Tenants in Foreclosure Intervention Project

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Naik Swaitz
Legal Biiectoi

Patiicia Fion, NSW
Builuings Piogiam
Auministiatoi
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Tenants in Foieclosuie Inteivention Pioject 2u1u Repoit
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Iune 2u11
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LCBB woulu like to thank Rachel Blake, who uevelopeu the uatabase vital to TFIP's
ieseaich effoits, anu pioviueu technical assistance anu ongoing suppoit thioughout
the cieation of this iepoit.
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Executive Summaiy................................... i
Case vignettes...................................... iii
I. Intiouuction.................................. 1
II. Nethouology.................................... 2
III. Foieclosuies on Apaitment Builuings in 2uu9 anu 2u1u............ 4
a. Impact by Community Aiea......................... 6
b. Impact by Bank....................................... 1u
Iv. 2u1u Foieclosuie Sales: Tiacking 2uu9 Filings.................. 11

v. Community Aiea Rental Bousing Risk Assessment............... 12
vI. Continuing Tienu: Tenants Face Constiuctive Evictions
by Banks anu 0thei Successois-in-Inteiest Bue to Foieclosuie...... 14

a. Foieclosuie in Illinois: Legal Backgiounu....................... 14
b. Bank Piactices: Noncompliance with Foieclosuie Laws........... 16

c. Constiuctive Eviction................................ 16
vII. Reviewing Recent Foieclosuie Finuings: Bispiopoitionate Impact of
Foieclosuies by RaceEthnicity................................ 18

vIII. Recommenuations........................................... 2u
977"#:(,"&'
Illegal Notices Receiveu by Chicago Tenants in Foiecloseu Builuings........ A

Complete Chicago Community Aiea Rental Bousing Risk Assessment......... B

"Tenants in Foieclosuie Inteivention Pioject" Biochuie (English).......... C
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Tenants in Foieclosuie Inteivention Pioject 2u1u Repoit
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The Lawyeis' Committee foi Bettei Bousing's 2uu9 Foieclosuie Repoit aleiteu tenant auvocates to
the uispiopoitionate impact of foieclosuie on ienteis anu pieuicteu that, paiticulaily in uiban
aieas with laige iental populations, the impact of foieclosuie on tenants has the potential to
uestabilize entiie communities. The 2u1u Repoit ievisits these pieuictions anu finus that Chicago's
low to moueiate income Community Aieas, paiticulaily Afiican Ameiican anu BispanicLatino
communities, aie at gieat iisk of uestabilization uue to the numbei anu peicentage of iental units
eithei in foieclosuie, oi bank oi investoi-owneu.

In auuition to ieviewing Apaitment Builuing foieclosuies anu units impacteu, the 2u1u LCBB
Repoit iuentifies Community Aieas most acutely impacteu by foieclosuie. LCBB also examines the
wiuespieau violations of tenants' iights that have come to LCBB's attention thiough uiiect woik
with Chicago tenants. Although theie exist compiehensive city, state, anu feueial laws piotecting
tenants in foieclosuie, LCBB has iepeateuly been aleiteu to the calculateu actions employeu by
"successois in inteiest", typically banks anu theii agents, to avoiu compliance with these laws.

Successois in inteiest, incluuing banks, ioutinely attempt to iemove tenants thiough "constiuctive
eviction." In the Repoit, LCBB uefines "constiuctive evictions" moie bioauly than the legal
uefinition to incluue not only occuiiences when a successoi lanuloiu uenies a tenant the iight of
possession of theii unit thiough illegal lockouts, boaiu-ups, anu lack of utility maintenance, but also
instances wheie a successoi lanuloiu, thiough misleauing, haiassing oi thieatening
communications, causes the tenant to piematuiely vacate his oi hei apaitment. Lenueis, anu theii
agents anu attoineys, insteau of acknowleuging the ielevant laws uesigneu to piotect tenants,
willfully ignoie these laws anu insteau have institutionalizeu in theii piactices the wholesale
violation of tenants' iights in oiuei to vacate tenants fiom foiecloseu builuings.

/'01'023))
o In 2u1u, S,9u4 Apaitment Builuings went into foieclosuie within the City: these piopeities
contain appioximately 17,467 units:
o 0n aveiage, 12S Apaitment Builuings went into foieclosuie pei week in 2u1u:
o Thioughout 2uu9 anu 2u1u, 12,SS4 Chicago Apaitment Builuings went into foieclosuie
affecting appioximately S7,726 units: the numbei of units in foieclosuie ovei the past two
yeais is gieatei than all housing units in Austin, one of the laigest Community Aieas in
Chicago:
o The same Community Aieas most impacteu by foieclosuie in 2uu9 weie again inunuateu
with high iates of Apaitment Builuing foieclosuie filings in 2u1u. This compounueu buiuen is
expecteu to encumbei the community iesouices of these aieas, leauing to a loss of available
iental housing anu to fuithei uisinvestment:

i

o The Community Aieas with at least 1u% of theii available iental units impacteu by
foieclosuie fiom Ianuaiy of 2uu9 thiough Becembei of 2u1u aie almost entiiely situateu on
the south anu west siues of Chicago, foiming a viitual "foieclosuie belt" acioss the City:
o Community Aieas that aie pieuominantly Afiican Ameiican anu BispanicLatino face gieatei
iisks to iental housing stability: 16 of the 2S Community Aieas with the gieatest iisk to iental
housing stability aie composeu of populations that aie less than S% Caucasian.
)
456%&)789:)
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Foi ovei Su yeais, Lawyeis' Committee foi Bettei Bousing (LCBB) has seiveu Chicago as a non-
piofit public inteiest law fiim specializing in housing law anu policy. Founueu in 198u by a small
gioup of lawyeis conceineu about ueteiioiating apaitment builuings anu housing abanuonment in
the Rogeis Paik neighboihoou, LCBB now seives all of Chicago. LCBB cuiiently has five legal
piogiams anu suppoitive seivices that focus on seiving tenants in the piivate iental maiket wheie
ovei 7u% of Chicago's low-income families iesiue. Thioughout its histoiy, LCBB has auvocateu on
behalf of tenants anu has maue significant contiibutions to tenants' iights anu affoiuable housing
initiatives thiough ieseaich, stuuies, anu policy iepoits)to effect change in public policy anu local
anu state law.)))
)
The Tenants in Foieclosuie Inteivention Pioject (TFIP) auuiesses the pioblem of foieclosuie as it
affects tenants, who aie uniecognizeu anu unueiseiveu victims in the cuiient economic anu
foieclosuie ciisis. TFIP pioviues tenants with legal iepiesentation, infoims tenants of theii iights
anu iesponsibilities uuiing foieclosuie, anu aius in the seaich foi new housing when necessaiy.
TFIP also pioviues community oiganizations anu tenant auvocates with tiaining on the foieclosuie
piocess anu tenants' iights uuiing foieclosuie, along with an eaily waining system uesigneu to
iuentify, map, anu shaie key pieces of infoimation about iecently fileu foieclosuies on multi-unit
builuings. TFIP is the only piogiam in the Chicago aiea that focuses solely on the issues facing
tenants in foieclosuie.

Awaieness of foieclosuie's impact on tenants anu communities is vital if piogiess is to be maue in
the aieas of affoiuable housing anu community ievitalization. The Lawyeis' Committee foi Bettei
Bousing woiks tiielessly to uisseminate foieclosuie infoimation in oiuei to biing about a change in
public peiception anu action on the pait of policy makeis.

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veina lives in a 4-unit apaitment builuing in South
Lawnuale with hei uaughtei anu thiee young
gianuchiluien, incluuing two touuleis. A bank took title to
the builuing at a foieclosuie sale, anu on 0ctobei 1, 2u1u
the sale was appioveu anu confiimeu by a foieclosuie
couit. veina's lanuloiu neglecteu to infoim hei of the
impenuing foieclosuie, as iequiieu unuei Chicago law anu
she uiu not ieceive notice fiom the bank iegaiuing the
change in owneiship upon completion of the foieclosuie
as iequiieu unuei Illinois law. Bue to this lack of
notification, veina continueu to pay the foimei ownei ient
even aftei he hau lost the builuing anu the iight to collect
ient. Fuithei, she uiu not know whom to contact fiom the
bank (now legally the new lanuloiu) when she began to
expeiience seveie pioblems with hei unit.'
veina heaiu iumois that the builuing was in foieclosuie
fiom hei neighbois, anu in eaily 0ctobei she investigateu
the foieclosuie action anu ueciueu to contact the bank's
attoineys to inquiie about the foieclosuie case anu the
impact this woulu have on hei lease. Staff at the attoiney's
office infoimeu hei that hei lanuloiu hau lost the builuing
anu that all tenants hau to move by the enu of the month,
oi they woulu be evicteu. Noving an entiie householu in
such a shoit timefiame with no piioi notice is simply not
feasible, anu because of the piotections offeieu by state
anu feueial law, it is also not necessaiy.
At the time veina leaineu of the foieclosuie anu change in
owneiship she was cuiient on hei ient anu hau a lease
valiu thiough Iuly of 2u11. Puisuant to feueial law, the
teims of veina's lease suivive the foieclosuie. In an effoit
to maintain hei tenancy, veina pioviueu hei lease to the
bank's attoineys. Bowevei, the bank has nevei contacteu
veina to uiscuss hei iight to live out the lease teim, anu
only thiough the auvocacy of LCBB uiu the bank cease its
thieats to evict veina.
Not long aftei the bank took owneiship of the builuing, the
fuinace stoppeu woiking, even though veina paiu foi hei
own heat anu cooking gas anu was cuiient on these

payments. Theieaftei, fiom 0ctobei 2u1u to Febiuaiy
2u11, veina anu hei family hau to use the oven to geneiate
heat a uangeious piactice that put the safety of hei
young gianuchiluien in jeopaiuy. Because veina was not
pioviueu with any infoimation iegaiuing new builuing
management, she again contacteu the bank's attoineys,
who tolu hei that the bank was not iesponsible foi the
builuing's conuition. Bowevei, banks aie "successoi
lanuloius" unuei Chicago law anu as owneis anu
lanuloius, have a uuty to maintain builuings in compliance
with builuing coues.
Foi months veina uemanueu that hei heat be iestoieu anu
also contacteu the City of Chicago's S11 City Seivices. 0nly
aftei the City fileu a complaint against the bank was the
fuinace iepaiieu. Bespite that small victoiy, veina uoes
not wish to iemain in the builuing uue to the lack of
management anu significant maintenance issues. veina
now plans on leaving Chicago altogethei, in no small pait
uue to the stiess hei family enuuieu while living thiough
the wintei without auequate heat, anu the toll this has
taken on hei health.
The bank offeieu veina a "cash foi keys" ueal. Such offeis
geneially iequiie tenants to waive any anu all claims they
may have against the bank. LCBB has iecommenueu that
veina not sign a geneial waivei because of hei cuiient
health issues, incluuing asthma pioblems, which have been
exaceibateu by the bank's failuie to maintain the builuing.
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Boug lives in a 2-flat in Wooulawn that, aftei foieclosuie,
was solu to a piivate ieal estate holuing company. Boug's
builuing hau been in foieclosuie since Febiuaiy of 2uu9,
but Boug nevei ieceiveu notice fiom his foimei lanuloiu
as iequiieu unuei Chicago law. Ten uays befoie losing the
builuing in foieclosuie, his lanuloiu offeieu Boug a new
lease that extenueu his tenancy to Nay of 2u11 anu
iequiieu the payment of an auuitional $2,uuu.uu secuiity
ueposit. Boug uiu not leain of the foieclosuie until Iune of
2u1u when he began seeing notices fiom uiffeient entities
posteu on the builuing.
CASE VI GNETTES

