Legal Question in Landlord & Tenant Law in Illinois
Our rental property is currently in foreclosure and our tenant is refusing to pay us rent. There is not a sale date yet for this property. We are currently working with the financials to refinance or do a loan modification for this property. Does the renter still need to pay rent to us?
2 Answers from Attorneys
Yes. Your renter still owes you rent.
You may want to "Evict" the renter and get a judgment against them for any monies owed.
These can be tough situations. If they're just playing you because of the foreclosure and think they can get out scot free or something, then serving notice and starting an eviction you could shake some money lose or you could run the risk of having them say "ok" and split, leaving you having to relet in the middle of trying to do your loan mod.... You could sue without an eviction, but again that may just get them bent out of shape too. Instead, if you think they are just scared but basically good people, you may instead want to consider first having an attorney letter sent to them letting them know of their obligation, with a short string, so if they don't react with money immediately, then you can decide if you want to risk an eviction. You have to assess the dynamics here. PS keep in touch with both the lender AND the foreclosure people AND the workout people and make sure they all know what is going on with the loan modification -- we keep hearing how one hand doesn't know what the other's doing and you could wind up with a judgment against you in foreclosure WHILE you're still working out the loan modification. Best of luck.
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