Household Bank, FSB v. Lewis, 229 Ill. 2d 173

Summary

The Illinois Supreme Court held that a circuit court may vacate a judicial foreclosure sale at the mortgagee's request when the mortgagor arranges an approved private sale after the statutory redemption period but before confirmation of the judicial sale. The court concluded that withdrawing the motion to confirm prevented the mandatory confirmation provisions of the Illinois Mortgage Foreclosure Law from becoming operative. It also held that the statute extinguishing the equitable right of redemption did not bar the mortgagee from permitting a belated redemption as a matter of grace.

Holdings

1. The confirmation provisions of 735 ILCS 5/15-1508(b) are triggered only when a motion requesting confirmation remains operative; when the mortgagee withdrew its motion before any action on it, the statutory confirmation process was not triggered and the circuit court was not required to confirm the sale.
2. A mortgagee may accept a private sale arranged by the mortgagor and permit redemption as a matter of grace after the statutory redemption period has expired and a judicial sale has occurred, provided the judicial sale has not yet been confirmed.
3. Section 15-1605 extinguishes the mortgagor's equitable right of redemption; it does not prohibit a mortgagee from voluntarily permitting a private sale or redemption before confirmation of the judicial sale.

Questions Presented

1. Whether the Illinois Mortgage Foreclosure Law permits a circuit court to vacate a judicial sale at the mortgagee's request after the statutory redemption period has expired but before the sale has been confirmed, when the mortgagor has arranged an approved private sale that satisfies the mortgage debt.
2. Whether withdrawal of the mortgagee's motion to confirm eliminated the statutory prerequisite for the confirmation process under 735 ILCS 5/15-1508(b).
3. Whether 735 ILCS 5/15-1605 bars a mortgagee from permitting a private sale or redemption after the statutory redemption period and judicial sale but before confirmation.

Disposition

reversed_and_remanded