iii
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Boug fiist saw a posteu notice to "occupants" that
management hau changeu anu pioviuing contact
infoimation foi a ieal estate agent baseu out of Califoinia.
When Boug calleu the numbei pioviueu, the agent saiu he
was not hanuling Boug's builuing. Latei that month, Boug
ieceiveu notice fiom a law fiim stating that Boug hau to
move within 9u uays oi an eviction action woulu be fileu
against him. This notice was sent puisuant to Illinois anu
feueial law, which pioviue that tenants in foieclosuie
shoulu ieceive a minimum of 9u uays notice befoie they
have to move. Bowevei, the notice Boug ieceiveu faileu to
acknowleuge that unuei feueial law, tenants with valiu
leases aie entitleu to live out theii lease teim. Because
Boug hau a valiu lease thiough Nay 1, 2u11, he faxeu his
lease to the law fiim in the hopes that effoits to evict him
woulu cease.
Staiting in Septembei of 2u1u, multiple inuiviuuals
claiming to have owneiship of the builuing oi a iight to
collect ient began haiassing Boug foi ient payments. 0ne
piopeity management company was paiticulaily
aggiessive in its uemanus foi ient, anu also insisteu that
Boug pay moie ient than was iequiieu unuei his lease.
Boug hau uutifully been saving his ient since his lanuloiu
lost possession of the builuing but was waiy of paying ient
without pioof of owneiship, foi feai of being caught up in a
scam. Theiefoie, Boug uemanueu that iepiesentatives
fiom this management company pioviue him with
veiification of theii owneiship oi management of his
builuing befoie he woulu begin to pay them ient.
The management company iefuseu to pioviue Boug with
uocumentation pioving that they weie agents hiieu by the
titleholuei of iecoiu, anu insteau fileu an eviction action
against him in Novembei. In Becembei of 2u1u, Boug
encounteieu an intiuuei in his apaitment, who infoimeu
Boug that he was sent by the piopeity management
company. When Boug uemanueu moie infoimation, the
intiuuei fleu the apaitment. Boug assesseu his apaitment
anu founu that some valuable possessions weie missing.
Although he fileu a police iepoit, the intiuuei was nevei
iuentifieu.
Thiough the legal inteivention of LCBB the management
company has since been veiifieu anu has agieeu that Boug
may iemain in his apaitment foi the uuiation of his lease.
Boug has ueciueu to move, anu LCBB was able to get his
back ient waiveu in lieu of the extia secuiity ueposit he
hau given his foimei lanuloiu.
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Kay (not hei ieal name) liveu in a S-flat in East uaifielu
Paik that went into foieclosuie. Kay nevei ieceiveu notice
fiom hei lanuloiu at the beginning of the foieclosuie as
iequiieu unuei the Chicago law anu she also nevei
ieceiveu notice fiom the bank at the enu of the foieclosuie
about the change in owneiship as iequiieu unuei Illinois
law. Insteau, Kay leaineu of the foieclosuie aftei an agent
foi a national ieal estate asset management company
appioacheu hei with a cash-foi-keys ueal anu infoimeu
hei that all tenants hau to be out of the builuing in one
month. At that time, Kay hau a lease which was valiu foi
anothei 6 months anu she hau a $1,9uu.uu secuiity ueposit
with hei foimei lanuloiu.
Kay was not awaie of hei lawful iight to iemain on the
piopeity thiough the iemainuei of hei lease puisuant to
feueial law, noi was she awaie of the new ownei's in
this case the bank's obligation to ietuin hei secuiity
ueposit puisuant to Chicago law. Fuithei, not only uiu the
agent iefuse to acknowleuge any of Kay's iights as a lawful
tenant in foieclosuie, he misinfoimeu Kay by stating that
she hau to leave within Su uays oi that she woulu be
foicibly evicteu. Because Kay believeu that she hau to
move, a cash-foi-keys ueal sounueu appealing.
0n August 27, 2u1u, Kay signeu an "0ccupant Nove-0ut
Agieement anu Release" foim stating that if Kay moveu on
oi befoie 0ctobei 1, 2u1u she woulu ieceive $2,4Su.uu in
ielocation assistance. As is typical in these agieements,
Kay waiveu hei iight to live out hei lease, anu ieleaseu the
bank anu its agents fiom any anu all liability, incluuing the
ietuin of the secuiity ueposit. Kay waiveu these iights
unknowingly, because she uiu not unueistanu hei iight to
continue hei tenancy. As is also typical in these
agieements, the agent uoes not pay the tenant until aftei
the move, anu if the tenant is unable to move in time, oi if
the ieal estate agent ueteimines that the tenant has
otheiwise not complieu with the agieement, the tenant
ieceives no money.
Kay cleaneu anu completely moveu out of hei unit piioi to
the move out uate, but when she ietuineu hei keys, the
agent infoimeu hei that the bank woulu not appiove the
agieement because Kay hau taken hei iefiigeiatoi anu
stove with hei fiom the apaitment. Kay explaineu that
these weie hei appliances that she puichaseu piioi to
moving into the unit, but the agent still iefuseu to pay hei
the agieeu-upon ielocation assistance. LCBB contacteu the
local agent's office on behalf of Kay auvising the asset
management company that Kay anu all othei tenants in the
builuing ienteu apaitments without a iefiigeiatoi anu
stove, anu that Kay coulu piove that she biought hei own
appliances into the apaitment. The agent's office still took
the position that appliances aie "fixtuies" unuei the Nove
0ut Agieement, even if they once belongeu to the tenant,
anu iefuseu to honoi the agieement.
Without infoimation on hei tenancy iights, Kay was foiceu
to make a huiiieu uecision, anu in the enu nevei ieceiveu
the ielocation assistance she was in neeu of. LCBB is
consiueiing litigation against the ieal estate assets
management company anu its local agent on behalf of Kay
anu otheis who weie coeiceu out of theii tenancies anu
not paiu theii ielocation assistance by this agent.
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In the Albany Paik neighboihoou on the noithwest siue of
Chicago, seven families of ienteis have been living in a
foiecloseu builuing foi ovei thiee yeais in a fight to save
the place they have calleu home foi up to 2u yeais. The
Spauluing Builuing, as it has come to be known (aftei the
stieet it is locateu on), has become a mouel foi success in
pieventing the haimful impact the foieclosuie ciisis has
on ienteis. In Nay of 2uu8 the tenants became awaie that
the ownei of theii builuing hau falsely piesenteu the units
as newly iehabbeu conuos, secuieu almost $2 million in
moitgages fiom 7 uiffeient banks, anu fleu the countiy.
The tenants weie then left at the meicy of multiple lenueis
as the units weie foiecloseu on, one by one.
Thiee yeais latei, all of the tenants aie still paying ient in
theii apaitments anu aie in the piocess of finuing a new
ownei to keep the builuing as long-teim affoiuable
housing in a neighboihoou which uespeiately neeus iental
housing. The success of this stoiy came about thiough
LCBB's collaboiation with the Albany Paik Neighboihoou
Council (APNC), a giassioots community oiganization on
the noithwest siue of Chicago. Thiough the effoits of
APNC, the tenants hau uevelopeu an oiganizing stiategy in
oiuei to stay in theii homes.
Thiough LCBB's legal iepiesentation of the tenants, a
builuing couit juuge iuleu that the builuing shoulu not be
vacateu, as tenants weie innocent victims of the lanuloiu's
fiauuulent activities. Bowevei, in August of 2uu8, sheiiff
ueputies came to the builuing, thieatening to evict one of
the families fiom theii home uue to a juugment in
foieclosuie couit. The family tiieu to explain that they
shoulu not be evicteu since the foieclosuie juuge's iuling
was uiiecteu at the builuing's ownei anu not tenants. Even
aftei pioviuing this explanation they weie tolu that they
woulu have to leave the apaitment when the sheiiff
ietuineu the following week.
Following the inciuent, the tenants of the Spauluing
Builuing anu APNC oiganizeu an action on Cook County
Sheiiff Tom Bait, calling on his office to holu off on
executing any eviction oiueis on the builuing because
tenants hau nothing to uo with the foieclosuie cases. As a
iesult of this action Sheiiff Bait placeu a moiatoiium on all
evictions of ienteis living in foiecloseu piopeities in Cook
County until, with the consultation of LCBB, APNC, anu
othei tenant auvocacy gioups, pioceuuies weie put in
place to insuie that innocent tenants living in foiecloseu
piopeities weie not evicteu illegally anu without piopei
notice.
This victoiy hau national implications, as cities anu
counties acioss the countiy have lookeu at enacting
similai policies. Auuitionally, APNC along with othei
tenant gioups anu community-baseu oiganizations
successfully woikeu with the City of Chicago to suppoit
changes to the law allowing the city to ue-conveit faileu oi
uistiesseu conuominiums, such as the Spauluing Builuing,
back to iental piopeities.

LCBB, APNC, the Community Investment Coipoiation
(which was appointeu ieceivei of the builuing anu has
ensuieu that the builuing was well-maintaineu thioughout
the foieclosuie piocess), anu the City of Chicago's
Tioubleu Builuings Initiative aie woiking togethei to
pieseive all of the units until the builuing can be solu to a
new ownei who will maintain the builuing as affoiuable
iental housing. APNC's oiganizing, in paiticulai, cieateu
public attention foi this cause, which helpeu soliuify this
pioject's success, in that the banks acteu moie iesponsibly
in maintaining the pieexisting tenancies. It is anticipateu
that by the fall of 2u11, the builuing will be fully ue-
conveiteu into iental apaitments, anu the builuing will be
auveitiseu foi sale to a qualifieu uevelopei that agiees to
keep ients at a fixeu affoiuable iate.
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!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
June 2011 www.lcbh.org
1
' /8 /9!6:;<=!/:9>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>'
The Lawyeis' Committee foi Bettei Bousing's (LCBB) Tenants in Foieclosuie Inteivention
Pioject (TFIP) has monitoieu anu iepoiteu on Apaitment Builuing
1
foieclosuie filings in
Chicago ovei the past two yeais
2
. !?+*.@?'(%&'+"&"$+,?A'B=CD'?$&'E*.#F'%?$%'G*+"'+"#%$-'
.#(%&'%?$#'*H#"+I*,,.7("F'.#(%&'(#'=?(,$@*'$+"'(G7$,%"F'JK'E*+",-*&.+"'E(-(#@&8'
).+%?"+G*+"A'=?(,$@*L&'-*H'%*'G*F"+$%"'(#,*G"'=*GG.#(%K'M+"$&
N
A'7$+%(,.-$+-K'
ME+(,$#'MG"+(,$#'$#F'D(&7$#(,OB$%(#*',*GG.#(%("&A'$+"'$%'@+"$%'+(&P'*E'F"&%$J(-(Q$%(*#'
F."'%*'%?"'#.GJ"+'$#F'7"+,"#%$@"'*E'+"#%$-'.#(%&'"(%?"+'(#'E*+",-*&.+"A'*+'J$#P'*+'
(#0"&%*+'*H#"F. Not only aie Chicago's Afiican Ameiican anu BispanicLatino communities
losing significant numbeis of iental units thiough builuing uisinvestment anu abanuonment
uue to foieclosuie, but tenants in these neighboihoous aie commonly confionteu with illegal
activities peipetiateu by successoi lanuloius (often banks) anu theii agents. Such illegal
acts incluuing the iefusal to honoi lease teims, failuie to maintain essential builuing
seivices, anu thieatening tenants with iemoval by foice aie wiuespieau, anu violate tenant
piotections unuei feueial, state, anu municipal laws.

In Apiil of last yeai, LCBB ieleaseu its 2uu9 TFIP Repoit, !"#$%&' ()%*+,-.+/01#23#.&/
4'*-$2'51*-56/7,)%$+/'./8-.%.+5
4
. This yeai's TFIP Repoit analyzes the uata gatheieu in 2u1u
on Apaitment Builuing foieclosuies anu compaies it to that of 2uu9. The 2u1u Repoit also
examines uata fiom 2u1u juuicial sales in an attempt to follow iental builuing foieclosuie
filings to theii enu iesult. Also, by ieviewing foieclosuie iates in conjunction with sale iesults,
LCBB has iuentifieu Community Aieas with the highest iisk to iental housing stability. Finally,
issues ielateu to violations of tenants' iights, which aie uifficult to quantify but have come to
LCBB's attention thiough TFIP's woik with ienteis, aie auuiesseu in the Case vignettes
(above) anu LCBB's Recommenuations (Section vIII).

