15-1501.Parties.

Article XV. Mortgage Foreclosure · Part 15. Judicial Foreclosure Procedure · Last amended 2016 · Last verified July 20, 2026

In one sentenceSection 15-1501 sets out who must and may be a party to an Illinois foreclosure, when a claimant can intervene (with a firm 30-day window for noticed nonrecord claimants), and when a court can skip appointing a special representative for a deceased mortgagor.

Full Text of 735 ILCS 5/15-1501

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(a) Necessary Parties. For the purposes of Section 2-405 of the Code of Civil Procedure, only (i) the mortgagor and (ii) other persons (but not guarantors) who owe payment of indebtedness or the performance of other obligations secured by the mortgage and against whom personal liability is asserted shall be necessary parties defendant in a foreclosure. The court may proceed to adjudicate their respective interests, but any disposition of the mortgaged real estate shall be subject to (i) the interests of all other persons not made a party or (ii) interests in the mortgaged real estate not otherwise barred or terminated in the foreclosure. (b) Permissible Parties. Any party may join as a party any other person, although such person is not a necessary party, including, without limitation, the following:

(1) All persons having a possessory interest in the mortgaged real estate;

(2) A mortgagor's spouse who has waived the right of homestead;

(3) A trustee holding an interest in the mortgaged real estate or a beneficiary of such trust;

(4) The owner or holder of a note secured by a trust deed;

(5) Guarantors, provided that in a foreclosure any such guarantor also may be joined as a party in a separate count in an action on such guarantor's guaranty;

(6) The State of Illinois or any political subdivision thereof, where a foreclosure involves real estate upon which the State or such subdivision has an interest or claim for lien, in which case "An Act in relation to immunity for the State of Illinois", approved December 10, 1971, as amended, shall not be effective;

(7) The United States of America or any agency or department thereof where a foreclosure involves real estate upon which the United States of America or such agency or department has an interest or a claim for lien; (8) Any assignee of leases or rents relating to the mortgaged real estate;

(9) Any person who may have a lien under the Mechanic's Lien Act; and

(10) Any other mortgagee or claimant. (c) Unknown Owners. Any unknown owner may be made a party in accordance with Section 2-413 of the Code of Civil Procedure. (d) Right to Become Party. Any person who has or claims an interest in real estate which is the subject of a foreclosure or an interest in any debt secured by the mortgage shall have an unconditional right to appear and become a party in such foreclosure in accordance with subsection (e) of Section 15-1501, provided, that neither such appearance by a lessee whose interest in the real estate is subordinate to the interest being foreclosed, nor the act of making such lessee a party, shall result in the termination of the lessee's lease unless the termination of the lease or lessee's interest in the mortgaged real estate is specifically ordered by the court in the judgment of foreclosure. (e) Time of Intervention.

(1) Of Right. A person not a party, other than a nonrecord claimant given notice in accordance with paragraph (2) of subsection (c) of Section 15-1502, who has or claims an interest in the mortgaged real estate may appear and become a party at any time prior to the entry of judgment of foreclosure. A nonrecord claimant given such notice may appear and become a party at any time prior to the earlier of (i) the entry of a judgment of foreclosure or (ii) 30 days after such notice is given.

(2) In Court's Discretion. After the right to intervene expires and prior to the sale in accordance with the judgment, the court may permit a person who has or claims an interest in the mortgaged real estate to appear and become a party on such terms as the court may deem just.

(3) Later Right. After the sale of the mortgaged real estate in accordance with a judgment of foreclosure and prior to the entry of an order confirming the sale, a person who has or claims an interest in the mortgaged real estate, may appear and become a party, on such terms as the court may deem just, for the sole purpose of claiming an interest in the proceeds of sale. Any such party shall be deemed a party from the commencement of the foreclosure, and the interest of such party in the real estate shall be subject to all orders and judgments entered in the foreclosure.

(4) Termination of Interest. Except as provided in Section 15-1501(d), the interest of any person who is allowed to appear and become a party shall be terminated, and the interest of such party in the real estate shall attach to the proceeds of sale. (f) Separate Actions. Any mortgagee or claimant, other than the mortgagee who commences a foreclosure, whose interest in the mortgaged real estate is recorded prior to the filing of a notice of foreclosure in accordance with this Article but who is not made a party to such foreclosure, shall not be barred from filing a separate foreclosure (i) as an intervening defendant or counterclaimant in accordance with subsections (d) and (e) of Section 15-1501 if a judgment of foreclosure has not been entered in the original foreclosure or (ii) in a new foreclosure subsequent to the entry of a judgment of foreclosure in the original foreclosure. (g) Service on the State of Illinois. When making the State of Illinois a party to a foreclosure, summons may be served by sending, by registered or certified mail, a copy of the summons and the complaint to the Attorney General. The complaint shall set forth with particularity the nature of the interest or lien of the State of Illinois. If such interest or lien appears in a recorded instrument, the complaint must state the document number of the instrument and the office wherein it was recorded. (h) Special Representatives. With respect to the property that is the subject of the action, the court is not required to appoint a special representative for a deceased mortgagor for the purpose of defending the action, if there is a:

