Page 16 - John Hundley 2009

(4) provide the name, address, and phone number of an
individual or entity to contact with concerns about the unit; (5)
include the name, number and court of the case where the order
confirming sale has been entered; and (6) include substantially the
following language, “This is NOT a notice to vacate the premises.
You may wish to contact a lawyer or your local legal aid or
housing counseling agency to discuss any rights that you may
have.” The notice must be served by delivery to the occupant, or
by leaving it with a person 13 years of age or older residing in or in
possession of the unit, or by sending it by first-class mail.
Moreover, the New Owner is required within 21 days of confirmation of the sale to post a similar
notice on the primary entrance of each dwelling unit.
A New Owner that fails to comply with those requirements may not collect rent from a
known occupant, or terminate the tenancy for non-payment of such rent, until the required
notice has been served. An occupant who previously paid rent for the current period to the prior
owner may not be held liable for that rent by the New Owner.

The act also provides that in a foreclosure where the mortgagee is in possession
and the occupant is current on rent or has made a good-faith effort to make rental
payments, an order of possession entered on a supplemental petition must allow the
occupant to retain possession (1) for 120 days after notice of the hearing, or (2)
through duration of the lease, whichever is shorter, provided that if the lease
duration is less than 30 days from the date of the order, the occupant may retain
possession for 30 days from the date of the order. A New Owner that asserts that
an occupant is not current in rent must file an affidavit to that effect in the supplemental proceeding.

Receivers must accept rent payments from occupants, third parties or rental assistance programs.
Receivers may not charge rent above that the occupant had been paying without leave of court, and
a motion for an increase must show that it is necessary to preserve the property. Occupants affected
by such a motion must receive advance notice thereof unless they have agreed to the increase.

Several subtle aspects if this act should be noted. First, by defining “dwelling
unit” broadly, it apparently intends to protect not only individuals who are parties to
leases or mortgages, but anyone occupying the unit. Second, the act does not abro-
gate any right a New Owner may have to possession, or to maintain a proceeding
against an occupant for possession, under the forcible entry act or under other
sections of the IMFL. Third, if an occupant is named as a party to the foreclosure at
the outset, the act is unclear as to whether the notice requirements still must be met.

P.A. 96-0060. This act, which became effective July 23, extends the time in which a
landlord may enforce a judgment for possession under the forcible entry statute from 90 days to 120
days. The 120-day deadline, like the former 90-day deadline, may be extended by the court.
John\Sharp Thinking\#23.doc
●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●
THE SHARP LAW FIRM, P.C.

1115 Harrison, P.O. Box 906, Mt. Vernon, IL 62864 • Telephone 618-242-0246 • Facsimile 618-242-1170

Business Transactions • Litigation • Financial Law • Problem Finances • Real Estate • Corporate • Commercial Disputes • Creditors’ Rights •
Arbitration • White Collar Criminal Defense • Employment Matters • Estate Planning • Probate

Terry Sharp: law@lotsharp.com; John T. Hundley: Jhundley@lotsharp.com; David J. Grindle: Dgrindle@lotsharp.com;
Mandy Combs: Mcombs@lotsharp.com; Real Estate Closing and Title Services, see www.sharptitleservices.com.

Advertising Material