Understanding Foreclosure: Disclosure of Foreclosure Status and New Owner's Information

Under the Evanston Residential Landlord and Tenant Ordinance, the landlord must notify the tenant about foreclosure.

• If a Foreclosure Complaint is Filed: If the landlord or property owner is served with a foreclosure complaint, they must inform all tenants in writing within 7 days that a foreclosure action has been filed against the property. The landlord must also send this notice to any third party who regularly pays rent on behalf of a tenant.
• Before Signing a Lease: Before you sign a lease, the landlord must tell you in writing if the property is part of a foreclosure action.

• Content of the Disclosure: The written notice must include the court where the foreclosure case is happening, the case name, and case number. It must also include this statement:

  "This is not a notice to vacate the premises. This notice does not mean ownership of the building has changed. All tenants are still responsible for payment of rent and other obligations under the rental agreement. The owner or housing provider is still responsible for their obligations under the rental agreement. You shall receive additional notice if there is change in owner."

If the landlord violates the Evanston RLTO:

1. A tenant may end the lease by giving written notice. The notice must say when the lease ends, and the date must be within 30 days from when it is given.
2. A tenant can also sue the landlord for $200. The tenant can also pursue any other damages experienced and attorney's fees. Section 5-3-5-2 of the RLTO. v

Under Illinois state law, tenant has a right to be notified in writing if the owner of the building changes.

The foreclosure court may enter an Order of Possession with an Order Confirming Sale. This changes who owns the building. A tenant must be notified of this in writing. A tenant can learn if this has happened from the case records which are held by the local courthouse.

Within 21 days of taking ownership of the property, a new owner must:

• Try to find out the names and addresses of all tenants in the building.
• Give the tenant written notice of:
  • The foreclosure;
  • The name of the new landlord;
  • Who to contact for repairs;
  • The name and case number of the foreclosure case; and
  • How to pay rent
• Post the written notice on the property

New owners cannot collect rent until they give the tenant notice. If they don't, a tenant can get an eviction case thrown out of court.