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 2014.
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 repossession.
She 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."
Benjamin 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?”
He 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?”
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