Tenants Rights in Foreclosure:

The Illinois legislature recognized the problems with the current system and passed the Right to Possess law which goes into effect January 1, 2008. [10]  It specifies that a bank may only evict a tenant 120 days after notice of the foreclosure hearing or through the duration of the lease, whichever is shorter.  While opponents of the statute argue the newly imposed restriction will make it more expensive for banks to do business and result in higher mortgage rates, proponents contend that the statute adds much needed tenant protection to the foreclosure process.  Some disagree with both positions, arguing that the law does very little.  Since the statute gives tenants 120 days from the notice of the hearing, not the judgment of the court, it has almost no effect on the rights of the tenants since the judgment may come months after initial notice of the hearing and the tenant is still left guessing as to the outcome. 

A law that focuses on giving tenants time to relocate after the day of judgment instead of the initial hearing would certainly be more effective than a law that gives 120 days following the notice of hearing in protecting tenants’ rights.  Nevertheless, the Right to Possess puts tenants in a better position than they were in before.  At the very least, tenants are now aware of the minimum number of days they will be permitted to occupy the premises even if the property is foreclosed.

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Greg Bedoe
847-902-9898