My Landlord Was Sued for Mortgage Foreclosure

My Landlord Was Sued for Mortgage Foreclosure

Last updated: December 2013

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You cannot be evicted just because your landlord is in foreclosure.Your rights as a tenant do not change while your landlord is in foreclosure.You and your landlord still have to follow the terms of the lease. When your landlord goes through foreclosure, you get notice of:The name of your new landlordWho to contact for repairsThe name and case number of the foreclosure caseHow to pay rentNew 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? Your old landlord does not have to tell you about the foreclosure. But, foreclosures are public records. Go to the 'Related Articles' section to find out how to get the record. 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. Within 21 days of owning the property, the new landlord must give you written notice of:Who to contact for repairs; The name and case number of the foreclosure case; and How to pay rent.What if my new landlord doesn't tell me about the foreclosure? You do not need to pay rent until the new landlord gives you written notice about the foreclosure. When the new landlord gives you the notice, then you will have to pay all of the past rent. Do my rights as a tenant change if my landlord is in foreclosure? No. Just like before the foreclosure: You and your landlord still have to follow your lease;You have to pay rent; andYour landlord, or whoever owns the property, still has to maintain the property.You cannot be evicted just because your landlord is in foreclosure.What is a Receiver? A Receiver is a person chosen by the court to manage the property. A Receiver will collect rent. The job of the Receiver is to find and tell all tenants: The property is in foreclosureThe foreclosure case numberThe new property managerHow to pay rentWho to contact for repairsThe Receiver must tell tenants within 21 days of the court order, and cannot collect rent until they give this notice. The Receiver must also put a flyer 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.Can I stay in my rental for my entire lease when my landlord is in foreclosure? It depends on if you are a bona fide lease holder and when you signed your lease. You are a bona fide lease holder if: 1. You do not own the building; 2. You are not the child, spouse, or parent of the owner;3. Your lease was made under fair terms; and4. Your rent is the same amount as other units around you (do not count housing vouchers).If you are a bona fide lease holder, and you signed your lease before the new landlord became the owner, then you can stay for the entire length of your lease. There is an exception. If the new owner wants to use the property as their primary home, then you can stay 90 days. For week-to-week and month-to-month leases, you can stay 90 days.Note: After December of 2014, if you are a bona fide lease holder and signed the lease before the judicial sale, you can stay in your rental for up to one year. If you are not a bona fide lease holder, or you signed your lease after the new landlord became the owner, you get 90 days before the new landlord can start the eviction process. You may not have 90 days if:You were named in the foreclosure lawsuit from the beginning. This means you were served and your name was in the order of possession; orThe new owner filed a Supplemental Petition for Possession against you. In that case, you have 120 days from the date of the filing until you must leave. See the common question “What is a Supplemental Petition for Possession” for more information. Do I have additional rights if I live in Chicago and my property is sold to a new owner? Yes. Your old landlord must give you written notice within 7 days of finding out about the foreclosure, when:Your landlord does not live on the property; orYou live in a building with more than 6 units. If your old landlord does not give you written notice, you can:End your lease. You must tell your landlord in writing within 30 days. The notice must say when you want to end your leaseCollect $200 if you are in a lawsuit against your landlord and can prove your landlord did not give you the required notice; andCollect a fee equal to two times the amount of your security deposit. Plus, if your new landlord does not give you written notice within 21 days of taking over the property, you may be able to collect a fee equal to two times the amount of your security deposit. In addition, if you are a qualified tenant you can get: Lease renewal with a cap on rent increases, orA one-time rental relocation assistance payment of $10,600.You are a qualified tenant if: 1. You do not own the building; 2. You are not the child, spouse, or parent of the owner;3. Your lease was made under fair terms; and4. Your rent is the same amount as other units around you (do not count housing vouchers).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 is a document filed with the court by the new owner. It brings you as a tenant into the foreclosure lawsuit. The new landlord can file this up to 90 days after the court holds the hearing to confirm your building will be sold.If you are brought into the lawsuit, you can stay in your rental for the rest of your lease, up to 120 days. If you are a bona fide lease holder, you cannot be brought into the lawsuit by a Supplemental Petition for Possession, and this does not apply to you.What is a Forcible Entry and Detainer action? A Forcible Entry and Detainer action is an eviction. A new landlord can file this to ask the court to end your lease early. What happens to my security deposit after the foreclosure? Your old landlord must:Give your security deposit back to you, or Transfer your security deposit to the new landlord.If the old landlord does not transfer it, the the new landlord is not responsible for the security deposit if the old landlord does not give it back to you.If the your old landlord does transfer it, the new landlord has to give you written notice within 21 days of the transfer. If you do receive notice of the transfer, then you may get your security deposit back from the new landlord once when you move out.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 6 units, then: Your new landlord is responsible for your security deposit; and If your old landlord transfers the security deposit, your old landlord must tell you within 10 days, and the new landlord must tell you within 14 days.If your old landlord or new landlord does not tell you, you may be able to get up to two times the amount of your security deposit back.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? Yes. You can have the records of your eviction sealed if:You were evicted after being brought into the foreclosure lawsuit by a Supplemental Petition for Possession; You were evicted by a Forcible Entry and Detainer action, but only because your old landlord was in foreclosure; orYou are a bona fide lease holder.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; andIt might be harder for you to get a loan or rent a new apartment.For more information on how to get the record of your eviction sealed, see the “Related Articles” section.

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