Public Act 97-0666 (IL)


Foreclosure; Short Sale

PA 97-0666 (SB 1259). Effective Date: Immediately – January 13, 2012. New Act: 735 ILCS 5/15-1401.1.

This Act adds a section that defines "short sale" to mean "the sale of a 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 note."

The Act states that in the case of a residential real estate foreclosure, if (i) the mortgagor presents to the mortgagee a bona fide written offer from a third party to purchase the foreclosure property, (ii) the written offer to purchase constitutes a short sale, and (iii) the mortgagor makes a written request to the mortgagee to approve the sale on the terms of the offer to purchase, then the mortgagee is required to respond within 90 days after receipt of the written offer and request.

The Act specifies that the mortgagee must decide whether to accept the mortgagor’s short sale offer. The mortgagee’s failure to accept the offer does not impair or abrogate the rights of the mortgagee.


735 ILCS 5/15-1401.1
Bill Number: 
SB 1259
Public Act or Public Law Number: 
PA 97-0666
By: ATG Underwriting Department | Posted on: Fri, 03/23/2012 - 2:33pm