There’s lots buzz running around our fair city; City of Chicago’s Mayor, Rahm Emanuel, has proposed a bill that would require real estate investors that purchase multi-unit buildings from a foreclosure auction to pay renters to move.
According to the Chicago Tribune, He is proposing that in order for the new owner to be fair to the current tenant, that the tenant receive $12,000 to move. The other option is to provide the tenant with a long term rent-controlled lease.
Benjamin De Los Monteros, of Cherry Picker Investments said, “It was quite the stir yesterday sitting in the auctions yesterday. Many investors were in arms about this bill. Of course no one wants to see tenants put out on the street, but penalizing the foreclosure buyer is not the answer.” Benjamin went on to point out that many clients buying at a foreclosure auctions are seeking lower price points, and foreclosures are already backed up in Illinois due to it being a judicial state. Therefore he said, “If this measure was adopted, it would be one more thing to discourage investors from cleaning up the shadow inventory."
Everyone agrees that we would like to put this horrendous housing market behind us as soon as possible and return to a traditional market.