Illinois Lawmakers Pass Protection For Tenants Renting Homes In Foreclosure

The Illinois legislature has passed a statute that provides some measure of protection for tenants in possession of a mortgaged home going through the foreclosure process. According to a synopsis of the bill, SB 258:

• "Provides that, in a case of foreclosure where the tenant is current on his or her rent, any order of possession must allow the tenant to retain possession of the property covered in his or her rental agreement (i) for 120 days following the notice of the hearing on the supplemental petition that has been properly served upon the tenant, or (ii) through the duration of his or her lease, whichever is shorter. Provides that the exception for continued possession by the tenant only applies if the tenant continues to pay his or her rent in full during the 120-day period." (see Bill Status of SB 258)

The bill, which passed both houses of the Illinois legislature in May, was signed by the Governor on August 17. The law becomes effective January 1, 2008 (see Bill Status of SB 258).

The statute itself can be found either at Public Act 95-0262, or at 735 ILCS 5/15‑1701.