HouseReferred to Rules Committee 4/28/2011HouseAssigned to Executive Committee 5/13/2011HouseCommittee Deadline Extended-Rule 9(b) May 20, 2011 5/20/2011HouseFinal Action Deadline Extended-9(b) May 27, 2011 5/25/2011HouseMoved to Suspend Rule 25 Rep. Frank J. Mautino 5/25/2011HouseSuspend Rule 25 - Prevailed 5/27/2011HouseFinal Action Deadline Extended-9(b) May 31, 2011 5/29/2011HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Barbara Flynn Currie 5/29/2011HouseHouse Committee Amendment No. 1 Referred to Rules Committee 5/29/2011HouseHouse Committee Amendment No. 1 Rules Refers to Executive Committee 5/31/2011HouseHouse Committee Amendment No. 1 Tabled Pursuant to Rule 40 5/31/2011HouseRule 19(a) / Re-referred to Rules Committee 10/6/2011HouseFinal Action Deadline Extended-9(b) November 10, 2011 10/6/2011HouseAssigned to Executive Committee 10/25/2011HouseDo Pass / Short Debate Executive Committee; 010-000-000 10/25/2011HousePlaced on Calendar 2nd Reading - Short Debate 10/25/2011HouseSecond Reading - Short Debate 10/25/2011HouseHeld on Calendar Order of Second Reading - Short Debate 10/26/2011HousePlaced on Calendar Order of 3rd Reading - Short Debate 10/26/2011House3/5 Vote Required 10/26/2011HouseAdded Alternate Chief Co-Sponsor Rep. Carol A. Sente 10/26/2011HouseAdded Alternate Chief Co-Sponsor Rep. La Shawn K. Ford 10/26/2011HouseAdded Alternate Chief Co-Sponsor Rep. André M. Thapedi 10/26/2011HouseAdded Alternate Chief Co-Sponsor Rep. Arthur Turner 10/26/2011HouseAdded Alternate Co-Sponsor Rep. Camille Y. Lilly 10/26/2011HouseAdded Alternate Co-Sponsor Rep. Al Riley 10/26/2011HouseAdded Alternate Co-Sponsor Rep. Kelly M. Cassidy 10/26/2011HouseThird Reading - Short Debate - Passed 111-000-004 10/26/2011SenatePassed Both Houses 11/23/2011SenateSent to the Governor 1/13/2012SenateGovernor Approved 1/13/2012SenateEffective Date January 13, 2012 1/13/2012SenatePublic Act . . . . . . . . . 97-0666