Story URL: http://news.medill.northwestern.edu/chicago/news.aspx?id=144247
Story Retrieval Date: 11/23/2009 11:45:30 PM CST

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New foreclosure law gives renters a sigh of relief

by Janeen Wynn
Nov 03, 2009


Since the foreclosure crisis hit, lawmakers have scrambled to protect homeowners from losing their property -- but what about renters?

A bill sponsored by state legislators Jacqueline Collins and Will Burns, both Chicago Democrats, provides protection for renters who are living in residences that are being foreclosed. Gov. Pat Quinn signed the bill this summer and it took effect last week.

“We want to provide protection for renters who are doing the right thing by paying their bills,” said Burns, who represents the Near South Side.

Under the Illinois Mortgage Foreclosure Law, renters are entitled to be notified when properties they live in are being foreclosed.

Burns said that before this law took effect, renters who were paying their rent could be evicted from their homes with little to no notice if the landlords were not paying the mortgage. That, he said, is unfair.

Before, renters in foreclosed properties wouldn’t be aware until the last minute—often leaving families scrambling to find adequate housing. This law requires landlords to give tenants a minimum 30-day notice to move after the eviction hearing.

Samantha Tuttle, a staff attorney at the Shriver National Center on Poverty Law, said it is no longer optional for landlords or new management to notify tenants of impending foreclosure. It’s a must.

“Before this law, renters were not entitled notice when property changes hands,” Tuttle said. “But this doesn’t protect against physical condition of the property they are living in.”

Collins, who represents several neighborhoods on the South Side, said this bill guarantees notice to tenants living in foreclosed properties.

A landlord who is undergoing foreclosure must immediately inform tenants, provide contact information for services or repair requests and post notices with contact information at the property.

“Renters make up about 40 percent of the families facing the loss of their housing due to foreclosure and more than one in every five foreclosed properties is a rental property nationally,” Collins said. “It’s important renters are afforded the same rights that we’ve worked so hard to grant homeowners.”

In 2008 there were 6,571 residential foreclosure filings on two- to six-unit properties. This was a 36 percent increase from 2007. The bill also specifies that once a property is foreclosed, the new management must make good faith efforts to notify tenants of new ownership.