State Senator Collins’ measure protects tenants during foreclosure

SPRINGFIELD, IL – Illinois State Senator Jacqueline Y. Collins (D-Chicago 16^th) secured passage of legislation to protect tenants living in a building in foreclosure.

“Tenants should not be evicted on short notice because of the financial circumstances of their landlord,” Collins said. “This legislation establishes that paying tenants have rights under state law, even when the rental property is repossessed by a bank or sold.”

Currently, tenants living in foreclosed properties are protected under federal law, but those protections are set to sunset in 2014. An owner who acquires a property in a foreclosure proceeding can evict a tenant only at the end of the lease or, if there is no lease, with 90 days’ notice. If the new owner intends to use the property as his or her primary residence, he or she may terminate the lease but must give 90 days’ notice. A bank foreclosing on a rental property also must inform tenants of where they should pay their rent.

“As a legislator with a consistent commitment to housing rights and keeping people in their homes, I do not want the residents of Illinois to fall through the cracks when federal protections expire or are inadequate,” Collins said. “I want Illinois to be known for its comprehensive approach to the foreclosure crisis so our neighborhoods can weather this storm and emerge stronger.”