Beginning September 24, 2013, a new ordinance in the City of Chicago provides mandatory relocation assistance for tenants who remain in foreclosed properties. Foreclosing lenders or third party purchasers must now follow stringent steps prior to relocating or evicting tenants who reside in foreclosed properties. This ordinance is a requirement for all properties in Chicago and all lenders must comply.
The ordinance applies to properties where a successful bidder at the foreclosure sale or a mortgagee (lender) who retakes title through a deed in lieu of foreclosure or consent foreclosure, for any building that contains one or more dwelling units, including single family homes and condos, which are used a rental property must now follow the new notice requirements upon taking ownership.