The Case vignettes anu the Sample Illegal Notices (Appenuix A) pioviue examples that typify
pievalent violations of tenants' iights as expeiienceu by TFIP clients anu uemonstiate the
neeu foi the immeuiate enfoicement of tenant piotections. LCBB's Recommenuations then
pioviue tenants, tenant auvocates, anu policymakeis with suggestions anu tools foi
auuiessing tenants' iights violations that have piolifeiateu thiough the foieclosuie ciisis.
LCBB is also making available foi use its "Tenants in Foieclosuie Inteivention Pioject"
biochuie (Appenuix C), cieateu thiough the geneious suppoit of The Chicago Community
Tiust. The biochuie cleaily anu succinctly states the iights anu iesponsibilities of tenants
living in foiecloseu piopeities in Chicago anu Cook County.

1
As explaineu in the Nethouology (Section II, below), TFIP collects uata on apaitment builuings anu mixeu
commeicial iesiuential piopeities in oiuei to iuentify iental builuings in foieclosuie, iefeiieu to in this Repoit as
Apaitment Builuings.

2
The annual TFIP Repoits aie an outgiowth of the weekly neighboihoou iepoits that LCBB uevelopeu in
iesponse to the foieclosuie ciisis anu continues to uistiibute to community-baseu oiganizations in oiuei to aleit
tenant auvocates of iecent iental builuing foieclosuie filings in theii communities.
S
Chicago's Community Aieas aie 77 uesignateu aieas of the City with fixeu bounuaiies. A map of the Chicago
Community Aieas is available at:
http:www.cityofchicago.oigcontentuamcityueptsuoitgeneialuISChicago_NapsCommunity_AieasCo
mmunity_Aieas_W_Numbeis.puf.
4
Review LCBB's 2uu9 iepoit in its entiiety at www.lcbh.oig.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
2
' //8'' RS!D:;:B:TU>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>'
TFIP attempts to select, fiom all foieclosuie filings in Chicago, the subset of builuings that
contain iental units. TFIP acquiies uata fiom a thiiu-paity uata pioviuei, Recoiu Infoimation
Seivices (RIS)
S
, which collects infoimation on all foieclosuies anu foieclosuie-ielateu sales in
Cook County. TFIP ieviews the RIS uata foi "newly-fileu foieclosuies" that aie coueu as eithei
%)%*+,-.+/91#23#.& oi $',,-*$#%2/)*')-*+: anu locateu in the City of Chicago. The
"commeicial" categoiy incluues a vaiiety of piopeity types ianging fiom laigei apaitment
builuings to stoies anu gas stations. TFIP then seaiches each selecteu piopeity by its Piopeity
Inuex Numbei (PIN) in the Chicago's Community Infoimation Technology & Neighboihoou
Eaily Waining System (CityNews)
6
website, anu wheie infoimation is not available theie,
checks the PIN on the Cook County Assessoi's website
7
, in oiuei to auu the numbei of units
foi each builuing anu the Community Aiea to TFIP's uatabase.

TFIP iuentifies mismatches in the uata pioviueu by RIS anu the public iecoius anu makes
coiiections oi claiifying notes as appiopiiate. In auuition, TFIP iemoves fiom the uataset any
commeicial piopeities oi apaitment builuings that aie listeu in CityNews oi the Cook County
Assessoi's website as having zeio units oi otheiwise uesignateu as non-iesiuential
8
. TFIP has
also iemoveu all uuplicate filings foi the same auuiess both within a single yeai's filings, anu
acioss the aggiegate 2uu9-2u1u totals, since some filings in 2uu9 weie likely uismisseu anu
ie-fileu in 2u1u. Fuithei, TFIP uoes not collect any infoimation on conuominium oi single-
family home foieclosuies, a poition of which aie ientals.

The iemaining apaitment builuings anu commeicial piopeities fiom TFIP's uatabase aie
iefeiieu to in this Repoit as "Apaitment Builuings." In an attempt to tiack outcomes foi 2uu9
Apaitment Builuing foieclosuie filings, TFIP cioss-iefeienceu, by auuiess, sales infoimation
pioviueu by RIS foi 2u1u with TFIP's uatabase of 2uu9 filings. Foi the puiposes of this Repoit,
sales uata that uiu not coiiesponu with a 2uu9 foieclosuie filing fiom TFIP's uatabase was not
ievieweu.

To assess iental housing stability in each Community Aiea, TFIP compileu the following uata
foi each of the 77 Community Aieas: 1) The numbei of units that weie in foieclosuie in 2uu9
anu 2u1u: 2) the peicentage of iental units that weie in foieclosuie in 2uu9 anu 2u1u, ielative
to total iental units, anu: S) the peicentage of 2uu9 foieclosuie filings that have become
RE0s
9
, as ieflecteu in TFIP's ieview of 2u1u sales uata cioss-iefeienceu with TFIP's uatabase
of 2uu9 foieclosuie filings. The Community Aieas weie iankeu on each of the thiee factois
listeu above anu given a scoie fiom 1-77. The thiee scoies weie then auueu anu the
Community Aieas weie aiiangeu by highest to lowest final scoie, with highest being the most
impacteu by the thiee iental housing stability factois anu the lowest being the least impacteu.

S
RIS's website available at www.public-iecoiu.com.
6
CityNews, available at www.newschicago.oig, is an inteinet cleaiinghouse of builuing infoimation foi
piopeities in Cook County.
7
Cook County Assessoi's 0ffice Website available at www.cookcountyassessoi.com pioviues infoimation on
piopeities in Cook County, incluuing conuominium units.
8
Foi instance, piopeities uesciibeu as "0ne stoiy stoie" on the Cook County Assessoi's 0ffice Website.
9
Bank-owned properties are commonly known as REO properties or Real Estate Owned properties.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
3
Finally, TFIP cieateu a table listing the Community Aieas fiom 1-77 by theii ielative iisk to
iental housing stability.

TFIP has iuentifieu seveial limitations to the methouology uesciibeu heiein. Fiist, uata on
conuominiums oi single-family piopeities is not collecteu because it is too uifficult to uiscein
the numbei of these piopeities that aie in fact iental piopeities. Seconu, TFIP has no way of
ueteimining how many units of the Apaitment Builuings iepoiteu on aie cuiiently occupieu,
oi how many people live in each unit. Without such infoimation it is uifficult to estimate the
actual numbei of *-.+-*5/in foieclosuie. Thiiu, TFIP uoes not auuiess the numbei of ownei-
occupieu Apaitment Builuing units in the 2u1u Repoit
1u
. Finally, by choosing to excluue 2u1u
sales uata that uoes not coiiesponu with TFIP's uatabase of 2uu9 foieclosuie filings, TFIP is
only looking at a subset of foiecloseu piopeities in examining the numbei of foieclosuie sales,
specifically those iesulting in RE0 piopeities. Auuitionally, many of the 2uu9 foieclosuie
filings may not yet have concluueu. Consequently, this Repoit ieflects a snapshot of the actual
impact of foieclosuie sales on tenants in Chicago.

1u
The 2uu9 TFIP Repoit attempteu to auuiess this issue anu founu that even when taking ownei-occupancy into
account, moie iental units than ownei-occupieu units went into foieclosuie in 2uu9.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
4
///8 ):6S=B:V<6SV':9'M1M6!RS9!'C</B;/9TV'/9'344W'M9;'3454>>>>>>>>>>>>>>>'
0veiall iates of foieclosuie filings on Chicago Apaitment Builuings in 2u1u ueclineu slightly
when compaieu to those of 2uu9. Bowevei, monthly filing iates have iemaineu steauy
thioughout 2u1u without the eiiatic fluctuations that weie seen in 2uu9. This steauy iate of
foieclosuie filings, even uuiing peiious wheie ceitain banks anu seiviceis instituteu
foieclosuie moiatoiiums, ieflects the peisistence of the foieclosuie ciisis. When ieviewing
uata on all iesiuential piopeities (incluuing conuominiums anu single-family piopeities) the
City of Chicago has actually seen a slight inciease in the numbei of foieclosuie filings in
2u1u
11
. As auuiesseu below, it is likely that a sizable numbei of these single-family piopeities
aie also ientei occupieu.

11
This is uue in pait to a shaip inciease in foieclosuie filings on conuominiums thioughout the City. The
Wooustock Institute iepoits a S% inciease in foieclosuie filings foi all piopeity types within the City uuiing
2u1u, with a maikeu inciease on conuominium filings.'Wooustock Institute, Chicago City anu Regional
Foieclosuie Activity'Fouith 0uaitei 2u1u available at: www.wooustockinst.oig. It is not known how many of
these conuominiums aie in fact iental units: theiefoie, the numbei of ienteis in foieclosuie is ceitainly
unueiiepoiteu. Bowevei, anecuotal iepoits to LCBB by canvasseis inuicate that the majoiity of conuominium
occupants aie ienteis.'
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
5
In 2uu9, LCBB founu that 6,S6u Apaitment Builuings went into foieclosuie in the City of
Chicago. Those piopeities containeu a total of 2u,691 units, aveiaging slightly moie than thiee
units pei filing. /#'3454A'B=CD'E*.#F'%?$%'XAW4Y'M7$+%G"#%'C.(-F(#@&'H"#%'(#%*'
E*+",-*&.+"'H(%?(#'%?"'=(%K'$#F'%?$%'%?"&"'7+*7"+%("&',*#%$(#'$77+*Z(G$%"-K'5[AY\['
.#(%&, again about thiee units pei filing.

0n aveiage, 12S Apaitment Builuings went into foieclosuie pei week in 2u1u. :0"+'%?"'7$&%'
%H*'K"$+&A'53ANNY'=?(,$@*'M7$+%G"#%'C.(-F(#@&'H"#%'(#%*'E*+",-*&.+"A'$EE",%(#@'N[A[3\'
.#(%&8 In calculating this aggiegate figuie, TFIP iemoveu foieclosuies fileu in 2uu9 that weie
subsequently fileu again in 2u1u foi the same auuiess.

!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
6
$8' /R1M=!'CU'=:RR<9/!U'M6SM
LCBB finus that the same Community Aieas most acutely impacteu in 2uu9 weie again
inunuateu with high iates of foieclosuie filings in 2u1u8'This compounueu impact is expecteu
to place a seiious buiuen on the community iesouices of these aieas, leauing to a loss of
available iental housing, anu to fuithei community uisinvestment.

The following Community Aieas hau moie than 2uu foieclosuies fileu on Apaitment Builuings
in both 2uu9 anu 2u1u. !?"'-(&%'*E'=*GG.#(%K'M+"$&'H(%?'%?"'?(@?"&%'#.GJ"+'*E'+"#%$-'
J.(-F(#@'E*+",-*&.+"'E(-(#@&'?$&'+"G$(#"F'0(+%.$--K'.#,?$#@"F'&(#,"'344W8'
=*#&"]."#%-KA'%?"'?$+F"&%'?(%'=*GG.#(%K'M+"$&'(#'344W'+","(0"F'$'F"0$&%$%(#@'&",*#FI
H$0"'*E'E(-(#@&'(#'3454. Although iecent iepoits have shown that foieclosuie filings aie
incieasing in moie affluent aieas, low to moueiate income Afiican Ameiican anu
BispanicLatino Community Aieas continue to expeiience uispiopoitionately high iates of
Apaitment Builuing foieclosuie filings.

