Last updated: November 2011

How will I know if there is a mortgage foreclosure case filed against my landlord?

You will get court papers. There are 3 different types of court papers you can get:

• Complaint for Mortgage Foreclosure
• Supplementary Petition for Possession
• Summons and Complaint for Forcible Entry and Detainer

Is my landlord required to tell me his building is in foreclosure?

No, unless you live in Chicago.

For foreclosure cases in Chicago that began after November 20, 2008, the landlord does have to tell current tenants about foreclosure filings within 7 days of being served with a foreclosure complaint. The landlord must also inform any potential tenants before they move in. Tenants who are not properly informed about the foreclosure can sue for $200 in damages and/or terminate their leases.

Will my lease automatically end?

No. You must continue to pay your rent. You have the right to stay until the end of your lease during the foreclosure process.  You must be given 90 day notice if you are being asked to move.

To whom do I pay my rent?

Pay your rent to your current landlord unless you get a written notice from the court or a court official to pay the rent to someone else.

What if my landlord or the new owner shows me the foreclosure papers and says that I have to move?

You do not have to move. In Illinois a landlord cannot force you to move without following definite legal steps in court. He can force you to move only if he follows the steps outlined below.

What if I do not have a written lease?

If you do not have a written lease you will not automatically have to move.

Your current landlord must first give you a 30-day notice to terminate your tenancy. The notice must state that your tenancy will terminate on the last day of the calendar month unless rent is due sometime other than the first of the month.

To determine whether the notice provides you with the full 30 days, exclude the date of service but include the stated termination date. Thus, to terminate your tenancy at the end of February, in a non-leap year, the landlord must serve the notice on or before January 29. In months of 30 days, the notice must be served on or before the last day of the preceding month. In months of 31 days, the notice must be served on or before the first day of the same month.

The mortgage company or new owner of the building must then follow the steps outlined below.

How will I know if the mortgage company is going to ask me to leave the building?

You will get court papers, whether or not you have a lease. The papers may refer to you either by name or as something such as "unknown tenants, unknown occupants, or non-record claimants." The court papers you will receive include:

• Petition for Possession, or Supplemental Petition for Possession, or Complaint for Forcible Entry and Detainer. The court papers you receive will have one of these titles.
• Notice of Hearing on the Petition. The court paper will give you the time, date, and location of your court hearing. You must go to this hearing so you can tell the judge why you should be allowed to stay in your apartment. You should also go to this hearing if your landlord owes you any money. Your landlord could owe you money for advance rent that you have paid or if you have a claim for improvements or money damages. You may want to have a lawyer accompany you to the hearing to help you explain to the judge why you should not have to move or to help get the money your landlord owes you.

If I have to move, how much time will I have?

If you are named as a party to the lawsuit against your landlord (i.e., you receive the Complaint for Mortgage Foreclosure and your name is listed on that paper):

• The mortgage company can force you to move only 90 days after the judge enters an order confirming the sale of the building. This will be about 8 months after you receive the Complaint for Mortgage Foreclosure. At the hearing the judge will decide when you have to move. You have a right to ask for a jury trial, to file a paper stating why you should not have to move, and to bring witnesses to court to tell your side of the story. If you have a written lease and you have paid your rent every month, you probably will not have to move until your lease is up, as long as you continue to pay rent.
• If you have a written lease and are a bona fide tenant, you can stay in the building until the term of the lease is up or 90 days after the judge confirms the sale of the building, whichever is later. This law reflects the Federal Protecting Tenants in Foreclosure Act of 2009 and is valid until December 31, 2012.
• However, if the new owner will be using the building as their primary residence, then it does not matter whether or not there is a written lease, you will be given a 90-day notice of the eviction and will have to move even if the term of the lease has not ended. See the Federal Protecting Tenants in Foreclosure Act.

If you get a Supplemental Petition for Possession:

• The mortgage company can give you a Supplemental Petition for Possession at any time while the foreclosure case is pending and prior to the sale of the building. However, you must be specifically named in the Petition. It cannot name "unknown occupants."
• The mortgage company can also give you a Supplemental Petition for Possession within 90 days after the judge has entered an order confirming the sale of the building. This will be about 8 months after the foreclosure case begins.
• The hearing will be held no less than 21 days after you get the Supplemental Petition. At the hearing the judge will decide when you have to move. If you have a written lease and you have paid your rent every month, you will probably not have to move until your lease is up as long as you pay your rent. However, even if you pay your rent, the maximum time that you may demand to stay is 120 days.

If you get a Petition for Forcible Entry and Detainer (eviction):

• The mortgage company or new owner cannot file an eviction case against you until the judge enters an order confirming the sale of the building and only after giving you 90 days notice of the Petition. This will be about 8 months after the foreclosure case begins.
• If you have a written lease and are a bona fide tenant, you can stay in the building until the term of the lease is up or 90 days after the judge confirms the sale of the building, whichever is later. This law reflects the Federal Protecting Tenants in Foreclosure Act of 2009 and is valid until December 31, 2012.
• However, if the new owner will be using the building as his or her primary residence, then it does not matter whether or not there is a written lease, you be given a 90-day notice of the eviction and will have to move even if the term of the lease has not ended.
• If you are a bona fide tenant, regardless of what kind of lease you have, you are still entitled to 90-days notice of the eviction.

If you need extra time to recover from illness or until one of your children completes school, explain this to the judge. The judge may give you the extra time you need if you agree to pay rent.

You can only be evicted from your apartment by the sheriff after a judge signs an Order of Possession.

How do I know if I am a bona fide tenant?

You are a bona fide tenant if:

• You are not the previous owner of the building or a parent, child, or spouse of the previous owner;
• You are not in a familial or business relationship with the previous owner, so that the lease was entered into at “arms-length;” or
• You are not paying rent below fair market value unless the rent is reduced or subsidized by federal, state, or local law.

Where can I find information on the status of my building?

In Chicago, you can call Chancery Court, which handles foreclosures, at (312) 603-5133 to get more information about your individual case. You can also visit the Cook County Clerk of the Circuit Court or Help for Homeowners and Renters to get case information online. You will need your landlord's full name (please keep in mind that the loan may be in multiple names, and your landlord may not be the primary person listed in the case).

In other areas, you can contact the Circuit Court Clerk in your county for foreclosure case information.

What happens after the foreclosure?

If you have been evicted because your landlords building is in foreclosure you can ask the court to seal your record. Future landlords or lenders may think that you were foreclosed on and deny your application. By sealing the records, future landlords and lenders would not be able to see that you were evicted.

For help sealing your record please see the Motion to Seal a Record of Eviction in the related articles section. 

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