Chicago Tenants Rights and Foreclosures – FAQ
I come across a lot of tenants that are in units that have
been foreclosed. This is definitely a stressful situation.
They were paying their rent on time, but the owner stopped
paying the mortgage. Now they need to find somewhere else
to live and fast!
I came across a website that has some very useful information
regarding this topic.
The website address is:
http://www.tenants-rights.org/faq-tenants-and-foreclosure/
I decided to re-post this information, because it might help
someone that is in this tough situation. If you are in this situation,
I can help you find your next rental.
Tenants impacted by foreclosure:
Frequently Asked Questions
What is a foreclosure?
When an owner falls behind in mortgage payments,
foreclosure is the court process by which a bank
forces the sale of a building used as security in
order to pay off the owner’s debt.
Who owns the building while it is in court?
Just because a building is in foreclosure does NOT
mean that the building has been foreclosed on or
will be foreclosed on. Until the court approves a sale
and there is a confirmation of sale, your landlord still
owns the building. In most cases, the bank acquires
the property and becomes the owner.
What are some common signs that my building might
be in foreclosure?
- Maintenance suddenly stops
- Utility shutoff notices
- Banks sending notices to the landlord
- Realtors hanging around the building, or taking
pictures of the building
- The landlord disappears and/or stops collecting rent.
How long does the foreclosure process take?
The court process takes an average of nine months. If the owner
is not able to satisfy the bank’s requirements, the court puts the
property up for sale where it is usually bought by the bank.
Where can I find information on the status of my building?
The most accurate way to find out information will be to get the
PIN # of the property by going to www.newschicago.org. Once
you have the PIN, and then call the Recorder of Deeds at
312 603 5050. For more information about the case you may
then call the Chancery Court, at (312) 603-5133. You can also
go to http://www.cookcountyclerkofcourt.org – go to online case
info – full docket search – and search the chancery division for the
landlord’s name under defendant, or using the case #.
Are Chicago landlords required to tell their tenants that
their building is in foreclosure?
Unless you live in an owner occupied building of six units or
less or the foreclosure case began before November 20, 2008,
the landlord is required to tell current tenants about foreclosure
filings within seven days of being served with a foreclosure
complaint. The landlord must also inform any potential tenants
before they move in. Tenants who were not properly informed
about the foreclosure can sue for $200 in damages and/or
terminate their leases.
Do I still have to pay rent?
Yes. As long as you are living in the unit you must pay rent.
Checks or money orders are best so that you have proof of
payment. You can still be evicted for nonpayment of rent
even though your landlord is in foreclosure.
What if I don’t know to whom to pay rent or the
landlord stops collecting it?
Contact a lawyer to assist you in determining the new
owner of the property. Be sure to ask any new people
claiming to be the owner for proof before giving them
rent money. The law only requires that tenants make
a good faith effort to pay the rent if the landlord
disappears. Some examples of good faith efforts to
pay rent may include:
- Holding the rent in a money order
- Using the rent on utilities your landlord was paying
- Using the rent to make repairs to the property
- Sending a letter via certified mail, requesting information
from the new owner on where to send the rent.
(Keep a copy of the letter for yourself)
Do I have the right to break my lease because my landlord is in foreclosure?
No (However, if you are covered under the Chicago Residential
Landlord Tenant Ordinance and did not receive proper notice,
please see above under “Are Chicago landlords required to tell
their tenants that their building is in foreclosure????
The bank has taken over the building. What do I do?
The bank is your new landlord. You must pay them rent once
they have notified you as to whom and where to pay, and
they are responsible for repairs, any utilities paid by the
old landlord, etc. If you are uncertain of who to pay,
hold your rent in escrow.
The sheriff posted a notice saying that my landlord or unknown
occupants must vacate the building. Does this apply to me?
No. If your name is not on the notice, you do not have to move.
Immediately contact the sheriff’s office at (312) 603-3365 to inform
them that there are tenants in the building and contact an attorney
to get legal help. If the sheriff shows up, you will need to show them
identification, as well as your lease, a piece of mail, or other evidence
proving that you are a tenant in the building and not the landlord.
Will I have to move? How much time will I have
once a new owner takes over?
If the building is foreclosed upon and sold, the new owner must
give you 90 days or until the end of your lease, whichever is longer.
However, if the new owner would like to use the unit as a personal
residence, they do not have to honor the lease, but they must give
you at lest 90 days notice prior to eviction proceedings. Once the
lease expires, the owner must give you a 30 day notice in writing
before proceeding in eviction court.
(This is assuming that you are lease complaint and up to date on rent.)
NOTE: The sheriff’s office can and will evict tenants during the winter,
with the exception if it is 15 degrees or snowing.
Can the bank or new owner put me out without a court date?
No. If anyone tries to evict you before taking you to court, then it is an illegal
eviction, also known as a lockout. Call the police, file a police report, and
contact the Tenants Rights Hotline at 773 292 4988.
If you receive a summons to court make sure to contact an attorney.
Will this eviction show on my record?
If you were evicted solely because of the foreclosure your attorney
can petition the judge to seal the record. If you are evicted for
nonpayment of rent, it will be on your record.
The bank offered me a “Cash for Keys??? deal. What should I do?
Sometimes banks offer tenants a cash for keys deal in order to
vacate the building more quickly. Evaluate the entire situation
first and make sure you have enough time to find a safe and
decent apartment. Make sure you get any deal in writing and
talk to a lawyer before you sign. If the bank does not offer a
settlement feel free to ask for one.
How do I get my security deposit back?
The bank is not responsible for your deposit. If you do not
receive your security deposit back within 45 days of moving
you can take your landlord to court. If you know your
landlord is in foreclosure court or is about to lose the building
ask for written permission to live out your security deposit.
If you live out your deposit without permission you can be
evicted for non-payment of rent.
Additional References:
Building Inspectors: 311
(Call for an inspection if you have repairs that need
to be made or are lacking utilities)
Assistance moving or with a security deposit: 311
(Inform the assistant that your landlord is in foreclosure)
Lawyers Committee for Better Housing: (312) 347-7600
Legal Assistance Foundation (Subsidized Tenants): (312) 341-1070
Sheriffs Eviction Unit: (312) 603-3365
Chancery Court: (312) 603-5133
Metropolitan Tenants Organization Tenants’ Rights Hotline:
(773) 292-4988 Open: Monday-Friday, 1-5pm
Chicago Legal Clinic: 773 731 1762
Tenants in Cook County Suburbs: 312 738 9200
Citizens Utility Board: 1 800 669 5556
Security Deposit Attorneys:
Cabrini Green Legal Clinic: 312 266 7345
Chicago Legal Clinic: 773 731 1762
(You can call the Tenants Rights Hotline for more
attorneys at 773 292 4988)
Until the next time,
Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!
Visit me online: www.773property.com
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