Today, August 21, 2013, Governor Quinn signed Senate Bill 56, which will require anyone acquiring residential property through a foreclosure to honor their tenants existing lease or provide a minimum of 90 days for renters to secure new housing. This new law takes effect in 90 days.
The new law extends, clarifies and strengthens key provisions of the federal Protecting Tenants in Foreclosure Act that is set to expire in 2014. Is estimated that 40% of families impacted by foreclosures are renters who are unaware that their landlord stopped making mortgage payments. The new law will prevent tenants from sudden eviction because of a foreclosure.
In the City of Chicago, rental properties are covered by the Residential Landlord and Tenant Ordinance, which states that within a seven day period that a landlord is served with the foreclosure complaint they must disclose, in writing, to all tenants of the property and foreclosure action has been filed, including the court, case name, and case number.
In Illinois today there are 51,703 per-foreclosures, 11,500 foreclosure, of which 3,804 are short sales. Statistic shows that Illinois foreclosure rate is higher than the national average of 1%, Illinois average foreclosure rate is at 15%.