I will tell you that if your landlord stops paying his mortgage tomorrow- because Illinois is a judicial state- you would be safe to assume you have at least 12 months and likely more- again no promises but that is what the statistics say.
After the 12 months- or whenever the bank completed their foreclosure- the home would go to Sheriff Sale at which point the bank would own it again.
The property would then go through redemption and confirmation periods- during which time the previous owner can buy the property back by paying what he owes plus penalties, fees, etc which never happens.
Once all this occurs- think something like 14-18 months in all but the rarest of cases- you then get a notice from the Sheriff on your door- it's a huge orange sticker- notifying you of the date you will be evicted.
In Cook County the Sheriff is running about 4 months from date of notice posting until actual eviction.
Again, definitely speak to an attorney because you have rights but knowing the process and how long things take should definitely put your mind at ease so I figured I'd take the time to give you the basics.
Working with multi-family buildings thoughout the northside of Chicago, I have seen so many multi-units where the owner is short selling and still collecting rent. These people should be locked up, the owners that is.
They can't feign innocence. Owning a two flat, or 4 flat, or any investment property, in Chicago, or elsewhere, is a business decision. You know how much you need to come up with monthly. Landlords are pocketing 1 - 3 years worth of rent while neglecting their mortgage which in turn negatively affects the market for everybody.
The behavior is despicable. Sure, there are members of the banking community that need a good dose of lock-up as well. But these landlords,who have often times stopped taking care of their buildings, still collect rent, and then when somebody wants to buy their short sale, they refuse to do anything to accommodate the sale.
landlord to sell it to you.You can buy it subject to the existing mortgage.Forget the due on sale
clause that some will say kicks in.Find a RE broker,and a RE attorney ,they can make it happen.
Talk to your lawyer about the risks and rewards of not paying your landlord.
Best of luck,
You are legally obligated to pay rent while you live there, regardless of those circumstances, unless the unit condition is uninhabitable or needs repairs.
There may be a better solution for the landlord/owner, a short sale that preserves your tenancy and let's them end their responsibilities with legal protection and possibly no financial consequences other than a hit to their credit.
We have been successful with this and it is a good option in today's environment.
I feel everyone has given you really good info on how to proceed on your end but I would like to offer a different way of helping.
Do you really like the place you're in currently? If so, it makes me cringe when I hear a person walking away from their mortgage, resulting in foreclosure, when they can very easily explore the option of short selling their property making things much easier on you and your landlord. The reason it's easier on you is because you won't be forced out of your rental - if your landlord was to short sell the property we would market the property to Buyers who know you have a lease until November 2013. Legally the new owner would need to honor the terms of your lease which is why we would market the home to investors. Another thing is showings - obviously those can get a little annoying for a tenant who is being put in this situation beyond their control. What I would want to do is to price the property extremely well in order for us to go under contract quickly. I would also be able to restrict showings to certain days or certain hours that are convenient for you. I really feel going this route will make your life a lot less stressed because you at least know what's going on and there isn't as much uncertainty.
On your landlord's side short selling impacts his life much less than letting the property going into foreclosure. It can impact his credit much less, his finances and just his future because the ramifications of short selling are much less than foreclosing.
If your landlord is willing to try this out and make this work I would love to be the person to help you both out. Your zip code of 60616 gives me hope we can sell the property quickly now I just need to get started right away. Fortunately August 2012 wasn't long ago so we still have time to make this right!
Call or email me with any questions and please pass my information on to your landlord in order to get started.
3101 N. Greenview Avenue, Chicago, IL 60657
309-269-3499 CELL | 773-305-0480 FAX
I would suggest speaking briefly to an attorney regarding your walking away from your lease. I would continue to pay the rent while your there but would as I said start looking for a new place immediately and once I found it would not hesitate to simply move out and pay only for the time you were there. While you're obligated to pay the rent the owner is obligated to maintain the property that is the essence of the legal contract that exists between you and the owner. Failing to pay the mortgage is not maintaining the property and in my mind negates the lease agreement.
This is a very good question however there is no definite length of time. As of now, the time is averaging 1 to 5 years, depending on the bank and the owner's situation in an entirety. I recommend speaking to a good attorney who specializes in these issues. I worked with Patrick Joy with SPK Law many times and he has helped out a tremendous amount of my clients who are in the same situation as you are. Give him a call and see what he suggests.
Sohail A. Salahuddin | Group Founder
Innovative Property Consultants Group | Sales and Leasing
Jameson Sothebyâ€™s International Realty
425 W. North Ave. | Chicago, IL 60610 â€¨
O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030
"Locally Known, Globally Recognized"
Reda Ciprian Magnone LLC
Please keep in mind that although the landlord may have stopped making the mortgage payment, it is necessary for you to keep making your monthly rental payment for various reasons. Legally the owner still owns the property not the bank. An attorney will provide the specific details for the reasons why necessary to keep current.
Short Sale Specialist /Foreclosure Consultant
212 E. Ohio St.
Chicago IL 60611
Hopefully this background information will inform your decision.
A couple of thoughts, first your obligation to pay rent is not dependent on his paying the mortgage. Your lease is a promise to pay, so unless they told you, preferably in writing not to pay anymore, don't think that withholding your rent won't expose you to an eviction.
Lenders are all over the map on how soon they will act. I know one owner going on 5 years without making a payment, others get action in 60-90 days.
If you want to break your lease and move, you may get break due to you the banks activities, so keep your eyes open for new places to rent. If things get at all difficult between you and your landlord, read over your lease, the Illinois Landlord Tenant Law and consider speaking with a Real Estate Attorney.