Property owner misses mortgage payments
Complaint filed (foreclosure lawsuit filed against owner); tenants are still required to pay their rent to the owner (or to a receiver if one is appointed by the court).
[The lender may request that the court appoint a receiver to act a property manager for the property at any point in the foreclosure case – this would mean that even though the owner still has title to the building, another person or company is managing the property for the court].
Owner served with foreclosure case court papers.
[These court papers will give the owner information about court dates and responding to the foreclosure case. The owner should consider calling the Cook County Mediation Program at 877-895-2444 or otherwise seek legal advice]
The Owner’s Answer to the Complaint is due (30 days after the sheriff serves the owner with court papers).
Judgment of Foreclosure Entered (court order that says the owner is foreclosed)
Owner has the right to restate and/or redeem the property.
[This period usually lasts at least 3 months. The foreclosure law has specific rules about how much owners need to pay during these periods to save their homes, depending on timing. Owners should seek legal advice if they think that they can reinstate or redeem].
Property is sold at foreclosure sale (called a judicial sale)
[Before the property is sold, the lender must give public notice of sale]
Court confirms the foreclosure sale. Title transferred. Eviction order may be entered against the owner.
[The Sheriff may not evict the owner until 30 days after the eviction order is entered against the owner. For the most part, tenants are not included in this eviction order and the sheriff may not evict tenants using this order. When title transfers, the new owner will then be able to start collecting rent from tenants (if the new owner otherwise follows IL law)]
Although technically tenants may have an eviction order entered against them as a part of the foreclosure case, most of the time the lender will wait and file a separate eviction case against tenants in a different court room after the foreclosure case is completed (if the lender wants tenants to move out). Tenants have a number of rights at foreclosure and should seek legal advice if they are at risk of eviction.