West Englewoou is the only Community Aiea iefeienceu above that has seen a iathei
substantial uecline in the numbei of foieclosuie filings on Apaitment Builuings. West
Englewoou hau 24S filings in 2uu9, while in 2u1u theie weie 1Su filings
12
. Bowevei, ovei the
past two yeais, foieclosuies have jeopaiuizeu 1S.S1% of West Englewoou's available iental
stock
1S
: moie than one out of eveiy ten iental units in this aiea has been oi coulu potentially
be taken off the maiket uue to foieclosuie. It is quite possible that the uiop in foieclosuie
filings in the haiuest hit communities is uue to the limiteu numbei of builuings left to
foieclose on. West Englewoou is also iankeu numbei thiee in TFIP's Rental Bousing Risk
Assessment chait (see Section v): theiefoie, this Community Aiea has expeiienceu substantial
anu significant consequences uue to the high iates of Apaitment Builuing foieclosuie filings
ovei the past two yeais.

12
146 filings when accounting foi 2uu9 filings that weie most likely uismisseu anu ie-fileu in 2u1u.
13
See % of Rental Stock Impacteu by Foieclosuie Table, p. 8.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
7
The following Community Aieas hau moie than Suu units impacteu by foieclosuie in both
2uu9 anu 2u1u. Again, the haiuest hit Community Aieas in 2u1u all hau high iates of units
impacteu by Apaitment Builuing foieclosuie in 2uu9.

The Community Aieas that appeai in the 2uu9 list above but uo not appeai in the 2u1u listing
aie Chatham, West Town, anu Neai Noith Siue. Like West Englewoou, Chatham may exemplify
an instance wheie theie aie fewei available units to foieclose on. 0vei the past two yeais
12.12% of Chatham's available iental units have gone into foieclosuie. Fuithei, in 2uu9
Chatham was iankeu numbei two in "Big Builuing"
14
units impacteu by foieclosuie. 0f
Chatham's 711 units impacteu in 2uu9, ovei 7S% weie uue to Big Builuing filings. In 2u1u, Big
Builuing filings maue up just ovei half of the total units impacteu. Chatham's ueciease in Big
Builuing filings may also contiibute to its exclusion fiom the 2u1u list above. The same can be
saiu foi the significant uecieases in units impacteu in South Shoie anu Austin. These two
Community Aieas iounueu out the top thiee foi Big Builuing filings in 2uu9. In 2u1u
howevei, each hau half as many Big Builuing foieclosuie filings.

0n the othei hanu, West Town anu the Neai Noith Siue have hau less than S% of theii total
available iental units impacteu by foieclosuie ovei the past two yeais. Speculatively, this uiop
in units impacteu by foieclosuie fiom 2uu9 to 2u1u may be uue to the iesiliency of those
Community Aieas baseu on theii ielative "iental housing health" anu geneial community
investment as compaieu to the othei Community Aieas listeu above. The Community Aiea
Rental Bousing Risk Assessment (Section v), offeis fuithei analysis of this issue.

14
In LCBB's 2uu9 Repoit, Apaitment Builuings with six oi moie units weie iefeiieu to as "Big Builuings". LCBB
continues to uistiibute its Big Builuing weekly iepoits to tenant auvocates to aleit them to iecent foieclosuie
filings on laigei Apaitment Builuings in theii communities"!
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
8
Because theie aie significant uiffeiences in the size of Community Aieas anu the numbei of
Apaitment Builuings, LCBB contextualizeu its finuings by compaiing the numbei of filings by
unit in each Community Aiea to the numbei of total iental units available in each aiea
1S
. 0sing
uata on the numbei of total iental units pei Community Aiea
16
, LCBB ueteimineu that many
Community Aieas hau moie than 1u% of theii 2uuu iental stock impacteu by foieclosuie ovei
the past two yeais.

1S
This chait likely unueiestimates the peicentage of ientals in foieclosuie in that the census uata incluues
single-family homes anu conuominiums that aie ientals wheieas TFIP's numbeis uo not. (That being saiu, LCBB
also notes that ownei-occupancy is not taken into account in TFIP's uata.)
16
2uuu 0.S. Census uata taken fiom The uieatei Chicago Bousing anu Community Bevelopment website,
available at http:uata.cmap.illinois.govchicagoaieahousing.oigAiea_Selectueogs.asp.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
9

As illustiateu in the map above, %?"'=*GG.#(%K'M+"$&'H(%?'$%'-"$&%'54^'*E'%?"(+'$0$(-$J-"'
+"#%$-'.#(%&'(G7$,%"F'JK'E*+",-*&.+"'E+*G'_$#.$+K'*E'344W'%?+*.@?';","GJ"+'*E'3454'
$+"'$-G*&%'"#%(+"-K'&(%.$%"F'*#'%?"'&*.%?'$#F'H"&%'&(F"&'*E'=?(,$@*A'E*+G(#@'$'0(+%.$-'
`E*+",-*&.+"'J"-%a'$,+*&&'%?"'=(%K. Accoiuing to the 2uuu census iesults, 19.6% of Chicago's
population lives below the poveity line. 0sing this level of poveity as a baseline, many of the
above Community Aieas also have highei than aveiage levels of poveity, excluuing: Avalon
Paik, Biighton Paik, Chatham, Belmont Ciagin, uage Paik, Beimosa, anu Avonuale. Bowevei,
with the exclusion of Avonuale anu Belmont Ciagin, all aieas mentioneu in the chait above aie
composeu of moie than 7S% Afiican Ameiican anuoi BispanicLatino iesiuents.

!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
10
J8' /R1M=!'CU'CM9b'
A numbei of lenueis fileu moie than 1uu foieclosuies on Apaitment Builuings each yeai.
Nany lenueis have ielateu entities with similai names, incluuing instances wheie the lenuei
fileu as a tiustee. The following tables combine filings foi entities with similai names. TFIP
has not taken into account iecent bank meigeis anu consoliuations of foieclosing financial
institutions
17
.

0f note, Wells Faigo Bank almost uoubleu theii foieclosuie filings in 2u1u, incieasing theii
filings by 84% since 2uu9. /#'3454A'$&'(#'344WA'%?"'E*+",-*&.+"'E(-(#@&'(#(%($%"F'JK'%?"'
-"#F"+&'#$G"F'$J*0"'(G7$,%"F'G*+"'%?$#'\4^'*E'%?"'%*%$-'.#(%&'(#'E*+",-*&.+"8''

17
Foi example, PNC acquiieu National City Bank anu Bank of Ameiican acquiieu Countiywiue.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
11
/c8 3454'):6S=B:V<6S'VMBSVd'!6M=b/9T'344W')/B/9TV>>>>>>>>>>>>>>>>>>>>>>>>>>'
Since foieclosuie can be a lengthy piocess one that begins with the filing of a foieclosuie
complaint anu enus with a sale anu its confiimation in couit LCBB attempteu to "follow" the
2uu9 Apaitment Builuings in foieclosuie by compaiing 2uu9 "newly fileu foieclosuies" with
2u1u sales uata (by matching auuiesses). This analysis pioviues an outcome ieview of a laige
subset of 2uu9 Apaitment Builuing filings, keeping in minu that some 2uu9 filings, incluuing
many foieclosuies fileu in late 2uu9, may not have been completeu by the enu of 2u1u. In
auuition, LCBB is only ieviewing sales uata that coiiesponus with TFIP's uatabase of 2uu9
filing uata on Apaitment Builuings
18
.

LCBB is especially inteiesteu in unueistanuing which builuings fiom its 2uu9 uata weie solu
in 2u1u anu became bank-owneu RE0s. RE0s aie piopeities that have completeu the
foieclosuie piocess anu weie puichaseu by the moitgagee at the juuicial sale, most likely uue
to the lack of thiiu-paity puichasei inteiest. Bue to the vaiiations in sale iesults as iecoiueu
in RIS, TFIP compileu all sales uata that listeu the iesult as RE0, RE0 0wneu, oi RE0 Solu anu
also listeu the Plaintiff as Puichasei.

0f the 2uu9 newly fileu Apaitment Builuing foieclosuies, LCBB founu 1S Community Aieas
wheie 1uu oi moie units became RE0-owneu in 2u1u. 0n aveiage, the following Community
Aieas hau 2S% of theii units in foieclosuie in 2uu9 solu to financial institutions in 2u1u.

18
6u% of the foieclosuie sales that occuiieu in 2u1u matcheu auuiesses in TFIP's 2uu9 foieclosuie uatabase.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
12
Foieclosuie auctions on all piopeity types acioss the Chicago iegion have incieaseu since
2uu9, anu a majoiity of these auctions iesult in piopeities becoming RE0s
19
. In auuition, it is
anticipateu that since the enu of the bank moiatoiia in eaily 2u11 (which gieatly sloweu the
pace of foieclosuie sales, yet hau little impact on foieclosuie filings) sales will inciease
2u
. With
this in minu, it is expecteu that most of the 2uu9 foieclosuie filings that hau not gone to sale in
2u1u, will uo so in 2u11, anu that many will become RE0s, thus incieasing the thieat to the
above-iefeienceu Community Aieas.

c8 ''''' =:RR<9/!U'M6SM'6S9!MB'D:<V/9T'6/Vb'MVVSVVRS9!>>>>>>>>>>>>>>>>>>>>>>'
A ieview of the sales uata in conjunction with the newly fileu foieclosuie uata fiom 2uu9 anu
2u1u pioviues a moie complete unueistanuing of Chicago's at-iisk Community Aieas. It is
appaient that the Community Aieas that have the highest foieclosuie filing iates also have the
highest peicentage of RE0 piopeities. Although the Community Aieas with the most filings
aie also the most likely to have highei iates of sales anu RE0s, the fact that many of these
builuings aie haiuei to sell to thiiu-paity buyeis must also be taken into consiueiation. These
Community Aieas, alieauy vulneiable befoie the foieclosuie ciisis, may now be less attiactive
to thiiu-paity buyeis uue to high iates of foieclosuies anu highei uensities of builuing boaiu-
ups in the aiea. This peipetuates the cycle of uisinvestment in the community, leauing to
gieatei accumulations of RE0 piopeities, builuing vacancies, anu thieats to community safety.

TFIP cieateu a iisk assessment scale to ueteimine the thieat to the iental housing stability of
Chicago's Community Aieas. The factois ievieweu foi this assessment incluue the following:
1) The numbei of units that weie in foieclosuie in 2uu9 anu 2u1u: 2) the peicentage of iental
units that weie in foieclosuie in 2uu9 anu 2u1u, ielative to total iental units, anu: S) the
peicentage of 2uu9 foieclosuie filings that have become RE0s, as ieflecteu in TFIP's ieview of
2u1u sales uata cioss-iefeienceu with TFIP's uatabase of 2uu9 foieclosuie filings. Chicago's
Community Aieas weie iankeu on each of the thiee factois listeu. The full list of Community
Aieas fiom 1-77 by theii ielative iisk to iental housing stability is attacheu as Appenuix B.

Foi compaiison puiposes, the following is a shoit uemogiaphic anu housing synopsis of
Chicago: baseu on 2uuu census uata
21
, Chicago hau 1,1S2,868 housing units, of those, S97,u6S
aie ientei-occupieu. Rentei-occupieu housing units maue up S6.2% of all housing units.
Fuithei, 7.89% of all housing units weie iecoiueu as vacant in 2uuu. Regaiuing population
uemogiaphics of the pieuominant iaces anu ethnicities, Chicago's population was S1.S%
White oi Caucasian, S6.4% Black oi Afiican Ameiican, anu 26% BispanicLatino. The meuian
householu income in 2uuu was $S8,62S anu 19.6% of the population was living below poveity
level.

