Renting a home that was foreclosed in Illinois: your rights

Your rights as a renter in Illinois, in order

1. Federal floor, written into Illinois law

   After the court confirms the sale

   Under the federal Protecting Tenants at Foreclosure Act and 735 ILCS 5/9-207.5, the new owner can end a bona fide lease only at the end of the term with at least 90 days' written notice, or with at least 90 days' written notice for a month-to-month or week-to-week lease. A buyer who will live in the home can end the lease early but must still give 90 days. Section 8 voucher holders keep their lease and housing assistance contract. See our [renter's notice after foreclosure](/notices/tenant-notice-after-foreclosure/) page.

   Pub. L. 111-22 § 702 (12 U.S.C. § 5220 note); 42 U.S.C. § 1437f(o)(7); 735 ILCS 5/9-207.5

2. Who has a bona fide lease in Illinois

   Depends on when the lease was signed

   Your lease counts if you are not the owner or the owner's child, spouse or parent, the deal was at arm's length, and the rent is not far below market unless it is subsidized. A lease signed before the foreclosure case was filed counts in full; one signed after the case was filed but before the sale counts for up to 1 year. An oral lease counts as month to month unless you prove a longer term, and a lease signed after the sale but before confirmation counts as month to month.

   735 ILCS 5/15-1224

3. Notice from the new owner, and who to pay

   Within 21 days after the court confirms the sale

   The new owner must give known occupants a written notice by hand, by leaving it with someone 13 or older at the home, or by first-class mail, and must post one on each unit's main entrance. It must say the home was foreclosed, give a contact for concerns and repairs, give the case name and number, explain how to pay future rent, and say "This is NOT a notice to vacate the premises." Pay rent as that notice directs and keep receipts.

   735 ILCS 5/15-1508.5(a), (b), (e)

4. No notice, no rent demand

   Until the notice is served

   A new owner that has not served the notice cannot collect rent from you or end your tenancy for not paying it until it does. If you already paid the current period's rent to your old landlord or to whoever was managing the home, the new owner cannot hold you liable for that period or evict you over it.

   735 ILCS 5/15-1508.5(d)

5. Only a court can remove you

   Not before 30 days after confirmation

   A foreclosure sale does not end your lease automatically, and a bona fide lease can be ended only through an eviction case under the Eviction Act. The new owner cannot start an eviction case against occupants who were not parties to the foreclosure until 30 days after the court confirms the sale. Answer any eviction papers and contact Illinois Legal Aid Online or the Illinois Attorney General's Homeowner Helpline right away.

   735 ILCS 5/15-1701(d), (e), (i)

6. Occupants without a bona fide lease: up to 120 days, and a sealed record

   Petition up to 90 days after confirmation; hearing at least 21 days after service

   If you live there without a bona fide lease, the new owner can ask the foreclosure judge for an eviction order through a supplemental petition. If you are current on rent, were never told in writing where to pay, or tried in good faith to pay, the order must let you stay 120 days after proper notice of the hearing or to the end of your rental term, whichever is shorter, but at least 30 days. Court records of these cases, and of evictions of tenants who would still have a right to stay but for the foreclosure, must be sealed.

   735 ILCS 5/15-1701(h)

7. Your security deposit

   Notice posted within 21 days after the deposit is handed over

   If your old landlord turns your deposit over to the foreclosure buyer, the buyer becomes liable for it, plus any unpaid interest, and must post a notice on your door within 21 days saying it has your deposit. If the deposit was not handed over, ask your old landlord in writing for it. When you move out, a landlord who keeps any part for damage must send an itemized statement within 30 days, or return the full deposit within 45 days.

   765 ILCS 710/1, 1.1, 1.2

Common questions in Illinois