In the last 60 days, there have been 2 major pushes in the
Illinois rental market as it pertains to tenants’
rights when occupying a foreclosed unit, or a rental unit in receivership
by the bank.
Currently, when the building is bought by an investor out of
foreclosure, a tenant can be evicted at the end of their lease term. If there is no active lease and the tenant is
dwelling month to month, then the new landlord can evict the tenant, but only
after delivering a 90 day notice.
If the new owner plans to use the property as his or her
primary residence, then he or she has the right to terminate the existing lease
90 days after they deliver a notice to the tenant.
These regulations are nearing the end of their term, in
Now, Illinois State Senator Jacqueline Collins, from
Chicago, is on the forefront of changing these regulations and taking action
all the way to the Governor. She stated
that this new piece of legislation is designed to keep more tenants in their
homes and provide more rights in the case of a foreclosure sale or
went on to say, "As a legislator with a consistent commitment to housing
rights and keeping people in their homes, I do not want the residents of
Illinois to fall through the cracks when federal protections expire or are inadequate. I want Illinois to be known for its
comprehensive approach to the foreclosure crisis so our neighborhoods can
weather this storm and emerge stronger."
De Los Monteros of Cherry Picker Investments, a firm
exclusively working with real estate investors, shared his thoughts from a
different perspective. He believes
that, “With countless properties that are backlogged in the court system which
still have to go to auction, I feel it just another delay tactic to take the
focus off of what is most important: restoring our real estate market and
allowing property values to trend back up after stabilizing. If an investor cannot come in and address
these distressed properties in a timely manner, who else is going to step in?”
also said, “They city of Chicago is already trying to push a $12,000
payout to every tenant/unit relocated when a building has gone into receivership. Many of these ‘tenants’ have chosen to stop
paying rent, which is likely not a coincidence.
So people living for free get to stay in their apartments? How does this change anything?”
what are your thoughts?
Thank you, we'll be in touch!