19
The Wooustock Institute iepoits a 2S% inciease in foieclosuie auctions foi the Chicago six-county iegion.
9S% of these auctions iesult in lenuei-owneu piopeities. Wooustock Institute, Chicago City anu Regional
Foieclosuie Activity: Fouith 0uaitei 2u1u, Febiuaiy 1u, 2u11, p.S available at www.wooustockinst.oig.
2u
The Wooustock Institute iepoits a 1u.S% inciease in completeu foieclosuies fiom the fouith quaitei of 2u1u
to the fiist quaitei of 2u11. They iepoit that this inciease "was likely causeu by a iesumption of foieclosuie
activity aftei the enu-of-yeai pause in many seiviceis' foieclosuie piocesses uue to the iobo-signing scanual."
21
2uuu 0.S. Census uata taken fiom The uieatei Chicago Bousing anu Community Bevelopment website,
available at http:uata.cmap.illinois.govchicagoaieahousing.oigAiea_Selectueogs.asp.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
13

5\'*E'%?"'3X'=*GG.#(%K'M+"$&'H(%?'%?"'@+"$%"&%'+(&P'%*'+"#%$-'?*.&(#@'&%$J(-(%K'$+"'
,*G7*&"F'*E'7*7.-$%(*#&'%?$%'$+"'-"&&'%?$#'X^'=$.,$&($#8 0f all 77 Community Aieas, 2S
have populations that aie less than S% Caucasian: theiefoie 68% of these communities aie
ieflecteu in the chait above. 18 of the above Community Aieas also have highei than aveiage
iates of poveity. Bowevei, even though S2 of all 77 Chicago Community Aieas have poveity
iates highei than 19.6% (the Chicago city-wiue aveiage), only S6% of these Community Aieas
aie ieflecteu in the chait above. LCBB believes that the coiielation between iaceethnicity
anu housing stability must be examineu. The Community Aieas outlineu in this iepoit iequiie
immeuiate inteivention anu the investment of iesouices to ensuie that the iental housing
maiket is pieseiveu. LCBB intenus to highlight the incongiuent iates of housing instability in
the Community Aieas listeu above anu to stiess the neeu foi emeigency community
investment tactics in oiuei to auuiess the impenuing iental housing uepletion. Bowevei, a
tangential issue, noteu by LCBB but not auuiesseu in this iepoit, is assessing anu auuiessing
the peivasiveness of iacial segiegation in Chicago's housing maiket.

!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
14
c/8' =:9!/9</9T'!6S9;d'!S9M9!V')M=S'=:9V!6<=!/cS'Sc/=!/:9V'CU'CM9bV'
M9;':!DS6'V<==SVV:6V'/9'/9!S6SV!';<S'!:'):6S=B:V<6S>>>>>>>>>>>>>>>>
Nuch attention is uevoteu to auuiessing the blight causeu by vacant piopeities, holuing banks
iesponsible foi these piopeities, anu getting vacant Apaitment Builuings into the hanus of
community-minueu investois. Yet, theie is almost no uialogue iegaiuing the mannei in which
these piopeities become vacant in the fiist place anu the iefusal of successois in inteiest to
honoi tenancies. Builuings that become bank-owneu may alieauy be vacant upon the tiansfei
of title, oi shoitly theieaftei, especially if the piopeity is an ownei-occupieu single-family
home. Bowevei, many Apaitment Builuings iemain occupieu by tenants uuiing the
foieclosuie piocess, anu uisinvestment anu geneial neglect both befoie anu uuiing the
foieclosuie cieate complications foi these tenancies. Buiing the legal limbo in the foieclosuie
piocess aftei the lanuloiu has abanuoneu the builuing but befoie a lenuei oi a successoi in
inteiest takes legal title many ienteis simply move uue to lack of builuing seivices,
maintenance anu secuiity. Then, as illustiateu in the Case vignettes, successois in inteiest to
the foieclosuie often engage in illegal anu quasi-legal actions in oiuei to vacate the iemaining
tenants fiom tioubleu iental piopeities.

$8' ):6S=B:V<6S'/9'/BB/9:/Vd'BSTMB'CM=bT6:<9;
Illinois is a juuicial foieclosuie state
22
. The piocess fiom moitgage uefault, to juugment, to
sale
2S
, anu final confiimation of sale, can often last a yeai oi longei. Buiing this time, lanuloius
in foieclosuie aie entitleu to collect ient as long as they iemain in "possession". Theiefoie, foi
laigei builuings, foieclosing banks often ask the couit to appoint a ieceivei so that any ients
will flow to the builuing, anu not to the uefaulting ownei. The bank may also be entitleu unuei
the moitgage to take possession anu uiiectly manage the piopeity
24
, but lenueis oi seiviceis
iaiely become moitgagees-in-possession, so as not to become legally iesponsible foi
managing the piopeity uuiing the foieclosuie piocess.

Although ieceiveis aie chosen anu nominateu by the bank to manage the piopeity, ieceiveis
aie officeis of the couit, anu as such shielu the foieclosing bank fiom liability. The quality of
ieceiveis vaiies consiueiably in Cook County. A ieceivei's piimaiy concein is the
conseivation of the piopeity, anu not the well being of tenants. At best, a ieceivei will secuie
anu manage the piopeity, collect ient, anu make essential iepaiis. Bowevei, some ieceiveis
aggiessively attempt to collect ient, incluuing back ient to which they aie not entitleu, but fail
to take any steps to maintain oi iepaii the piopeity. Theiefoie, even while theii builuings aie
in ieceiveiship, many tenants still move uue to lack of management anu pooi living
conuitions.

The foieclosuie piocess enus when, aftei the juuicial sale, the foieclosuie couit confiims the
sale
2S
anu an 0iuei of Possession is enteieu against the ownei
26
. Bowevei, wheieas the 0iuei

22
The Illinois Noitgage Foieclosuie Law (INFL) can be founu at 7SS ILCS S1S-11u1;/-+/5-<=
2S
0nly aftei the moitgagoi's ieuemption iights have expiieu can the piopeity be solu at a juuicial sale. Foi
iesiuential ieal estate (ownei-occupieu 1-6 unit builuings) the ieuemption peiiou expiies seven months aftei
seivice of the complaint on the ownei, oi thiee months aftei juugment, whichevei is latei. 7SS ILCS S1S-
16uS(b)(1).
24
7SS ILCS S1S-17uS.
2S
At the confiimation of sale, title passes to whomevei puichaseu the juuicial ueeu. 7SS ILCS S1S-1Su9(a).
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
15
of Possession affects all those nameu in the foieclosuie complaint whose inteiests have been
teiminateu, tenants have auuitional iights. 0nuei both feueial law (Piotecting Tenants at
Foieclosuie Act of 2uu9 (PTFA))
27
, anu state law (Illinois Noitgage Foieclosuie Law
(INFL))
28
%"#$#%&'?$0"'%?"'+(@?%'%*'-(0"'*.%'%?"(+'-"$&"&A'*+'$%'%?"'0"+K'-"$&%A'%?"'+(@?%'%*'
$'W4'F$K&'#*%(,"'J"E*+"'%?"K'G.&%'0$,$%"'%?"(+'.#(%&
29
.

Puisuant to the INFL, tenants must also be notifieu when theii piopeity changes hanus uue to
foieclosuie
Su
. This notice must incluue the foieclosuie case numbei, the name of the peison
oi entity now iesponsible foi iepaiis anu an inuication that "the notice is N0T an eviction
notice." Without such notice, successois in inteiest aie not entitleu to collect ient oi evict
tenants foi non-payment of ient
S1
.

In auuition to the feueial anu state law, an inuiviuual oi entity that takes possession of a
foiecloseu piopeity is consiueieu a "successoi lanuloiu" unuei Chicago's Resiuential Lanuloiu
Tenant 0iuinance (RLT0)
S2
, anu thus inheiits the iesponsibility to maintain the builuing,
incluuing the obligation to piopeily hanule anu ietuin any secuiity ueposits. Successoi
lanuloius have a geneial uuty to assess the conuition of theii builuings anu to maintain the
builuing in substantial compliance with municipal builuing coues
SS
, incluuing the maintenance
of essential utility seivices
S4
. In an attempt to avoiu these basic lanuloiu iesponsibilities,
banks anu seiviceis insteau attempt to vacate piopeities acquiieu at foieclosuie.

26
The 0iuei of Possession can then be executeu by the Sheiiff against the foimei ownei Su uays aftei the
confiimation of a foieclosuie sale. 7SS ILCS S1S-17u1(u).
27
Public Law 111-22, Belping Families Save Theii Bomes Act of 2uu9 Title vII, Sections 7u1-7u4, Piotecting
Tenants at Foieclosuie Act Bouu-Fiank Wall Stieet Refoim anu Consumei Piotection Act.
28
7SS ILCS S1S-17u1(h)(4). It is impoitant to note heie that the iight to 9u uays notice unuei Illinois law is
bioauei than the feueial PTFA in that it coveis %22 lawful occupants, not just tenants.
29
A lease may be teiminateu if a puichasei will occupy the leaseu unit, but even in this case tenants still aie
entitleu to 9u uays notice. In multi-unit ientals this exception to the suivival of the lease teim shoulu at most
affect a single unit.
Su
7SS ILCS S1S-1Su8.S. The INFL sections on Receiveis anu Noitgagees-in-Possession iepeat this language
almost woiu-foi-woiu to iequiie that tenants also ieceive notice that $'.+*'2 of the piopeity uuiing foieclosuie
has changeu anu uisclosuie of contact infoimation foi iepaii iequests. 7SS ILCS S1S-17u4(f), 7SS ILCS S1S-
17uS(a-S).
S1
It is impoitant to note heie that the iequiieu notice language uoes not mention ient, anu is not intenueu to
uiiect tenants as to wheie to make iental payments. The INFL thus piioiitizes a lanuloiu's obligation to maintain
habitability by ensuiing the uisclosuie of contact infoimation foi iepaii iequests, anu baiiing collection of ient
until notice is pioviueu.
S2
Nunicipal Coue of Chicago, Title S, Chaptei 12, Resiuential Lanuloius anu Tenants, Section uSu(h) (Amenu.
Nay 12, 2u1u). The Chicago RLT0 applies to all uwelling units in Chicago, with the exception of ownei-occupieu
builuings with 6 oi fewei units. Bowevei, Section 16u of the RLT0 piohibiting the inteiiuption of tenancies by
lockout oi utility shut-offs applies to all uwelling units.
SS
>-- Section u7u of RLT0.
S4
>-- Section 16u of RLT0.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
16
J8' CM9b'16M=!/=SVd'9:9I=:R1B/M9=S'e/!D'):6S=B:V<6S'BMeV
Banks often incoiiectly assume they can avoiu lanuloiu liability. Bowevei, lanuloiu iights anu
iesponsibilities aie tiiggeieu by law at the tiansfei of title
SS
: that is, if tenants iesiue on RE0
piopeity aftei the confiimation of sale, banks aie theii lanuloius. Buiing foieclosuie, many
tenants who have the iesouices will leave tioubleu oi mismanageu builuings: many otheis
will stay. Lenueis anu seiviceis, piioi to the confiimation of sale, may not be legally
iesponsible foi Apaitment Builuing conuitions, but they shoulu be on notice oi awaie of these
conuitions, because once the piopeity becomes bank-owneu, the lenuei inheiits the
iesponsibility to maintain the piopeity anu honoi lease teims.

0pon taking title to foieclosuie iental piopeities, banks typically senu RE0 agents to the
piopeity in oiuei to negotiate "ielocation assistance" offeis, anu if unsuccessful, seive tenants
with a 9u-uay notice of theii intent to file an eviction action. Banks geneially ignoie the
obligations of the PTFA uiiecting successois in inteiest to honoi lease teims, by
systematically seiving 9u-Bay notices to all tenants, without uiligent inquiiy into what iights
inuiviuual tenants hau unuei leases with theii foimei lanuloiu. Tenants that uo attempt to
pioviue theii pieexisting leases to banks aie ioutinely ignoieu.

Banks also geneially uisavow theii iight to take ient fiom tenants, most likely because banks
uo not wish to cieate an expectation that the builuing will be manageu anu maintaineu.
Consistent with this uisinclination to be lanuloius, banks ioutinely fail to pioviue the INFL
notice uesignating a contact peison whom tenants can contact with conceins about the
moitgageu ieal estate. This is likely because the lenuei has no uesignateu inuiviuual oi entity
to contact foi iepaiis. 0ften the only contact peison foi a bank-owneu piopeity is the RE0
agent, who is equippeu not to manage piopeities, but to vacate, list anu sell piopeities. The
bank then uisiegaius its uuty to maintain builuings, likely ieasoning that the only penalty foi
non-compliance is that the bank cannot collect ient, which it uoes not intenu to uo anyway.

