Understanding Tenant Rights: Rights of a Tenant During Foreclosure

What is foreclosure?

A foreclosure is when a bank takes back a building from an owner. This usually happens because the owner didn't make mortgage payments.

The entire foreclosure process can last from 7 months to over a year. Sometimes, the bank and owner reach an agreement and the case ends. The owner might also sell the property to a new owner.

A tenant’s rights and duties don't change when the landlord is in foreclosure. For example:

• The tenant and the landlord still have to follow the lease;

• The tenant has to pay rent; and

• The landlord, or whoever owns or is managing the property, still has to maintain the property.

A tenant cannot be evicted just because the landlord is in foreclosure. Also, the fact that the landlord is in foreclosure is not a defense for the tenant in eviction court.

Explore the links below for tenant's rights during and after a foreclosure:

• Utilities and repairs
• Receivers
• Disclosure of new owner's information
• Options to stay or move
• Security deposit return
• How to find out if the landlord is in foreclosure

These tenant rights and protections are based on federal, state, and Chicago laws.