Foreclosures

PA 95-262, SB 258, Mortgage Foreclosure, Effective Date: January 1, 2008, Statute Amended: 935 ILCS 5/15-1701

Illinois Public Act 95-262 amends the Illinois Mortgage Foreclosure Law, Section 1701 by extending the period that a tenant may retain possession of the property covered by the tenant's rental agreement when a court issues an order of possession after a mortgagee has successfully foreclosed on a mortgage on that property. Section 1701 states that if a foreclosure on property is pending or completed, a mortgagee-in-possession of the property, a receiver, a holder of the property deed, or a purchaser of the property may serve notice on a tenant on that property that the mortgagee requested a hearing to obtain an order of possession of the property. That hearing may be held 21 days after such notice is served. The act provides that if the tenant is current on rental payments, then the tenant must be allowed to retain possession of the property for the shorter of either "120 days following the notice of the hearing" or the duration of the tenant's lease. It should be noted, however, that the act stipulates that the tenant will lose possession during this period if the tenant fails to pay his or her rent in full.

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