House & Apartment

Residential foreclosure cases happen when there is a problem with a loan used to buy a property for people to live in. They differ from commercial foreclosure cases, which involve property used for business activities such as shops or factories.

Specific laws apply to residential foreclosure cases because they affect people's rights to live in the property. This can include tenants living in someone else’s property.

When property owners purchase rental property, they may take out a mortgage loan to help pay for the building. Mortgages typically require the property owner to pay the lender back over many years.

The lender may file for foreclosure if the property owner fails to make mortgage payments on time or to follow the loan terms. At the end of the foreclosure process, the lender may become the new property owner or choose to sell the property to a third party.

Usually, a residential foreclosure case is between the lender and the owner. Any tenants living in the property will not be involved in the court case unless an exception applies. For example, a tenant who is the owner's child, spouse, or parent may be part of the foreclosure case.

Tenants should talk with a lawyer right away if they:

• Purchased their home using a contract for deed and learn of a foreclosure issue, or
• Receive a Supplemental Petition for Possession or Supplemental Order of Possession.

Do not wait to seek legal help in these situations. The timeline from when a tenant learns about a foreclosure case to when they can potentially be evicted can be short. A lawyer can help assess the situation and figure out the tenant’s options. To find a lawyer, visit Get Legal Help.

No. A foreclosure case may take several years to resolve in court. Throughout this process, tenants still have rights and responsibilities. This is true even though their point of contact for rent payments and housing issues may change multiple times. 

During a foreclosure case, the point of contact for tenants may be:

• The original property owner,
• A temporary owner appointed by a judge (called a receiver), or
• A new property owner.

These points of contact might fail to share records with each other. This can lead to issues for tenants. For example, a point of contact might not know that a tenant has paid rent, which might lead them to threaten to evict the tenant.

Yes, tenants must still pay rent during a foreclosure involving the property owner. They cannot use the foreclosure case as a defense in eviction court. However, a Supplemental Petition for Possession or Supplemental Order of Possession in the foreclosure case may mean the tenants are about to be evicted.

Tenants can protect themselves against being evicted for failure to pay rent by keeping records of all rent payments, including:

• When the payment was made,
• Who received the payment,
• How the payment was delivered, and
• The amount paid.

No, property owners cannot use being in foreclosure as a reason to evict tenants, change locks, turn off utilities, or otherwise force tenants out. However, there is a lawful way for some tenants to be evicted by a judge's order in the foreclosure case. 

A Supplemental Petition for Possession or Supplemental Order of Possession in the foreclosure case are part of the process to evict tenants in foreclosure cases. Tenants should talk with a lawyer right away if they receive either of these papers. To find a lawyer, visit Get Legal Help.

No, property owners cannot use foreclosure as a reason to stop building maintenance. They are still responsible for maintaining habitable conditions and following all laws related to property upkeep.

A Supplemental Petition for Possession is the name of a legal paper filed in a foreclosure case. This type of paper asks the judge to evict a tenant who is not otherwise a party to the case. The Supplemental Petition for Possession must be:

• Served on the tenant along with notice of the hearing, and
• Set for a hearing at a court date at least 21 days after the tenant is served.

Tenants who receive a Supplemental Petition for Possession should talk with a lawyer right away. To find a lawyer, visit Get Legal Help.

A Supplemental Order of Possession is a court order issued after a hearing about a Supplemental Petition for Possession. After the hearing, the judge can decide to:

• Enter an eviction order against the tenant, or
• Allow the tenant to stay.

Tenants who receive a Supplemental Order for Possession should talk with a lawyer right away. To find a lawyer, visit Get Legal Help.

When a tenant is evicted from a property in foreclosure by a Supplemental Order of Possession, the amount of time the tenant gets to stay depends on:

• Whether they have continued paying rent on time or made good-faith efforts to pay, and

• How long their lease lasts after the date they were served with the hearing notice for the Supplemental Petition of Possession.

The tenant's stay will not be extended if they have not paid rent on time or cannot prove they tried to do so. Even if they have a right to stay for a specific length of time, they must also continue paying rent on time for the remainder of their stay in the property.

If the tenant has continued paying their rent on time or made good-faith efforts to pay, the length of time they can stay after a judge enters an eviction order in a Supplemental Order of Possession depends on when their lease ends. This may look like:

• For a month-to-month tenant whose lease ends within 30 days after the order was issued, the tenant can stay for 30 days after the order was issued,

• For a lease that ends up to 120 days after the hearing notice was served, the tenant can stay until the end of their lease, and

• For a lease that ends more than 120 days after the hearing notice was served, the tenant may remain for 120 days after the hearing notice was served.

