An Illinois state law goes into effect today that will ensure notice of foreclosure to renters and clarifies eviction procedures.
, signed on July 31, requires the new owner, usually the lender, of a foreclosure to notify residents of an acquired property within 21 days of the foreclosure being completed. Residents must be given contact information for concerns and repair requests as well.
New owners who fail to comply with the new law cannot collect rent from known occupants or terminate an occupant’s tenancy for non-payment. Once the notice is given, however, the new owner may collect all rent due, but renters are not liable for rent paid to the previous owner.
The Illinois Mortgage Foreclosure Law gives tenants 30 days to move after an eviction hearing. According to the National Low Income Coalition
, 40% of families who face foreclosure are renters. In Chicago, 32% of 2008 residential foreclosure filings were made on two-to-six unit properties – a 36% jump from 2007, according to the Woodstock Institute
Write to Jon Prior