While foreclosures continue to plague many urban areas across America, Illinois Governor Pat Quinn recently signed a bill that will protect renters from being forced out of their homes if those properties go into foreclosure. According to DSNews.com, the new law, Senate Bill 56 was sponsored by Senator Jacqueline Collins and Representative Kelly Cassidy, both of Chicago. It will take effect in just under ninety days now. This bill will increase the protection associated with the Illinois Protecting Tenants in Foreclosure Act (PTFA), a law that’s set to expire in 2014.
Do you have questions about your rights during the foreclosure process? The experienced attorneys at the Emerson Law Firm can answer your questions today.
Protecting Tenants in Foreclosure Act
The Protecting Tenants in Foreclosure Act originally went into effect in May 2009. The Act is actually part of the Helping Families Save Their Homes Act of 2009. It had been set to expire at the end of 2012, but the Dodd-Frank Wall Street Reform and Consumer Protection Act extended the act until the end of 2014.
Under the act, the purchaser of any foreclosed property has to provide tenants with at least 90 days notice before they can force those renters out of the property. And further, unless certain conditions are met, the purchaser of a foreclosed home has to allow a tenant to run out the course of her lease on the property.
Although the PTFA won’t expire until the end of 2014, that expiration date might arrive before the foreclosure crisis has truly come to an end. The new Illinois law will continue protecting Illinois families who rent homes that end up in foreclosure.
Renters Need Adequate Time to Make a Safe Move
According to the news release about the new bill from the Illinois Government News Network (IGNN), renters who inhabit foreclosed property need to have adequate time to make a safe move, and the new bill affords them just that.
Governor Quinn spoke about the bill, remarking that “the foreclosure crisis has been devastating to homeowners as well as many families living in rental homes who are at risk of losing their home due to no fault of their own.” Indeed, families who rent may run nearly as high a risk as homeowners who have difficulty making their monthly mortgage payments. That’s where the new law comes in. According to Governor Quinn, “as families in our communities continue to recover from the worst recession since the Great Depression, this law will ensure renters are protected from sudden forced moves that can be costly and disruptive to their lives.”
In fact, statistics related to Senate Bill 56 reveal that about forty percent of families who are negatively affected by foreclosure are actually renters who have no idea that their landlord isn’t making the monthly mortgage payments on their home.
Speaking about the bill, Senator Collins indicated that “a consistent commitment to housing rights protects tenants as well as homeowners.” Describing the impetus for sponsoring the bill, she said that “no one should be evicted on short notice and lose access to a safe place to live because of the financial circumstances of the landlord.”
In short, the Senate Bill 56 will ensure that renters are protected from foreclosure beyond the end of 2014. If you have questions about the impact of the new bill or if you’re having difficulty making your monthly mortgage payments, an experienced foreclosure defense attorney can help. Contact us today to discuss your case.
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