Illinois Renters’ Rights During Foreclosure

If you’re renting a home or apartment in Illinois and have learned your landlord’s property is facing foreclosure, it can be unsettling. Understanding your rights during foreclosure is crucial, as Illinois law provides specific protections for renters to prevent sudden displacement. This guide covers key rules, eviction timelines, and steps you can take to safeguard your housing situation.

How Foreclosure Affects Renters in Illinois

When a property owner defaults on their mortgage, the lender may begin a foreclosure process—taking legal action to regain possession. This process can directly impact tenants, but state and federal laws define what landlords, banks, and new owners can or cannot do regarding your lease.

Your Rights as a Tenant During Foreclosure

• Right to Notice: Illinois renters must receive written notice before any eviction related to foreclosure.
• Federal “Protecting Tenants at Foreclosure Act” (PTFA): Most renters are entitled to at least 90 days’ written notice before being required to move following foreclosure.
• Lease Honors: If you have a valid lease, in most cases the new owner must honor it until it ends—unless they plan to move in themselves, then they can terminate the lease with proper notice.
• Security Deposit Protection: Your security deposit remains protected; the new owner typically assumes responsibility or must return it when you move out.

If you’re renting month-to-month, you still have the right to at least 90 days’ written notice prior to eviction after a foreclosure sale, under federal law.^[1]

What Notices Should You Receive?

During the foreclosure process, tenants should expect two key notices:

• Foreclosure Sale Notice: You may receive a letter informing you that the building is in foreclosure and that the property may be sold.
• Eviction or Termination Notice: If a new owner wishes to occupy or sell the property, they must provide a written notice—at least 90 days in advance—before requiring you to leave.

If you don’t receive these notices or the new owner pressures you to leave without due process, you have options for recourse. The circuit court in your county handles residential eviction cases in Illinois.

Relevant Forms for Illinois Renters

• Eviction Summons (Form CCD-0101, Civil Action Cover Sheet)
  When is it used? If the new owner files for eviction after foreclosure, you’ll receive this summons. It signals that a legal case has started and explains your need to respond.
  Example: You receive this form in the mail, listing a court date—attend or respond as instructed.
  View Eviction Summons
• Appearance Form (Form CCD-002—Appearance)
  When is it used? If you wish to appear in court regarding an eviction, you must file this form with the court.
  Example: After receiving an eviction notice, you download and fill out this form, then file it with the court by the deadline.
  Download Appearance Form

Always use forms directly from official court or government sources to ensure accuracy.

Relevant Laws and Where to Get Help

• Illinois Forcible Entry and Detainer Act (765 ILCS 735): Main state eviction procedures.
• Protecting Tenants at Foreclosure Act of 2009: Federal renter protections during foreclosure.

If unsure about any notice or document, you can always contact the Illinois Attorney General’s landlord/tenant page for clarifications or complaints.

Action Steps If You Receive a Foreclosure Notice

• Review any notice carefully; check for deadlines and details.
• If you receive an eviction summons, don’t ignore it—use the proper Appearance Form to respond or appear in court.
• Keep records of all communications and notices.
• Contact local tenant services or legal aid if you have concerns or questions.

FAQ: Illinois Renters and Foreclosure

1. Do I have to move out immediately if my building is foreclosed?
   No, you are entitled to at least 90 days’ written notice after the foreclosure sale, and your lease may remain valid until it ends (unless the new owner intends to live in the home).
2. What happens to my security deposit if the landlord loses the property?
   The new owner, whether a bank or individual, is usually responsible for returning your deposit at move-out or transferring it. Document your payments and request a receipt.
3. Can the new owner raise my rent or change my lease terms after foreclosure?
   No, the new owner is required to honor your existing lease terms unless you both agree to changes, or unless state/federal law provides an exception.
4. What should I do if I get an eviction court notice?
   Complete and file the Appearance Form with the court, attend your hearing, and bring all documents showing you are a lawful tenant.

Conclusion: Key Takeaways

• Illinois renters usually have the right to stay for at least 90 days after foreclosure, often longer with a valid lease.
• Only a court can order you to move; never leave just because someone demands it.
• Official court forms and government resources are your best defense—use them promptly if served with legal papers.

Need Help? Resources for Renters

• Illinois Circuit Court Clerk directory (file forms, view your case, get court help)
• Illinois Attorney General Landlord/Tenant Rights (complaints, landlord issues, guides)
• Illinois Department of Financial and Professional Regulation: Tenant Resources
• Cook County Landlord-Tenant Division (for renters in Cook County)

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1. Federal Protecting Tenants at Foreclosure Act of 2009.
2. Illinois Forcible Entry and Detainer Act (765 ILCS 735).
3. Illinois Attorney General: Landlord & Tenant Rights.
4. Illinois Circuit Court Clerks.

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