Illinois Lawyer Outlined Rules for Tenants of Repo Homes
Tuesday, April 21st, 2009Karen Hsu, a lawyer at Land of Lincoln Legal Assistance Foundation, has provided details on foreclosure regulations governing tenants of repo homes in Illinois.
Hsu said that the foreclosure process covering renters of repo homes in Illinois starts with the filing of a complaint. Summons are served to distressed owners of repo homes, and then a judge will issue a foreclosure ruling and order of property sale.
After being served and having received the summons, owners of repo homes are given 90 days to make their accounts current. After the reinstatement period comes the redemption stage in that repo homes owners are required to pay the whole loan principal, fees, costs and interest seven months after they received the summons or a quarter after the issuance of foreclosure judgments.
The sheriff’s sale of Illinois repo homes will be conducted after the redemption time period has lapsed. A court hearing will be held to confirm the foreclosure property sale.
The proceedings for Illinois foreclosures affect tenants in several ways. Sometimes they are named in foreclosure complaints and served with notice. In the event that this happened, the buyer can make a claim for the foreclosed property a month after the hearing for confirmation of the sale.
Meanwhile, Hsu explained that sometimes tenants are not named in foreclosure complaints. If this is the case, the complainant may file a supplementary petition for possession. The petition can be filed during the foreclosure proceeding, up to 3 months after the order of sale confirmation.
In addition, courts are required to conduct hearings on petitions not more than 21 days starting on the day that the notice of the foreclosure hearing is served.
Meanwhile, Illinois foreclosure regulations protect tenants who have not violated any law and remain current on their rent payments. Tenants who are good payers have the option to remain on their rented repo homes for 4 months after the notice of the supplemental petition hearing or until the lease expires, whichever is shorter.
In cases that tenants are not diligent in paying their monthly rents, they could be forced to vacate the premises immediately.
On the other hand, if the buyer of the foreclosed property filed a proceeding of forced entry and detainer against the tenant, he can seek ownership of the house a month after the order of the confirmation of the sale.