In most of Illinois, tenants do not have to be told about a foreclosure case between the property owner and lender. However, if a judge appoints a receiver or the property is sold, tenants must be notified.

In the City of Chicago and greater Cook County, except for Evanston, Oak Park, and Mt. Prospect, property owners must provide written notice about a foreclosure case to:

• building tenants,
• people who regularly pay rent on behalf of a building tenant, and
• people preparing to sign a lease for a unit in the building.

Section 42-110(g) of the Cook County Residential Tenant and Landlord Ordinance lists what the written notice must say and the rights of tenants who fail to receive a notice. This ordinance covers buildings in Cook County, except those in Chicago, Evanston, Oak Park, and Mt. Prospect.

Section 5-12-095 of the Chicago Residential Landlord and Tenant Ordinance lists what the written notice must say and the rights of tenants who fail to receive notice. This ordinance covers buildings in the City of Chicago.

Foreclosure cases are public records. If a foreclosure case exists, there are ways to learn about it. This may take several steps.

1. Find the building’s PIN

The building’s property tax PIN, also called “Property Index Number,” “Permanent Index Number,” or sometimes “Parcel Number,” will help with searching land records for signs of a foreclosure case.

The county’s property tax assessor can help with finding a building's PIN. County assessors are elected officials who determine how much each property is worth for tax purposes. Some county websites allow people to search for a building's PIN online.

Some rental properties have more than one PIN for different parts of the same street address, like a parking lot or side yard. If a building has more than one PIN, write each one down.

2. Check the building’s land records

Figure out which county department keeps the land records for the building. Each county is different, but this office is typically known as the recorder of deeds or county clerk. Either way, the office may keep some records online. Offices may also require people to search records in person.

When reviewing the land records for the building, look for a document labeled “lis pendens.”  A lis pendens is a document lenders must record when they file a foreclosure lawsuit. The lis pendens alerts anyone who looks at the file that there is a foreclosure case. If the building has more than one PIN, check each land record for a lis pendens.

Every lis pendens should have a case number towards the top of the document. Case numbers are usually a combination of numbers and letters. If there is no case number on the lis pendens, ask the clerk or recorder’s office staff for help. Write down this information for the next step.

3. Review the foreclosure case

After finding a case number, visit the county's circuit court clerk to learn about the status of the foreclosure.

Ask the clerk’s office about how and when to review records. Many Illinois counties offer basic court record searches online. Many require people to visit the clerk’s office in person to view the entire court file.

The foreclosure case file may contain orders entering a judgment, appointing a receiver, or allowing the property to be sold. If there is a judgment in the court file, that usually means the case is close to ending.

Talk to an attorney to find out how the documents in the court file affect tenants' rights. To find a lawyer, visit Get Legal Help.

A receiver handles the everyday tasks of a building owner, including collecting rent and paying property taxes.

The receiver must try to find out who lives in the building and introduce themselves to building occupants with a written notice explaining:

• The occupant is not being asked to leave,
• Who to contact with concerns and repair requests,
• How to pay rent, and
• The foreclosure case name and number, and the name of the court where the case is taking place.

A receiver cannot collect rent or evict a tenant for non-payment until this information is provided. The notice can be hand-delivered to someone over 13 who lives in the unit or sent via first-class mail. Find out more about receivers in the Illinois Mortgage Foreclosure Law at 735 ILCS 5/15-1704.

The new owner has to find out who lives in the building and introduce themselves to building occupants with a written notice explaining:

• that the occupant isn’t being asked to leave,
• who to contact with concerns and repair requests,
• how to pay rent, and
• the foreclosure case name and number, and the name of the court where the case is taking place.

The new owner can’t collect rent or evict a tenant for non-payment until they have provided this information. The notice can be hand-delivered to someone over 13 who lives in the unit or sent via first-class mail. Learn more about the statewide requirements for new owners in the Illinois Mortgage Foreclosure Law at 735 ILCS 5/15-1508.5.

In Chicago, the Keep Chicago Renting Ordinance offers additional protections for tenants in foreclosed buildings. These include good-faith negotiations for a new lease or relocation assistance of $10,600.  Learn more about the rights of Chicago tenants on the CHI 311 website.

If the building was bought in a foreclosure sale, the new owner is liable for the deposit only if they got it from the old owner. Otherwise, the old owner is liable.

However, if the foreclosure sale happened in Chicago, the new owner is liable for the deposit. It does not matter if the new owner never got it from the old owner.

Use Get Legal Help to find local legal resources. For help accessing court records to look at a foreclosure case file, contact the county's circuit court clerk.