,8' =:9V!6<=!/cS'Sc/=!/:9
B=CD'?$&'E*.#F'%?$%'&.,,"&&*+&'(#'(#%"+"&%A'(#,-.F(#@'J$#P&A'+*.%(#"-K'$%%"G7%'%*'
+"G*0"'%"#$#%&'%?+*.@?'`,*#&%+.,%(0"'"0(,%(*#8a'LCBB uefines "constiuctive evictions"
moie bioauly than the legal uefinition to incluue not only occuiiences when a successoi
lanuloiu uenies a tenant the iight of possession of theii unit thiough illegal lockouts, boaiu-
ups, anu lack of utility maintenance, but also instances wheie a successoi lanuloiu, thiough
misleauing, haiassing oi thieatening communications, causes the tenant to piematuiely
vacate his oi hei apaitment. Tenants appioacheu by agents foi the bank will have incomplete
infoimation about theii iights, unequal baigaining powei, anu limiteu access to legal
assistance. B"#F"+&A'$#F'%?"(+'$@"#%&'$#F'$%%*+#"K&A'(#&%"$F'*E'$,P#*H-"F@(#@'%?"'
+"-"0$#%'-$H&'F"&(@#"F'%*'7+*%",%'%"#$#%&A'H(--E.--K'(@#*+"'%?"&"'-$H&'$#F'(#&%"$F'?$0"'
(#&%(%.%(*#$-(Q"F'(#'%?"(+'7+$,%(,"&'f$&'"0(F"#,"F'JK'E*+G'#*%(,"&'$#F'*%?"+'F*,.G"#%&'
fV""'M77"#F(Z'Mgg'%?"'H?*-"&$-"'0(*-$%(*#'*E'%"#$#%&L'+(@?%&'(#'*+F"+'%*'0$,$%"'%"#$#%&'
E+*G'E*+",-*&"F'J.(-F(#@&.

35
>-- Section 7u2(c) of PTFA.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
17
LCBB ieceives many calls fiom tenants faceu with constiuctive eviction, such as those
outlineu in the Case vignettes. :E'%?"'G*&%'"@+"@(*.&',$&"&'!)/1'?$&'"#,*.#%"+"F'(#'3454A'
*0"+'[X^'?$0"'*,,.++"F'(#'%?"'7+"F*G(#$#%-K'ME+(,$#'MG"+(,$#'$#F'D(&7$#(,OB$%(#*'
,*GG.#(%("&'?$+F"&%'?(%'JK'%?"'E*+",-*&.+"',+(&(&8 These tenants aie geneially in the
piocess of being coeiceu oi even thieateneu to leave theii homes thiough the illegal behavioi
of successois in inteiest. Constiuctive evictions aie likely moie peivasive in Afiican Ameiican
anu BispanicLatino communities uue, LCBB posits, to the peiceiveu notion that these
communities offei fewei legal anu othei iesouices foi tenants in foieclosuie. The following
aie a few of the most common violations that TFIP has encounteieu thiough uiiect woik with
tenants:

C$#P&'$#F'!?"(+'M@"#%&'c(*-$%"'!"#$#%&L'6(@?%&'CKd'
o Pioviuing notices oi iequests to move piioi to taking title:'
o Failing to pioviue notice iegaiuing the change in contiol oi owneiship of the builuing:'
o Attempting to evict tenants foi non-payment of ient without pioviuing the notice
iequiieu to collect ient:
o Pioviuing tenants with false infoimation iegaiuing theii iights anu tenancy status:
o Refusing to acknowleuge that they aie lanuloius oi aie iequiieu to follow state oi local
laws:
o Pioviuing notices asking tenants to move within 9u uays to those tenants who have
valiu leases that extenu beyonu the 9u-uay notice peiiou:
o veibally misiepiesenting the law uespite giving auequate wiitten uocumentation oi
notice to tenants:
o Illegally infoiming tenants that they must leave oi that theii builuings will be boaiueu-
up anu theii possessions iemoveu:
o Changing locks oi conuucting builuing boaiu-ups, piohibiting tenants' access to theii
unit:
o Attempting to negotiate coeicive "cash foi keys" ueals without pioviuing tenants with
infoimation on theii iights:
o Refusing to acknowleuge iesponsibility foi tenants' secuiity ueposits:
o Refusing to maintain the builuing, incluuing essential utility seivices, anu ensuie
tenants' safety.

Staiting in 2uu7, the iate of eviction filings in Chicago began to steauily ueciease, while the
foieclosuie ciisis anu Chicago Apaitment Builuing foieclosuie filings began to acceleiate. In
fact, 2u1u has seen the lowest numbei of eviction filings in the past ten yeais. This uiop in the
numbei of eviction filings may be attiibuteu to many factois, incluuing the economic ciisis
leauing to families uoubling-up anu to lanuloius' inability to affoiu the cost of piosecuting an
eviction action. Bowevei, LCBB believes that a substantial numbei of evictions aie being
caiiieu out extia-juuicially, thiough constiuctive eviction piactices iuentifieu above. Banks
anu seiviceis, by engaging in these piactices, aie exposing themselves to consiueiable liability
uue to the neglect of theii iesponsibilities as lanuloius.
'
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
18
c//8' 6Sc/Se/9T'6S=S9!'):6S=B:V<6S')/9;/9TVd';/V16:1:6!/:9M!S'/R1M=!'
:)'):6S=B:V<6SV'CU'6M=SOS!D9/=/!U'>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
LCBB's 2uu9 Repoit pieuicteu that the foieclosuie ciisis woulu continue to impact tenants in
low income, Afiican Ameiican anu BispanicLatino communities, iesulting in community
uestabilization anu a loss of affoiuable housing. Recent stuuies have founu that the
iamifications of the foieclosuie ciisis aie now expeiienceu city-wiue: howevei, (#'3454A'$&'(#'
344WA'E*+",-*&.+"&'*#'M7$+%G"#%'C.(-F(#@&'(#'=?(,$@*',*#%(#."'%*'F(&7+*7*+%(*#$%"-K'
(G7$,%'-*H'$#F'G*F"+$%"'(#,*G"A'ME+(,$#'MG"+(,$#'$#F'D(&7$#(,OB$%(#*',*GG.#(%("&8'
0ne inuicatoi of foieclosuies' uestabilizing effect on the haiuest hit Community Aieas is the
highly iecognizable piolifeiation of vacant, anu oftentimes boaiueu-up builuings, in vaiious
states of uisiepaii. It is LCBB's belief that the mass uestiuction of iental units, thiough
builuing boaiu-ups, vacancies, anu teai-uowns has piouuceu uispaiate thieats to iesiuents of
the Community Aieas emphasizeu in this Repoit. Noieovei, it has contiibuteu to a lack of
investment in the pieseivation anu uevelopment of Afiican Ameiican anu BispanicLatino
communities.

As a iesult of foieclosuie, lenueis often take possession of foiecloseu piopeities when theie is
a lack of thiiu-paity puichasei inteiest. Since lenueis aie not willing to maintain these
piopeities, builuings aie vacateu anu "secuieu," oi boaiueu-up, piouucing piopeities that aie
left to ueteiioiate with no accountable paity uesignateu to pioviue necessaiy upkeep. The
Wooustock Institute thoioughly analyzes the foieclosuie ciisis anu its iole in the inciease of
vacant piopeities thioughout the City
S6
. The Wooustock iepoit uncoveis high iates of what
aie coineu "ieu flag" homes, which aie vacant piopeities wheie a foieclosuie has been fileu,
yet not concluueu (possibly uue to the lenuei's uisinteiest in the foieclosuie piocess) anu
likely vacant lenuei-owneu homes that aie not iegisteieu with the City. Accoiuing to this
iepoit, theie aie 1,896 "ieu flag" homes in Chicago: these piopeities aie concentiateu in
Chicago's Afiican Ameiican communities: "Afiican Ameiican communities aie 11 times moie
likely to have a ieu flag home, while they aie S times moie likely to have a foiecloseu piopeity
anu 6 times moie likely to have a vacant builuing than aie white communities"
S7
. Although the
Wooustock iepoit ievieweu single-family homes, LCBB infeis that Afiican Ameiican
communities also have highei iates of "ieu flag" anu uniegisteieu vacant Apaitment
Builuings. These piopeities aie not maintaineu by the bank anu often become stiuctuially
uamageu, ienueiing them unuesiiable foi futuie sale.

Noieovei, a stuuy by the National Faii Bousing Alliance (NFBA) suggests that banks aie not
only iefusing to take iesponsibility foi the piopeities they acquiie thiough foieclosuie, they
aie actually violating the feueial Faii Bousing Act by uefeiiing maintenance on piopeities in
communities of coloi at highei iates than in pieuominantly white communities: "This
investigation founu that RE0 piopeities locateu in Afiican Ameiican anu some Latino

S6
!Wooustock Institute:!?-@+/0-"#.36/8*'192-3/4'*-$2'5-3/A*')-*+#-5/%.3/>-*B#$-*/($$'1.+%9#2#+:/#./!"#$%&';
Ianuaiy, 2u11. Available at www.wooustockinst.oig.
S7
79#3=
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
19
neighboihoous weie ignoieu anu pooily maintaineu to a uegiee not founu in White aieas
S8
."
Although Chicago was not one of the cities stuuieu in this iepoit, LCBB believes that the
finuings aie ielevant nationwiue anu coiielate with the expeiiences of TFIP's clients,
specifically in that the most egiegious violations of tenants' iights LCBB has encounteieu in
2u1u have occuiieu in pieuominantly Afiican Ameiican anu BispanicLatino communities. To
the extent that constiuctive evictions aie occuiiing in unuei-sciutinizeu anu unuei-seiveu
communities, this uispaiity in tieatment iequiies immeuiate attention anu inteivention.

LCBB questions why banks uisiegaiu builuing maintenance iesponsibilities (anu ignoie
tenant piotections) since such inattentiveness leaus to seveie stiuctuial uamage that uevalues
theii piopeities. As NFBA iepoits: "Befeiiing maintenance on piopeities in uistiesseu
neighboihoous viitually guaiantees that the piopeity will iemain on the maiket foi a longei
time. The bank will lose even moie money, the neighboihoou will suffei with a blighteu home
anu the local goveinment will lose tax ievenue
S9
." Stiuctuial uamage uiastically ieuuces the
sales piice of foiecloseu builuings, anu it is well known that such uamage often occuis uue to
builuing vacancies (i.e. watei pipes buist anu cieate watei uamage anu molu, vanualism, etc.).
A bettei appioach, theiefoie, must be on keeping piopeities occupieu.

The impact of Apaitment Builuing foieclosuie filings in low anu moueiate income Afiican
Ameiican anu BispanicLatino aieas is cyclical: that is high iates of foieclosuies leau to high
iates of RE0 piopeities. The banks iesponsible foi these RE0s engage in constiuctive
evictions moie ieauily in low anu moueiate income Afiican Ameiican anu BispanicLatino
communities out of an inteiest to iapiuly boaiu-up anu "secuie" builuings. Bigh
concentiations of boaiu-ups then leau to community blight anu uisinvestment, which again
feeus into the iapiu ueteiioiation of these communities. A funuamental issue is ueteimining
how to piotect builuings fiom becoming uilapiuateu anu putting suiiounuing aieas in
jeopaiuy. LCBB believes that the solution to this issue must be focuseu on pieseiving
tenancies anu keeping builuings fiom becoming vacant. It is incompiehensible that builuing
boaiu-ups aie touteu as the solution to vacant builuing safety conceins when this action
cieates uisinvestment in communities.