(1) living person, persons, or entity that holds a 100% interest in the property, by virtue of being the deceased mortgagor's surviving joint tenant or surviving tenant by the entirety; (2) beneficiary under a transfer on death instrument executed by the deceased mortgagor prior to death; (3) person, persons, or entity that was conveyed title to the property by the deceased mortgagor prior to death;

(4) person, persons, or entity that was conveyed title to the property from the deceased mortgagor's probate estate by the administrator or executor; or

(5) trust that was conveyed title to the property by: (A) the deceased mortgagor prior to death; or (B) any other person, persons, or entity that is identified in this subsection (h) as being exempt from the requirement to appoint a special representative. In no event may a deficiency judgment be sought or entered in the foreclosure case pursuant to subsection (e) of Section 15-1508 against a deceased mortgagor.

End

Plain-English Summary

Section 15-1501 starts narrow: the only necessary parties are the mortgagor and other persons (not guarantors) who owe payment or performance on the secured debt and against whom personal liability is sought. The court can still adjudicate their interests, but any disposition of the property remains subject to the interests of everyone else who isn't joined or otherwise barred. Beyond that core, any party may join a long list of permissive parties -- possessory interest holders, a spouse who waived homestead, trustees and beneficiaries, note holders, guarantors (who can also be sued separately on their guaranty), the State or the United States when they hold an interest or lien, lease or rent assignees, mechanics lien claimants, and other mortgagees or claimants. Unknown owners come in under Section 2-413.

The right to intervene runs on a schedule. Anyone with a claimed interest, other than a noticed nonrecord claimant, can appear and become a party as of right any time before judgment of foreclosure. A nonrecord claimant who received notice under Section 15-1502(c)(2) gets a narrower window: the earlier of the judgment of foreclosure or 30 days after that notice. After that right expires and before the sale, the court has discretion to let someone in on terms it deems just. After the sale but before confirmation, a person may still appear to claim an interest in the sale proceeds alone -- treated as a party from the start of the case, but limited to the proceeds rather than the real estate itself.

A mortgagee or claimant whose recorded interest predates the notice of foreclosure but who isn't joined isn't shut out entirely: it may still bring a separate action, either as an intervenor before judgment or in a new foreclosure afterward. When the State of Illinois is a party, service goes to the Attorney General by registered or certified mail, and the complaint must specifically describe the State's lien or interest, including its recording information if any.

Subsection (h) addresses a deceased mortgagor. The court need not appoint a special representative to defend the case if a living person or entity already holds full title -- as a surviving joint tenant, a transfer-on-death beneficiary, a grantee from the mortgagor before death, a grantee from the probate estate, or certain trusts. And regardless of who defends, Section 15-1501(h) itself bars any deficiency judgment from being sought or entered against a deceased mortgagor in the foreclosure case.

Frequently Asked Questions

Who must be joined as a necessary party to an Illinois foreclosure?

Only the mortgagor and other persons -- not guarantors -- who owe payment or performance on the secured debt and against whom personal liability is asserted.

How long does a nonrecord claimant have to intervene after receiving notice of the foreclosure?

Until the earlier of the entry of judgment of foreclosure or 30 days after the notice is given, under Section 15-1501(e)(1).

Can someone still claim an interest after the property has already been sold?

Yes, but only for the sole purpose of claiming a share of the sale proceeds -- a person may appear between the sale and confirmation on terms the court deems just, and is treated as a party from the start of the case.

Must a court appoint a special representative for every deceased mortgagor?

No. Section 15-1501(h) lists situations -- such as a surviving joint tenant holding full title, a transfer-on-death beneficiary, or a grantee from the estate -- where no special representative is required.

Can a deficiency judgment be entered against a deceased mortgagor?

No. Section 15-1501(h) states that no deficiency judgment under Section 15-1508(e) may be sought or entered against a deceased mortgagor.

Amendment History

(Source: P.A. 98-514, eff. 11-19-13; 99-24, eff. 1-1-16.)

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

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