House & Apartment

When landlords purchase rental property, they may take out a mortgage loan to help pay for the building. Mortgages typically require the property owner to pay the lender back over many years. 

The lender may file for foreclosure if the landlord doesn’t make mortgage payments on time or follow the loan terms. At the end of the foreclosure process, the lender may become the new property owner or choose to sell the property to a third party. 

Usually, the foreclosure case is between the lender and the owner, and the tenant won’t be involved in the court case. There are exceptions, such as when the tenant is the owner's child, spouse, or parent.

Talk to an attorney right away if you're a tenant and are served with a Supplemental Petition for Possession or Supplemental Order of Possession in a foreclosure case. If you need a lawyer, visit Get Legal Help.

What changes for tenants during a foreclosure case?

A foreclosure case may take several years to resolve in court. Throughout this process, tenants still have rights and responsibilities, even though their point of contact for rent payments and issues related to their unit may change more than once.

Tenants must still pay rent during foreclosure and can’t use the foreclosure case as a defense in eviction court. Landlords can’t use foreclosure as an excuse to evict tenants, change the locks, turn off utilities that were part of the lease, or stop building maintenance.

The original landlord, a receiver appointed by a judge in the foreclosure case, and a new building owner may fail to share records with each other. Tenants can protect themselves against being evicted for failure to pay rent by keeping records of all rent payments, including:

• when the payment was made,
• who the payment was made to,
• how the payment was delivered, and
• the amount paid.

Note: If you arrange to rent an apartment or house from someone who no longer owns the property, you aren’t protected as a renter. You may have been a victim of fraud. Contact an attorney to decide if you should file a police report.

How can I find out if my building is in foreclosure?

Foreclosure cases are public records. If a foreclosure case exists, you can learn more about it. This may take several steps, which are outlined below.

Unless the judge appoints a receiver or the property is sold, tenants in most of Illinois don’t have to be told about a foreclosure case between the landlord and lender. In greater Cook County, except for Evanston, Oak Park, and Mt. Prospect, and in the City of Chicago, landlords must provide written notice about a foreclosure case to:

• building tenants,
• people who regularly pay rent on behalf of a building tenant, and
• people preparing to sign a lease for a unit in the building.

Learn what Chicago requires the written notice to say and the rights of tenants who don’t receive it in section 5-12-095 of the Chicago Residential Landlord and Tenant Ordinance. If your building is in Cook County but not in Chicago, Evanston, Oak Park, or Mt. Prospect, look at section 42-110(g) of the Cook County Residential Tenant and Landlord Ordinance.

1. Find your building’s PIN

Your building’s property tax PIN, also called “Property Index Number,” “Permanent Index Number,” or sometimes “Parcel Number,” will help you search land records for signs of a foreclosure case.

The county’s property tax assessor can help you find the PIN for your building. County assessors are elected officials who determine how much each property is worth for tax purposes. Many Illinois county assessors’ offices allow you to search for a building PIN online.

Some rental properties have more than one PIN for different parts of the same street address, like a parking lot or side yard. If your building has more than one PIN, write each one down.

2. Check your building’s land records

Figure out which county department keeps the land records for your building. Each county is different, but this office is typically known as the recorder of deeds or county clerk. Either way, the office may keep some records online, or you may need to conduct your search in person.

When you review the land records for your building, look for a document labeled “lis pendens.”  A lis pendens is a document banks must record when they file a foreclosure lawsuit to alert anyone interested in the property. If your building has more than one PIN, check each land record for a lis pendens.

Every lis pendens should have a case number—usually a combination of numbers and letters—towards the top of the document. If you can’t locate the case number on the lis pendens, ask the clerk or recorder’s office staff for help. Write down this information for the next step.

3. Review the foreclosure case

Once you have a case number, you can visit your county’s circuit court clerk to learn about the status of the foreclosure.

Ask the clerk’s office about how and when you can review records. Many Illinois counties offer basic court record searches online. You may need to go to the clerk’s office in person to look at the entire court file.

The foreclosure case file may contain orders entering a judgment, appointing a receiver, or allowing the property to be sold. If you see a judgment in the court file, that usually means the case is close to ending.

To find out how the documents in the court file affect you, talk to an attorney. If you need a lawyer, visit Get Legal Help.

What does a receiver do?

A receiver handles the everyday tasks of a building owner, including collecting rent and paying property taxes.

The receiver must try to find out who lives in the building and introduce themselves to building occupants with a written notice explaining:

• that the occupant isn’t being asked to leave,
• who to contact with concerns and repair requests,
• how to pay rent, and
• the foreclosure case name and number, and the name of the court where the case is taking place.

A receiver can’t collect rent or evict a tenant for non-payment until providing this information. The notice can be hand-delivered to someone over 13 who lives in the unit or sent via first-class mail. Find out more about receivers in the Illinois Mortgage Foreclosure Law at 735 ILCS 5/15-1704.

What if the building is sold to a new owner?

The new owner has to find out who lives in the building and introduce themselves to building occupants with a written notice explaining:

• that the occupant isn’t being asked to leave,
• who to contact with concerns and repair requests,
• how to pay rent, and
• the foreclosure case name and number, and the name of the court where the case is taking place.

The new owner can’t collect rent or evict a tenant for non-payment until they have provided this information. The notice can be hand-delivered to someone over 13 who lives in the unit or sent via first-class mail. Learn more about the statewide requirements for new owners in the Illinois Mortgage Foreclosure Law at 735 ILCS 5/15-1508.5.

In Chicago, the Keep Chicago Renting Ordinance offers additional protections for tenants in foreclosed buildings. These include good-faith negotiations for a new lease or relocation assistance of $10,600. Tenant complaint forms and the documents new owners need to comply with the law are available from the City of Chicago.