|My Landlord Was Sued for Mortgage Foreclosure||
Last updated: December 2013
You cannot be evicted just because your landlord is going through foreclosure.Your rights as a tenant do not change while your landlord is going through foreclosure unless the court appoints a Receiver. You and your landlord still have to follow the terms of the lease. When your landlord goes through foreclosure, you are entitled to notice of what is happening to the property, who your new landlord is, and how to pay rent. New owners cannot collect rent until they give you notice. Click on words that appear like 'this' to learn what these words mean.How do I know if my landlord is in foreclosure? If you live in Chicago, your landlord must give you written notice within 7 days of being served a foreclosure complaint on the property, when:Your landlord does not live on the property; or You live in a building with more than 6 units. Outside of Chicago, old landlords are not required to tell you that the building is in foreclosure. Foreclosures are part of the public record, and you can find out if your building is in foreclosure. Go to the common question 'How can I get information about my property' for more information.What notice should I get if my landlord is sued for foreclosure? The new landlord must give you written notice within 21 days after the confirmation sale, or when the new landlord takes ownership. If you rent in Chicago and: Your landlord does not live on the property where you live, or You live in a building with more than six unitsThen there is a Chicago ordinance that requires your old landlord to give you written notice within 7 days of being served with a foreclosure complaint on the property. What if my landlord doesn't give me the required notice? Throughout the State of Illinois, you do not need to pay rent until the new landlord gives you notice. In Chicago, if your old landlord does not give you the required notice in writing, you can:End your lease. You must give your landlord written notice. The notice must say when you want to end your lease, which must be in 30 days or less; Collect $200 if you are in a lawsuit against your landlord and can prove your landlord did not give you the required noticeHow can I get information about my property? Follow these steps to get information on the status of your property:Contact the Circuit Court Clerk in your county. Usually, all you need is the property address; Look up the property at your county Assessor’s Office. The Assessor can give you information about your building, such as the Property Index Number (PIN);Go to your county’s Recorder of Deeds office and use your PIN to look up your property. The Recorder of Deeds should show whether a foreclosure case has been filed against the property;Look at the 'Notice of Foreclosure' which shows the foreclosure case number; Visit your county’s Circuit Court or www. Judici.com and enter the case number to see the status of the foreclosure case. You should see everything that happened since the filing of the foreclosure; andOnce you know where the case is in the foreclosure process, you can find out what your rights are as a tenant of the property.What are my rights as a tenant if my landlord is going through foreclosure? Your rights as a tenant do not change while your landlord is going through foreclosure unless the court appoints a Receiver. See the next question for an explanation of a Receiver.Your rights include:You and your landlord still have to follow your lease;You still have to pay rent for as long as you live on the property;Your landlord, or whoever owns the property where you live, still has to maintain the property; andYou cannot be evicted just because your landlord is going through foreclosure.What is a Receiver? If your landlord is going through foreclosure, the foreclosure court may appoint a Receiver to operate and manage the property. In Illinois, within 21 days of taking possession of the property a Receiver will:Find out who lives thereTell every occupant that the property is in foreclosureGive them the case numberTell them that the management of the property has changedGive them a phone number for any concerns or repairsThe Receiver cannot collect rent until they give this notice. The Receiver must also post a notice on the property so that the tenants know where to send the rent. You may also get this information from your county’s Circuit Court.What are my rights under federal law if my property is sold to a new owner? The Protecting Tenants in Foreclosure Act (“PTFA”) applies after your property is sold to the new owner through foreclosure, which, is called the Confirmation of Sale. The PTFA expires on December 31, 2014. Under the PTFA, you must be given at least a 90-day notice to leave by the new owner. You cannot be forced to leave, or evicted, before the end of the 90-day notice.You are protected by the PTFA if:You do not own the property, or are the child, spouse, or parent of the owner;Your lease was made under fair terms; andYour rent is not much lower than fair market value, unless your rent is reduced or subsidized by federal, state, or local law.Also, if you signed your lease before the confirmation of sale, you can stay in the unit until the end of your lease. There is an exception, if the new owner plans to live in your property as their primary home. However, even if the exception applies, they still must give you at least a 90-day notice to leave.What are my rights as a tenant under Illinois law if my property is sold to a new owner? If you are a bona fide lease holder meaning: You do not own the property, or are not the child, spouse, or parent of the ownerYour lease was made under fair terms; andYour rent is not much lower than fair market value, unless your rent is reduced or subsidized by federal, state, or local law.Then you may be able to stay in your rental for the entire length of the lease up to one year, and your new landlord must give