Sewickley v. Chicago Title Land Trust Company
2012 IL App (1st) 112977
| Ill. App. Ct. | 2012Background
- Commercial loan to trustee secured by 4008 N. Lincoln Ave., Chicago; loan amount $975,000 with default in July 2009 leaving balance ~$824,539 and accruing interest.
- foreclosure action filed Nov 9, 2009; service effected via GAO 2007-03 due to high volume in mortgage foreclosures.
- Defendants Athans and trustee served; The Lincoln Restaurant served later; none answered within 30 days; default motions entered starting June 2010.
- Judgment of foreclosure and sale entered Oct 13, 2010; judicial sale held Jan 14, 2011; credit bid of $300,000 by Sewickley, LLC.
- Sewickley, LLC later substituted as plaintiff (Feb 15, 2011); sale confirmed after hearings (June 17, 2011); defendants sought rehearing (July 2011) unsuccessfully.
- Court affirmed circuit court’s order confirming sale and denying relief, and denied objections to the sale.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether GAO 2007-03 service complies with 2-202. | Service valid under GAO 2007-03. | Service defective under 2-202. | Service proper; no due process violation. |
| Whether the circuit court properly confirmed the judicial sale. | Sale should be confirmed as properly conducted. | Credit bid undervalued; sale should be disrupted. | Sale affirmed; no grounds to disturb under 15-1508. |
| Whether the credit bid was grossly inadequate to warrant reversal. | Credit bid reflects market value; no defect shown. | Apprisal excerpts suggest inadequacy. | Inadequacy alone not enough; no reversal. |
| waiver due to failure to raise objections at hearing. | Defendants waived by not opposing at hearing. | Objections timely raised via motion for rehearing. | Waiver applies; objections waived. |
| Whether eviction/possession order required modification. | Order sufficient as to possession. | Eviction rights not expressly included. | Order amendable by supplemental possession order; not reversible. |
Key Cases Cited
- U.S. Bank, N.A. v. Dzis, 2011 IL App (1st) 102812 (Ill. App. (1st) 2011) (mortgagor has no right to choose process server in foreclosure)
- OneWest Bank, FSB v. Markowicz, 2012 IL App (1st) 111187 (Ill. App. (1st) 2012) ( GAO 2007-03 service upheld)
- Deutsche Bank National v. Burtley, 371 Ill. App. 3d 1 (Ill. App. 2006) (standard for reviewing sale confirmation)
- Resolution Trust Corp. v. Holtzman, 248 Ill. App. 3d 105 (Ill. App. 1993) (inadequacy of bid alone does not defeat sale)
- Illini Federal Savings & Loan Ass’n v. Doering, 162 Ill. App. 3d 768 (Ill. App. 1987) (considerations of value in foreclosure sale)
- Fleet Mortgage Corp. v. Deale, 287 Ill. App. 3d 385 (Ill. App. 1997) (misstep in sale timing; limits on relief for irregularities)
- Commercial Credit Loans, Inc. v. Espinoza, 293 Ill. App. 3d 923 (Ill. App. 1997) (limited grounds to deny sale based on price; context matters)
- Levy v. Broadway-Carmen Building Corp., 366 Ill. 279 (Ill. 1937) (historic guidance on adequacy vs. public policy in foreclosures)
- Grubert v. Cosmopolitan National Bank of Chicago, 269 Ill. App. 3d 408 (Ill. App. 1995) (waiver of objections when not raised at hearing)
- Levy v. Broadway-Carmen Building Corp., 366 Ill. 279 (Ill. 1937) (reaffirming inadequacy as a factor but not alone grounds to reverse)