Recent census uata shows that Chicago's population has contiacteu ovei the past uecaue by
2uu,418 iesiuents (a ueciease of 6.9%), with the Afiican Ameiican population uecieasing by
17.2%
4u
. The loss of affoiuable Apaitment Builuings in pieuominantly Afiican Ameiican
communities thiough foieclosuie anu subsequent builuing neglect may have contiibuteu to
the high iates of Afiican Ameiican movement fiom Chicago. The link between Apaitment
Builuing foieclosuie anu the ueciease in Chicago's Afiican Ameiican community must be
exploieu.

S8
C-*-/!',-5/+"-/0%.D;/8"-*-/E'-5/+"-/F-#&"9'*"''36/C'G/2-.3-*5/3#5$*#,#.%+-/#./+"-/+*-%+,-.+/'@/@'*-$2'5-3/
"',-5=/National Faii Bousing Alliance. Apiil 11, 2u11. This Stuuy ieviews bank piactices iegaiuing foiecloseu
piopeities in Connecticut, Naiylanu, 0hio, anu viiginia.
39
79#3=
40
http:igpa.uillinois.euucontentcensus-ieveals-population-change-illinois.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
20
Although it may be uifficult to auuiess some of the ueep-seateu issues that contiibute to the
uestiuction of Chicago's low anu moueiate income Afiican Ameiican anu BispanicLatino
communities, (--"@$-',*#&%+.,%(0"'"0(,%(*#&'%?$%'-"$F'%*'J.(-F(#@'0$,$#,("&'$#F'J*$+FI
.7&'?$0"'$',-"$+'&*-.%(*#d'"#E*+,"'%?"'$-+"$FK'"Z(&%(#@'-$H&'%?$%'7+*%",%'%"#$#%&'-(0(#@'
(#'E*+",-*&"F'J.(-F(#@&8 Policymakeis must auuiess not only Chicago's vacant builuing ciisis,
but also the amoiphous issue of how to keep foiecloseu builuings fiom becoming vacant in
the fiist place. Policymakeis must also ieevaluate iesouice uistiibution that iemains
incongiuently allocateu to homeownei foieclosuie piogiams, anu ieappoition funus to assist
Chicago anu Cook County tenants.

' c///8' 6S=:RRS9;M!/:9V>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>'
LCBB has seveial iecommenuations to auuiess the peisistent noncompliance with foieclosuie
laws meant to piotect tenants. TFIP iecommenus the following thiee-piongeu appioach foi
tenants, financial institutions in possession of foiecloseu piopeities, anu policy auvocates.

o !"#$#%'$#F'!"#$#%'MF0*,$%"&: LCBB uiges tenants to leain about theii iights uuiing
foieclosuie. TFIP often finus that tenants aie pioviueu with conflicting infoimation
fiom multiple souices when theii builuing goes into foieclosuie. Tenants can be
confuseu by the infoimation they ieceive fiom lanuloius, agents of financial institutions,
anu even well-intentioneu tenant auvocates. In oiuei to ensuie that tenants anu tenant
auvocates aie equippeu with the tools necessaiy to navigate the muuuleu piocess of
foieclosuie, LCBB, with the geneious suppoit of The Chicago Community Tiust, has
cieateu a succinct, veisatile foieclosuie biochuie
41
in English, Spanish anu Polish. This
biochuie outlines the foieclosuie piocess, tenantlanuloiu iights anu iesponsibilities
uuiing foieclosuie, as well as infoimation iegaiuing the city, state anu feueial laws
piotecting tenants uuiing anu aftei foieclosuie. /%'(&'B=CDL&'?*7"'%?$%'%?(&'J+*,?.+"'
H(--'J"'.&"F'$&'$'+"E"+"#,"'E*+'%"#$#%'$F0*,$%"&'$#F'-(J"+$--K'F(&%+(J.%"F'%*'
%"#$#%&'(#'=?(,$@*'$#F'=**P'=*.#%K'JK'$--'&%$P"?*-F"+&h'(#,-.F(#@'J$#P&h'$&'$'
@.(F"'E*+'%"#$#%&'%*'.#F"+&%$#F'%?"(+'+(@?%&'F.+(#@'E*+",-*&.+"8 In auuition, LCBB
anu many othei community oiganizations pioviue community tiainings anu outieach
events on the topic of tenants' iights anu iesponsibilities uuiing foieclosuie.

o )(#$#,($-'/#&%(%.%(*#&d Although theie exist compiehensive city, state, anu feueial laws
piotecting tenants in foieclosuie, LCBB has iepeateuly been aleiteu to the calculateu
actions employeu by banks anu theii agents to avoiu compliance with these laws. Banks
anu theii agents eithei neglect theii uuty to maintain builuings anu legally teiminate
tenancies, oi they actively utilize coeicive oi illegal tactics to vacate builuings. Nany of
these tactics incluue constiuctive evictions, wheieby banks anu theii agents thieaten to
make the builuing inaccessible to tenants oi actually cieate the unlivable conuitions that
push tenants out without the iequiieu legal pioceeuings. Some of these actions incluue:
pioviuing false infoimation iegaiuing tenants iights oi attempting to negotiate coeicive
tenant buy-outs: iefusal to pioviue essential utility seivice, incluuing heat anu watei:
thieatening tenants with eviction: anu actively changing the locks, boaiuing-up

41
The English version of the LCBB Foieclosuie Biochuie is attacheu as Appenuix C. The Spanish anu Polish
veisions aie also available electionically at www.lcbh.oig.
!"#$#%&'(#')*+",-*&.+"'/#%"+0"#%(*#'1+*2",%'3454'6"7*+%'
!"#$%&'()*+&,)-./0)%1-.&2"3%4&56-))7&8.#7.-%9&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
'&:"00&;)-&<#;)-/.=.#7&);&>.#"#7&?-)7./7*)#%&
!
21
builuings, anu iemoving tenant possessions. B=CD'?$&'F"0"-*7"F'$'`J"&%'7+$,%(,"&a'
G$#.$-'E*+'E(#$#,($-'(#&%(%.%(*#&'$#F'%?"'$@"#%&'%?"K'"G7-*K'%*'.&"'$&'$'@.(F"'E*+'
H*+P(#@'H(%?'%"#$#%&'$#F'$J(F(#@'JK'%?"'-$H&'7+*%",%(#@'%"#$#%&8'This manual
incluues legal citations anu suggesteu best piactices to guiue effective inteiactions with
tenants
42
.

In oiuei to pioactively cieate systemic change in the tieatment of foiecloseu builuings,
banks, as coipoiate citizens, must woik to cieate stiategies that keep builuings occupieu
foi the benefit of the tenants involveu, the suiiounuing communities, anu the foieclosing
banks as well. 0noccupieu builuings uiain iesouices fiom not only the communities in
which the builuings aie situateu, but also the banks in possession of these builuings.
Innovative solutions to this ongoing pioblem must be geneiateu in paitneiship with
foieclosing institutions foi successful tactics to take ioot.

o 1*-(,K'MF0*,$%"&d The stiategies LCBB employs to auuiess constiuctive evictions at the
hanus of banks anu theii agents have not been successful in biinging about laige-scale
change. When TFIP attoineys aleit banks anu theii attoineys to theii illegal piactices
anu the possible iamifications, they often uisiegaiu these communications, oi asseit the
impossibility oi impiacticality of compliance. When the banks anu theii attoineys uo
iesponu to TFIP's communications, they comply solely with iespect to the paiticulai
TFIP client, yet continue to employ similai piactices with othei tenants. It is LCBB's
hope that the enfoicement of laws piotecting tenants uuiing foieclosuie is a legislative
piioiity with auequate iesouices allocateu. This woulu foice financial institutions to
enact oveiaiching policies that pieseive the iights of all tenants.

LCBB hopes to woik with policy auvocates to auu "teeth" to the cuiient statutes
piotecting tenants in foieclosuie. Thiough this iepoit, the "Tenants in Foieclosuie"
biochuie, anu the "Best Piactices foi Banks in Possession of Foiecloseu Piopeities"
Nanual, TFIP intenus to piomote the impoitance of this issue to policy-makeis in
Chicago, Cook County, anu Illinois.

42
Bank Manual available at www.lcbh.org.
!
!
!
!
!
!
!
!
!
!
!
!
"#$%&$%'($)**+!,&-%!.*)$/0!
Appenuix A
Notices Receiveu by Chicago Tenants in Foiecloseu Builuings:

!"#$%%&'(%#()*#+,-%&(*,)'#./0,1&-#0/#2(1(0&3#
#

Appenuix A

Appenuix A

Appenuix A
#
4"#56#7(8-#./0,1&3#The following notice was posteu on the unit of a tenant with a bona fiue
lease that extenus well beyonu the 9u uay notice peiiou. The notice uoes not acknowleuge
that the tenant may have the iight to live out the iemaining teim of a bona fiue lease
(puisuant to the PTFA): fails to name the tenant oi inquiie into tenant's lease teims: anu the
attoiney's signatuie is illegible anu the signatuie block with contact infoimation customaiily
placeu unuei an attoiney's signatuie is omitteu.#

Appenuix A
9"#:(-;#</=#>&8-3#The following "0ccupant Nove-0ut Agieement & Release" was offeieu to a
tenant in a Chicago builuing coveieu by the RLT0. The agieement iequiies that the tenant
ielease anu waive any anu all claims against the bank, yet fails to acknowleuge what iights the
tenant is waiving. The agieement is silent on the bank's obligation unuei the RLT0 to ietuin
the tenant's secuiity ueposit, anu iequiies that the tenant complete a W-9 foim in oiuei to pay
taxes foi the entiie amount. Banks that own piopeities in Chicago uo not have pioceuuies to
account foi secuiity ueposits, anu "ielocation assistance" is, without fail, tieateu as taxable
income, even when all oi a poition of the payment coulu be chaiacteiizeu as secuiity ueposit.#
#
#

Appenuix A
:(-;#</=#>&8-#7/1?@&)0#:/)0,)?&*:

