15-1603.5.Strict foreclosure of an omitted subordinate interest.

Article XV. Mortgage Foreclosure · Part 16. Reinstatement and Redemption · Last amended 2014 · Last verified July 20, 2026

In one sentenceLets a foreclosure sale purchaser who later discovers a subordinate interest holder left out of the original case file a new strict-foreclosure suit against that person, who then gets 30 days to redeem by paying the sale price and related costs before losing the interest for good.

Full Text of 735 ILCS 5/15-1603.5

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(a) As used in this Section, "omitted subordinate interest" means a recorded subordinate interest in real estate where:

(1) the real estate is the subject of a foreclosure action under this Article;

(2) a motion to confirm judicial sale under subsection (b) of Section 15-1508 is either pending or has been granted;

(3) the interest attached to the real estate prior to the filing or recording of any notice in accordance with Sections 2-1901 and 15-1503; and

(4) the person who has the interest was not named in the foreclosure complaint. (b) The holder of the certificate of sale or any person who acquired title pursuant to Section 15-1509 or any subsequent successor, assignee, transferee, or grantee who discovers an omitted subordinate interest may file a strict foreclosure complaint naming the person who has the omitted subordinate interest as the defendant. A complaint filed under this Section must include substantially the following:

(1) the identity of the plaintiff and how the plaintiff acquired its interest in the property which is the subject of the strict foreclosure;

(2) the docket number of the prior foreclosure action and the recording number and date of the mortgage that was previously foreclosed;

(3) the legal description, common address, and parcel identification number of the real estate which is the subject of the strict foreclosure;

(4) the recording number and a copy of the recorded instrument identifying the person who has the omitted subordinate interest that is named as the defendant;

(5) the amount of the successful bid at the foreclosure sale, as stated in the report of sale in the prior foreclosure action, with a copy of the report of sale attached to the complaint;

(6) an allegation that, due to inadvertence or mistake or such other reason as may be applicable, the person who has the omitted subordinate interest was not made a party defendant in the prior foreclosure action and the omitted subordinate interest was not terminated by the judgment of foreclosure and when the subject property was sold by judicial sale; and

(7) a request for relief setting forth the redemption period as provided in this Section and identifying a contact by name and telephone number who will accept tender of the redemption amount. (c) Subject to the objection of the defendant, the court shall enter a judgment extinguishing the omitted subordinate interest. (d) If the defendant objects to the entry of the judgment,

the court, after a hearing, shall enter an order providing either:

(1) that the defendant has not agreed to pay the amount required to redeem, in which event the court shall proceed to enter the judgment; or

(2) that the defendant has agreed to pay the amount required to redeem. (e) The amount required to redeem shall be the sum bid at the prior foreclosure sale plus any costs and fees incurred subsequent to the sale for the payment of taxes, preservation of the property, or any other actions taken by the holder of the certificate of sale to protect its interest in the property. The amount required to redeem shall not include any costs or fees incurred by the plaintiff in the strict foreclosure case filed under this Section. The order shall state that upon payment of the redemption amount within the redemption period, which shall extend 30 days after the entry of the order, title to the real estate shall vest in the defendant who redeems pursuant to this Section. If the defendant subject to the order has not paid the amount required to redeem within the 30-day redemption period, the interest of the defendant in the property is terminated.

(f) A person whose omitted subordinate interest was not terminated by a prior foreclosure action does not have a right to file a strict foreclosure action.

(g) Notwithstanding that the person's omitted subordinate interest in the real estate has been terminated pursuant to this Section, nothing in this Section shall be construed to extinguish or impair any claim of such person in the surplus proceeds of a sale held or distributed pursuant to subsection (d) of Section 15-1512 of this Code after the confirmation of the sale of the real estate for which such person had an omitted subordinate interest.

Plain-English Summary

Sometimes a recorded subordinate interest — a lien, junior mortgage, or similar claim — never gets named as a defendant in a foreclosure case, even though it attached before the lis pendens notice was filed. This section lets the certificate-of-sale holder, the person who took title after the sale, or any later successor file a strict foreclosure complaint against that omitted interest holder once a motion to confirm the sale is pending or granted.

The complaint has to spell out specifics: how the plaintiff acquired its interest, the docket number and recording details of the earlier foreclosure and mortgage, a legal description of the property, the recorded instrument identifying the omitted interest, the winning bid amount from the earlier sale, an explanation of why the interest holder was left out, and a proposed redemption period with a contact for tendering payment.

If the named defendant doesn't object, the court enters judgment extinguishing the omitted interest. If the defendant does object but won't agree to pay the redemption amount, the court still enters judgment. If the defendant agrees to pay, the court instead issues an order setting the redemption amount — the earlier sale's winning bid plus any taxes, preservation costs, or other protective expenses incurred since the sale, but not the costs of this new suit — and giving the defendant 30 days from the order to pay it. Missing that deadline ends the defendant's interest in the property.

A person whose interest survived the earlier foreclosure has no basis to bring this kind of action, and even a successful strict foreclosure under this section doesn't cut off that person's claim to any surplus sale proceeds still to be distributed.

Frequently Asked Questions

What counts as an omitted subordinate interest under this section?

A recorded interest that attached to the property before the lis pendens notice was filed, where the holder was never named as a defendant in the foreclosure and a motion to confirm the sale is pending or has been granted.

Who can file a strict foreclosure complaint against an omitted interest holder?

The holder of the certificate of sale, the person who acquired title after the sale, or any later successor, assignee, transferee, or grantee.

How long does the omitted interest holder have to redeem?

30 days after the court enters the order allowing redemption; missing that deadline terminates the interest.

What must the omitted interest holder pay to redeem?

The winning bid from the earlier foreclosure sale, plus any taxes, preservation costs, or other protective expenses incurred since that sale — not the costs of the new strict foreclosure case.

Does this section affect the omitted interest holder's claim to surplus sale proceeds?

No. Even after the interest is terminated under this section, the holder keeps any claim to surplus proceeds still to be distributed after the sale is confirmed.

Amendment History

(Source: P.A. 98-1099, eff. 8-26-14.)

Source & verification. Section text and amendment history are reproduced verbatim from the Illinois Compiled Statutes, published by the Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026. · Official source

Also known as: omitted subordinate interest foreclosure illinoisstrict foreclosure illinoisleft off foreclosure lawsuit junior lienholderredeem after strict foreclosure illinoisparty not named in foreclosure complaint illinoissurplus proceeds after strict foreclosure