you 90 days notice before the end of your lease. If you do not meet those 3 requirements, Illinois law requires the new owner to give you at least 90-day notice before they file a forcible entry and detainer action(eviction). You cannot be evicted before the end of the 90-day notice. You may not be given this 90-day notice if:The mortgage company included you in the foreclosure lawsuit from the beginning, meaning that you were named as a defendant and properly served; and You were included in the order of possession. If you are not included in the foreclosure lawsuit from the beginning, the new owner may also file a Supplemental Petition for Possession against you with the foreclosure court.Do I have additional rights if I live in Chicago and my property is sold to a new owner? Yes. If you rent in Chicago, you are protected under the “Keep Chicago Renting Ordinance” (“KCRO”). All tenants are entitled to notice within 21 days of the new ownership. Notice must be delivered to you, or someone who lives in your rental who is at least 13 years old. The notice must also be posted on the main entrance of each foreclosed unit. New owners cannot collect rent until proper notice is given. In addition, some qualified tenants are entitled to:Lease renewal with a cap on rent increases, orA one-time rental relocation assistance payment of $10,600You are a qualified tenant if: You do not own the property, or are the child, spouse, or parent of the ownerYour lease was made under fair terms; andYour rent is not much lower than fair market value, unless your rent is reduced or subsidized by federal, state, or local law.If your new landlord does not renew your lease, or pay rental assistance, you may file a lawsuit against the new landlord. If you win you can collect your attorney’s fees. What is a Supplemental Petition for Possession? A Supplemental Petition for Possession brings you into the foreclosure lawsuit against your landlord and lets the foreclosure court end your right to stay on the property where you live. A Supplemental Petition for Possession can be filed up to 90 days after the foreclosure court confirms the sale of the property.A Supplemental Petition for Possession allows you to stay on the property for:120 days after you are served with a notice of the supplemental petition;The rest of your lease if your lease ends within the 120 day period; orIf the rest of your lease is less than 30 days, you can stay for at least 30 days.However, if there has already been a confirmation of sale, the federal law (PTFA) gives you 90 days notice before you can be evicted. So, it may not be legal for the new owner to file a Supplemental Petition for Possession after the confirmation of sale. Even so, the new owner can have you evicted after giving you 90 days’ notice.Supplemental Petition for Possessions will not have any effect you if you are a bona fide lease holder. What is a Forcible Entry and Detainer action? A Forcible Entry and Detainer is an eviction. To start the eviction process, the new owner has to give anyone living in the property who is not named in the foreclosure case a 90-day notice to leave the property.It is more common for the new owner to evict by filing a Forcible Entry and Detainer than by filing a Supplemental Petition for Possession.If you are a bona fide lease holder, the new landlord may not file a Forcible Entry and Detainer until 90 days before the end of your lease. What happens to my security deposit after the foreclosure? If your landlord has gone through foreclosure and your building is sold to a new owner, your landlord has to either return your security deposit to you or transfer it to the new owner. If they do not transfer it, the new owner is not responsible for the security deposit.If they transfer it, the new owner has to give you written notice within 21 days of the transfer.If you do receive notice of the transfer, you can try to collect your security deposit from the new owner once you move out.However, if you live in Chicago and your landlord does not live on the property where you live or you live in a building with more than six units, the following rules apply:If your security deposit is transferred to the new owner, your landlord must give you notice within 10 days of the transfer;The new owner becomes responsible for your security deposit even before your landlord transfers your security deposit;Once your landlord transfers your security deposit to the new owner, the new owner has to give you written notice within 14 days of the transfer; andIf your landlord or the new owner does not give you the required notice under the Chicago RLTO, you may be able to collect damages equal to two times the amount of your security deposit.You may want to talk to a lawyer before starting a lawsuit over your security deposit. For a list of organizations that may be able to help you, see the “Find Legal Help” section.Can the record of my eviction be sealed? When a record is sealed, it cannot be seen by employers or other members of the public. Your record can still be seen by law enforcement agencies or by the public if a judge orders that they can see it.It is risky to keep an eviction on your record because:It can appear on your credit history;Banks and future landlords may blame you for the eviction; and It might be harder for you to get a loan or rent a new apartment. Under Illinois law, you can have the records of your eviction sealed if:You were evicted after the new owner of the property where you live filed a Supplemental Petition for Possession against you with the foreclosure court; orYou were evicted by the new owner of the property where you live by a Forcible Entry and Detainer action but you would not have been evicted if your landlord had not gone through foreclosure.For more information on how to get the record of your eviction sealed, see Sealing an Eviction When My Landlord Was Foreclosed.
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