Profile picture for user389572

Condo Foreclosure

My roomate and I are looking to rent a condo unit in Illinois.  We were shown the unit by a member of the Condo board and told that this unit had been in foreclosure, but if we wanted to rent we shouldn't worry because there has been no activity on this unit by the bank and it has been over a year (March 4,2011). We asked what would happen if the bank decided to take over the apartment and we were told the bank would have to ask us first about moving out but they couldn't force us. Then we were told we would be given 45 days notice to move out.  We were also told if we were forced to move we would be able to pay the same amount as our current rent at a new place.  We have a copy of the lease (unsigned) but then received a lease rider that mentions Section 111 and 111.1 of the Illinois Forcible Entry and Detainer Act and says that if the Association were to lose the authority to lease the unit, then our rights would be terminated and we would waive any claims in contract against the Association as a result of the loss.  We would like to know our rights in accordance to the foreclosure/bank process and if we need to sign that rider to lease/what that would mean? We really like the condo but are worried that the bank would decide to take action shortly after our move and we would be forced to move right back out.  Can anyone offer some advice on what we should do? Thank you!

  • June 15 2012 - Chicago
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Answers (6)

IF the bank offers you 'cash for keys' they will want you out within approximately 3 weeks. But there is no guarantee they will offer you the money. And if you lack the lease, they may be inclined to just evict you.
  • June 15 2012
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Profile picture for Matt Laricy
I dont think this person knows what they are talking about. The bank can make you move out, and I am not sure how the association can even rent the condo out to you at this point. Once the bank takes the property back and puts it on the market, they would probably give you 30 days notice. It seems like it could be very messy and I wouldnt take the chance. As to offering you compensation, I doubt it.
  • June 15 2012
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Profile picture for user389572
Thanks for the input Philip-- 

That's another question I have about the bank- I have been doing some research and have been reading different stories from people who went through the same thing. Does the bank always give tenants notice to move in advance? Do you know the time frame they usually give? In that instance I would feel a little more comfortable with 3 months as apposed to one month to find a new place..  I have also been reading about the bank offering compensation to tenants to move out faster.  Is this true?
  • June 15 2012
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That member of the condo board has no clue what they are talking about! I do foreclosures and work with the bank to get rid of tenants who are in the units once the bank takes over. It's too complicated to go into here, but either speak with a lawyer to get real legal advice for a fee or take your chances. I would find another rental because the short answer is that the bank can force you out within 3 months regardless of whether you have a lease or are month to month.The rental market is a bit tight in many areas, but if you would like some help let me know. There is no cost to you.
  • June 15 2012
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Profile picture for user389572
Thank you for the response!
Yes, I have just  been reading about the Dodd-Frank Act- Protecting Tenants Against Foreclosure Act 
http://nhlp.org/files/PTFA-as-amended.pdf 

And there was actually an amendment made that says we still have rights to either stay in the unit or have 90 days minimum notice by the bank about moving- if the property is already in foreclosure (explained here: http://www.weltman.com/media/files/pdf/ServicingManagementMag101210.pdf


I believe there was a mention of the lender giving permission to the Condo Association to rent out the unit in the lease- I do not have that on me right now though I would have to double check

  • June 15 2012
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Profile picture for wetdawgs
Sounds dicey.   I would leave this one behind and look elsewhere. 

There are federal laws protecting people who are renting when a property goes into foreclosure, but at this point the property is already in foreclosure.  Does the condo association have written authority from the lender to rent it out?  
  • June 15 2012
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