IL HB4680

Mortgagors and mortgagees may agree to terminate the mortgagor's interest in mortgaged real estate after default, but the mortgagee must file an action to confirm the deed in lieu of foreclosure and prove by clear and convincing documentary evidence (not oral testimony or affidavit) that it is the actual, legal mortgagee entitled to bring the action.

In foreclosure actions, the mortgagee must prove by clear and convincing documentary evidence, other than by oral testimony or affidavit, that it is the actual, legal mortgagee entitled to bring the foreclosure action.

In consent foreclosure proceedings, the mortgagee must prove by clear and convincing documentary evidence that it is the actual, legal mortgagee before the court can enter judgment vesting title in the mortgagee.

Acceptance of a deed in lieu of foreclosure relieves all persons who owe payment or performance obligations secured by the mortgage from personal liability, except where they agree otherwise in a contemporaneous instrument.

A deed in lieu of foreclosure does not effect a merger of the mortgagee's interest as mortgagee and the mortgagee's interest derived from the deed, and mere tender or recording of a deed does not constitute acceptance by the mortgagee.