Real Estate Law

Old Second National Bank v. Jafry

Old Second National Bank v. Jafry
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2016 IL App (2d) 150825
Decision Date: 
Tuesday, June 28, 2016
District: 
2d Dist.
Division/County: 
DuPage Co.
Holding: 
Affirmed.
Justice: 
BURKE

Plaintiff bank obtained judgment of foreclosure on property, and Bank purchased property at sheriff's sale. Court approved sale and entered deficiency judgment, and 4 months later Bank sold property for amount greater than purchase price at sheriff's sale. Bank then initiated enforcement proceedings against Defendants, seeking full deficiency judgment. When a mortgagee obtains a deficiency judgment against mortgagor in foreclosure action, purchases property at judicial sale, and then resells it to a third party for amount in excess of price paid at judicial sale, mortgagor is not entitled to setoff in enforcement proceedings to recover deficiency judgment, because foreclosure terminates mortgagor-mortgagee relationship. (HUDSON, concurring; SCHOSTOK, dissenting.)

Senate Bill 2359

Topic: 
Condominium Property Act

(Mulroe, D-Chicago; Martwick, D-Chicago) deletes the ability of condominium instruments to supersede a majority vote of the entire board of managers to do the following: assign the right of the association to future income from common expenses or other sources and to mortgage or pledge substantially all of the remaining assets of the association. Passed both chambers. 

 

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U.S. Bank Trust National Association v. Junior

U.S. Bank Trust National Association v. Junior
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2016 IL App (1st) 152109
Decision Date: 
Friday, June 24, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
REYES

Court properly approved sale of residential property in judicial foreclosure action. Defendants argued that Illinois mortgage foreclosure procedures violate due process as Foreclosure Law allows foreclosure to proceed without original documentary evidence. Supreme Court Rule 113 provides that a copy of the note, as it currently exists, including all indorsements, must be attached to mortgage foreclosure complaint at time of filing. Rule 113(b) does not require Plaintiff to provide the original note, but expressly states a copy of the note is to be attached. Thus, Rule 113(b) is consistent with Section 15-1506 of Foreclosure Law which does not expressly require original loan documents be presented, but requires copies to be filed.(LAMPKIN, concurring; GORDON, dissenting.)

House Bill 4658

Topic: 
Condominium and Common Interest Community Ombudsperson Act

(Nekritz, D-Buffalo Grove; Steans, D-Chicago) makes a number of changes to this Act. (1) Exempts from FOIA any information collected by the Department of Financial and Professional Regulation. This exemption does not extend to educational, training, and outreach material, statistical data, or operational information maintained by the Department in administering the Act. (2) Clarifies that neither the Ombudsperson nor the Department has the authority to consider matters that may constitute unlawful discrimination under local, State, or federal law. (3) Makes numerous technical changes including deleting the registration requirement by an entity. (4) Pushes back the repeal date of the entire Act by one year to July 1, 2022. Passed both chambers. 

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Senate Bill 2677

Topic: 
Predatory lending database program

(Althoff, R-Crystal Lake; Tryon, R-Crystal Lake) requires a copy of a lis pendens for a residential mortgage foreclosure in the program area to be filed electronically with the Department of Financial and Professional Regulation after July 1, 2016. Passed both chambers. 

 

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Senate Bill 2450

Topic: 
Mechanics Lien Act

(Althoff, R-McHenry; Nekritz, D-Buffalo Grove) extends the sunset for current law until December 31, 2020. It requires work to be done or materials furnished to obtain a lien within three years for residential property and five years for any other kind of property. Passed both chambers. 

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Public Act 99-503

Topic: 
Personal Information Protection Act

(Biss, D-Skokie; Williams, D-Chicago) makes the following changes to the Act.

(1) Expands the definition of protected “personal information” to include a person’s first name or first initial and the last name that is encrypted or redacted but the unlocking keys have been breached if one of several “data elements” have also been unlawfully acquired. (2) Expands “data elements” to include medical information, health insurance information, unique biometric data. (3) Expands protected “personal information” to include user name or email address and password or security question information that permits a person’s online accounts to be breached. (4) Requires a data collector that owns or licenses, or maintains or stores but does not own or license, records that contain personal information of Illinois resident to implement and maintain reasonable security measures to protect those records from unauthorized access or use. (5) Compliance with the federal HIPAA complies with this Act as long as the covered entity provides notice of a breach to the Illinois Attorney General within notifying the Secretary of Health and Human Services. Effective January 1, 2017. 

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City of Joliet, Ill. v. New West, L.P.

Federal 7th Circuit Court
City of Joliet, Ill. v. New West, L.P.
Civil Court
Condemnation
Citation
Case Number: 
No. 15-2183
Decision Date: 
June 17, 2016
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in finding in instant condemnation action that plaintiff-City was entitled to possess and demolish defendant’s housing complex, where record supported Dist. Ct.’s finding that housing complex was dilapidated and crime ridden, and where plaintiff intended to use land to extend existing park. Ct. further rejected defendant’s claim that demolition of housing complex would pose disparate impact on African-Americans living in complex, since, although African Americans formed largest racial group in complex, any impact claim must be based on number of African-Americans living in city. Moreover, defendant failed to show that required move from complex constituted cognizable injury to residents of complex given Dist. Ct.’s finding that housing complex was dilapidated and crime ridden. Fact that judge, rather than jury, generated instant findings of fact in condemnation proceeding did not require different result.

U.S. Bank National Association v. Johnston

U.S. Bank National Association v. Johnston
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2016 IL App (2d) 150128
Decision Date: 
Monday, June 13, 2016
District: 
2d Dist.
Division/County: 
Kane Co.
Holding: 
Reversed and remanded.
Justice: 
McLAREN

Plaintiff bank filed foreclosure action against 3 defendants, and they moved to dismiss based on prior default judgment entered in favor of another bank.  One defendant also argued that he was a bona fide purchaser for value of property. Court erred by dismissing complaint as barred by res judicata. Name of proper defendant did not appear on the face of the summonses in the other bank's foreclosure action, and thus element of res judicata, that a final judgment on merits has been reached by court of competent jurisdiction, is not met. Defendant named in the other action does not exist, and 2 other named defendants were not properly served; thus, judgments entered are void.(JORGENSEN and BIRKETT, concurring.)