Topic:
Strict foreclosure of an omitted subordinate interest
(Mulroe, D-Chicago; Nekritz, D-Buffalo Grove) creates a procedure for the holder of title from a judicial sale to foreclose and clear title on an “omitted subordinate interest.” An OSI is a junior lienholder that was not made a party defendant in the previous foreclosure action and whose OSI was not terminated by the judgment of foreclosure when the property was sold by judicial sale. If the junior lienholder wishes to redeem, it must do so within 30 days after entry of the order redeeming title. The redemption sum will include the bid at the prior foreclosure sale, any costs and fees incurred after the sale for the payment of taxes, preservation of the property, or any other actions by the holder of the certificate of sale required to protect its interest in the property. The redemption amount will not include any costs or fees incurred by the holder of title that filed the strict foreclosure case. Effective July 16, 2014.
Editor's Note: This is incorrect; the text of this bill is on the Governor's desk but he has taken no action on it yet. The text above relates to Senate Bill 2730. Therefore, Senate Bill 2730 is not a public act. My apologies.