Appenuix B
!!
"#$$%&'()!*+,-!
.!#/!0&'(1!'&!
2#+,34#1%+,!
5!#/!0&'(1!
'&!
2#+,34#1%+,!
678!
89&,:! 6-3'-4;7(<&'3!=->,%?!
5!#/!@#?A!
B'C'&D!
E,4#9!
@#C,+()!
B,C,4!
F! Englewoou 1,266 14.7% 2S.9% 98% AA 4S.8%
G! New City 1,u98 12.2% Su.9% Su% B, SS% AA SS.u%
H! West Englewoou 78u 1S.S% S1.7% 98% AA S2.u%
I! Belmont Ciagin 1,182 12.1% 24.7% 6S% B, 28% C 11.2%
J! Bumbolut Paik 1,S9u 14.S% 19.6% 48% B, 47% AA S1.u%
K! Biighton Paik 821 1S.S% 27.u% 77% B 17.S%
L! South Shoie 2,1uu 1u.7% 24.7% 97% AA 27.u%
M! Chicago Lawn 879 1u.6% 29.8% SS% AA, SS% B 19.8%
N! Austin 2,226 11.1% 2u.9% 9u% AA 24.u%
FO! Rogeis Paik 1,6S4 7.8% 26.7% S2% C, Su% AA, 28% B 21.u%
FF! Noith Lawnuale 1,181 12.9% 17.S% 94% AA 4S.u%
FG! West uaifielu Paik 674 1S.8% 24.u% 98% AA S6.u%
FH! Avonuale 92S 1u.8% 21.2% 62% B, Su% C 17.4%
FI! East uaifielu Paik 817 17.S% 17.4% 97% AA SS.u%
FJ! South Chicago 862 12.u% 18.4% 68%AA, 27% B 29.7%
FK! Chatham 1,119 12.1% 16.S% 98% AA 17.7%
FL!
uieatei uianu
Ciossing 87S 9.6% 19.S% 98% AA 29.u%
FM! Aubuin uiesham 69S 8.u% 2S.7% 98% AA 2u.6%
FN! uage Paik 4S7 12.u% 2S.9% 79%B 19.u%
GO! West Pullman S12 9.7% 29.1% 94%AA 22.u%
GF! Washington Paik S7S 1S.S% 17.S% 98% AA S2.u%
GG! South Lawnuale 86S 7.u% 19.S% 8S% B 26.S%
GH! West Lawn 148 9.6% S4.9% S2% B, 4S%C 7.4%
GI! Beimosa 46S 11.6% 2u.6% 84% B 17.u%
GJ! Wooulawn 777 9.S% 18.6% 94% AA S9.u%
GK! Poitage Paik 679 6.7% 2S.7% 7u% C, 2S% B 8.u%
GL! Washington Beights 16u 6.9% SS.S% 98% AA 12.u%
GM! Logan Squaie 1,18S S.9% 17.4% 6S% B 19.8%
GN! Fullei Paik 82 9.9% SS.7% 94.S% AA SS.u%
HO! West Riuge 7Su S.S% 21.4%
Su% C, 22%
Asian,16%B 14.S%
HF! Buinsiue S4 1u.6% 42.u% 97% AA 29.u%
HG! 0ptown 687 2.9% 27.6%
42% C, 21% AA, 19.9%
B 24.9%
HH! Avalon Paik 188 17.8% 12.S% 97% AA 8.4%
HI! Iiving Paik 69S S.6% 17.6% 44% C, 4S%B, 11.S%
HJ! West Town 1,uSS 4.2% 17.S% 47%B 2u.7%
HK! East Siue 1u7 4.9% S2.9% 68% B 12.4%
HL! West Elsuon 6S 6.u% S2.S% Su% B, 47%C 6.9%
HM! Roselanu 469 7.8% 16.2% 98% AA 17.6%
Chicago Community Aiea Rental Bousing Risk Assessment
Appenuix B
HN! Albany Paik SS1 4.8% 18.4% 46% Bis, 18% Asian 17.7%
IO! Nount uieenwoou 426 48.9% u.u% 91% C S.9%
IF! Loop 98 2.u% 97.u% 62% C, 2u%AA 12.u%
IG! NcKinley Paik 18S 7.4% 1S.6% 62% B 1S.1%
IH! Ieffeison Paik 188 S.4% 17.2% 82% C 4.9%
II! Neai Noith Siue 84S S.2% 4.u% 69% C 1S.2%
IJ! Lowei West Siue 46S 4.9% 1u.8% 89% B 27.u%
IK! Lincoln Paik 2S1 1.1% 2S.2% 8S% C 8.6%
IL! Eugewatei 7u8 S.S% S.S% 48% C, 2u% B, 17%AA, 17.1%
IM! uianu Boulevaiu 496 S.7% u.2% 98% AA 47.u%
IN! Ashbuin 49 4.S% 21.4% 4S% AA, 17% Bis 6.9%
JO! Calumet Beights 76 6.u% 16.S% 92% AA 11.9%
JF! Biiugepoit 272 S.9% 1S.1%
41% C, Su% Bis, 26%
Asian 18.1%
JG! Noiwoou Paik 48 1.6% S1.u% 88% C 4.S%
JH! Noigan Paik 128 6.7% 7.1% 67% AA 11.S%
JI! Aichei Beights 119 7.7% 2.6% SS% C, 4S% B 6.u%
JJ! Bunning 128 4.1% 16.2% 82% C S.2%
JK! 0'Baie 2u u.6% S7.S% 81% C 7.7%
JL! Noith Centei 2u2 2.S% 1S.6% 69% C 8.6%
JM! Neai West Siue 18S 1.4% 17.4% SS% AA S7.S%
JN! Nontclaie 87 6.S% S.u% S9% B S.6%
KO! Lincoln Squaie 272 2.1% 11.8% SS% C, 27%B 11.4%
KF! Lakeview S2S 1.S% 9.u% 8u%C 8.7%
KG! South Beeiing Su 2.9% 16.7% 61% AA 19.6%
KH! Riveiuale 8 u.S% 28.6% 97% AA S6.u%
KI! Beveily Su 2.1% 19.1% 6S% C 4.u%
KJ! Byue Paik SS4 S.6% u.u% 44% C, S8%AA 16.S%
KK! uaifielu Riuge S9 2.4% 11.1% 69% C 1u.1%
KL! Noith Paik 87 2.9% u.1% SS.8% C, 14.S% B 1u.S%
KM! Cleaiing 61 2.7% u.4% 76% C 6.9%
KN! Bouglas 67 u.7% 12.S% 86% AA 41.2%
LO! Foiest ulen SS 4.S% u.u% 81% C 2.6%
LF! 0aklanu SS 1.7% 8.7% 98% AA S2.S%
LG! Kenwoou 96 1.S% u.u% 76%AA 24.u%
LH! Pullman S8 2.4% u.u% 81% AA 22.4%
LI! Begewisch 16 2.1% u.u% 67% C 1u.6%
LJ! Aimoui Squaie 26 u.8% u.u% 17%AA, 61% Asian S1.1%
LK! Euison Paik 6 u.6% u.u% 9S% C 2.4%
LL! Neai South Siue 2 u.7% u.u% 64% AA S2.S%

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GET HELP
A number of oreanizations work to proteot tenant's
riehts and provide resouroes:
LEGAL ASSISTANCE IN CHICAGO AND
COOK COUNTY SUBURBS:
Lawyers Committee for Better Housing
(312) 784-3507
www.lobh.ore
Legal Assistance Foundation of
Metropolitan Chicago
(312) 341-1070
www.lafohioaeo.ore
OTHER RESOURCES:
Metropolitan Tenants Organization
(773) 292-4988
www.tenants-riehts.ore
Regional Home Ownership Preservation Initiative
www.reeionalhopi.ore/help
This brochure and the Tenants in Foreclosure
Intervention project are funded in part by a generous
grant from The Chicago Community Trust.
loreolosure doesn't mean
Get out now."
YOU HAVE
RIGHTS.
If you are renting an
apartment, house or
condo that is in
foreclosure, you have
the right to:

Know if your building is in foreclosure.

Live in a safe apartment with utilities.

Stay until your lease ends.

90 days notice if you are asked to move.

Be notied if your landlord or buildings
management changes.

Get your eviction court record sealed
(made condential).

Recover your security deposit.
Tenants in Foreclosure Intervention Project
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IRU%HWWHU+RXVLQJ
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WHICH LAWS PROTECT TENANTS?
1enants are oovered bv the federal Proteotine 1enants
at loreolosure Aot of 2009 alone with state and oitv
laws as well. ln Chioaeo, the Residential Landlord
1enant 0rdinanoe oovers manv tenants and offers
speoial proteotions. 0ther towns, like Lvanston or 0ak
Park, have speoial ordinanoes and resouroes for
tenants. Cheok with vour Citv or villaee to learn if it
has a looal landlord tenant ordinanoe or has passed
anv speoial laws to proteot tenants in foreolosure.
1his broohure is intended to eive onlv basio infor-
mation about tenant's riehts and responsibilities.
1o learn more eo to www.regionalhopi.org/help.
WHAT IS FORECLOSURE?
lf vou are rentine an apartment, house or oondo that is
in foreolosure, this means a Court has sent a leeal
notioe to the owner of vour unit. 1he notioe savs that
the owner has not paid the morteaee, and must
appear in Court to resolve the issue with his or her
lender (bank). 1he prooess to resolve this oan take
several months to a vear or more. 3ometimes, the
bank and the owner reaoh an aereement and vour
landlord oontinues to own the propertv. ln other oases,
the Court appoints a Reoeiver (a new manaeer) or
allows the bank to sell the propertv.
Uurine this prooess vour responsibilities do not
ohanee. lor instanoe: YOU MUST CONTINUE PAYING
RENT, as failure to pav rent mav be erounds for
eviotion. But vou also have additional riehts, and
resouroes to help vou understand what is happenine
to vour apartment and what vour options are.
DURING THE FORECLOSURE
PROCESS
YOU HAVE A RIGHT TO LIVE IN A SAFE
APARTMENT WITH UTILITIES
Uurine the foreolosure prooess, vour landlord is
responsible for the maintenanoe of vour apartment. lf
a new owner buvs vour apartment or the Court
appoints a Reoeiver (a new manaeer), the new landlord
will be responsible for maintenanoe and anv other
terms of the lease, inoludine utilities.
lf vour buildine is not maintained and beoomes unsafe,
or the buildine's utilities are shut off, talk with vour
landlord. lf that is not possible or doesn't tx the
problem, oall the Buildine Uepartment of vour oitv or
villaee. ln Chioaeo vou oan oall 311.
YOU CAN STAY UNTIL YOUR LEASE ENDS
Proteot vourself aeainst illeeal lookouts. lf anvone
other than a sheriff orders vou to move out, or if vour
buildine is boarded up or utilities (heat, eleotrioitv, or
water) are turned off without a oourt order, oall 911
and tle a polioe report.
YOU MUST BE GIVEN 90 DAYS NOTICE
IF YOU ARE ASKED TO MOVE
Beware of letters and notioes posted on vour buildine
savine that vou must move out immediatelv. After the
foreolosure ends, a new landlord or owner who wants
vou to move must eive vou a 90-dav notioe. All tenants
have this rieht, inoludine month-to-month tenants.
1enants with leases should be able stav until the end
of their lease.
A new owner (sometimes a bank) mav offer to pav vou
to leave earlv. ou are free to aooept that offer Bu1
beware of offers that ask vou to:
Leave vour home too quioklv.
Move out and hand over vour kevs (oash for kevs)
before vou are paid.
wait until everv tenant moves out of the buildine
before vou are paid.
YOUR RESPONSIBILITY: PAYING RENT
Uurine foreolosure, vou must oontinue to pav rent to
vour landlord. lf a new owner buvs vour apartment or
manaeement ohanees, vou are supposed to be
notited of these ohanees in writine. lf an eviotion was
tled aeainst vou for not pavine rent, but vou were
never notited that there was a new landlord to pav,
vou mav have a defense aeainst the eviotion.
AFTER FORECLOSURE
YOU MUST BE NOTIFIED IF YOUR
LANDLORD CHANGES
ou have a rieht to be notited in writine if vour landlord
ohanees. ln some oases, a new owner will buv the
buildine or vour apartment, beoomine vour new
landlord. ln other oases, a Reoeiver (a oourt-appointed
manaeer) will be put in oharee of the buildine.
lf an eviotion was tled aeainst vou for not pavine
rent, but vou were never notited that there was a
new landlord to pav, vou mav have a defense aeainst
the eviotion.
YOU HAVE A RIGHT TO SEAL YOUR RECORD
lf the oourt orders vou to be evioted beoause the
buildine is beine foreolosed not beoause vou did
anvthine wrone the oourt reoord oan be sealed
(made oontdential) to proteot vour oredit ratine and
vour abilitv to rent in the future.
YOU HAVE A RIGHT TO RECOVER
YOUR SECURITY DEPOSIT
our old landlord should return vour seouritv deposit
if the foreolosure makes vou move or after thev lose
the buildine. ln Chioaeo, the new owner of the
propertv, suoh as a bank, mav be responsible for
returnine seouritv deposits.
STEPS TO FIND OUT IF YOUR
BUILDING IS IN FORECLOSURE
lf vou have questions or oonoerns about vour
apart ment beine in foreolosure, talk to vour
landlord. ou oan also do researoh on vour own
to tnd out about the status of vour apartment:
ln Cook Countv if vou know the foreolosure
oase number:
0o to www.cookcountyclerkofcourt.org.
lollow the Link for 0nline Case lnfo" and
oliok lull Lleotronio Uooket 3earoh".
3eleot Chanoerv" division and enter the
foreolosure oase number.
lf vou don't know the oase number, eo to
www.regionalhopi.org/help to tnd oomplete
instruotions.

Tenants in Foreclosure Intervention Project

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