Understanding Disclosures: Landlord Must Disclose Foreclosure Action

Tenants have certain rights and protections when their rented premises become subject to foreclosure proceedings.

Disclosure Requirements

When an owner or landlord receives a foreclosure complaint, they must disclose this information in writing to all tenants within seven days, as stated in the law (735 ILCS 5/15-1504). The owner or landlord must also provide written notice of foreclosure to any third party consistently involved in rent payments on behalf of a tenant.

Additionally, before a tenant enters into a rental agreement, the owner or landlord must disclose in writing that they are named in a foreclosure complaint.

Contents of the Written Disclosure

The written disclosure must include:

• the name of the court where the foreclosure action is pending,
• the case name,
• case number, and
• the following 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 landlord is still responsible for their obligations under the rental agreement. You shall receive additional notice if there is a change in owner."

Tenant's Rights and Remedies

If the owner or landlord fails to comply with these disclosure requirements, the tenant has the right to terminate the rental agreement by providing written notice. The termination date should be specified, which must be no later than thirty days from the date of the notice.

Moreover, if a tenant proves in a legal proceeding that the owner or landlord violated these disclosure requirements, the tenant may be entitled to recover damages of Two Hundred Dollars ($200.00) in addition to any other available remedies.