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  1. #1

    Question Tenant Named As a Defendant in a Foreclosure Action

    My question involves an eviction in the state of: Illinois

    Synopsis:
    I live in an apartment on the property of a synagogue which I maintain. Under my unwritten agreement with the synagogue, I have no financial responsibility in the way of rent or utilities and receive a very modest salary. There is no lease with the synagogue although they have referred to me as a "tenant" in writing. The synagogue has been in financial decline and has been unable to keep up it's mortgage. The bank holding the mortgage has has initiated foreclosure proceedings on the property (approximately 3 months ago). The synagogue has agreed to terms with the bank to vacate the property. A member of the synagogue board has only just told me (via an email and phone conversation with a secretary) that I will need to leave the property in three days when they vacate the premises since they will discontinue paying insurance and utilities. Personal negotiations to continue as property caretaker for the bank have failed and the bank is now telling me (also by phone) that if I do not vacate the property within three weeks, they will name me on the foreclosure, damaging my credit.

    Questions:
    1. Legally, am I a tenant with the rights that would entail?
    2. Can the synagogue force me to leave on 72 hours notice?
    If the answer to (1.) is yes,...
    3. Can the bank name a non-mortgage holding tenant in a foreclosure action?
    4. If the answer to (3.) is yes, what are the repercussions/consequences for being named?
    5. In the event I fail to comply with the synagogue and bank's demands and remain on the property, what does the eviction process look like?
    a. What are the ancillary consequences of being evicted (credit, future property buying/renting, etc)
    b. Does the bank have to give me notice (e.g. 30 days, 90 days)?
    c. Are there any steps I might take to delay eviction (with/without legal representation)?
    d. What's an educated guesstimate on how long might my ultimate eviction might be delayed?

    Beyond being a property caretaker, I'm a full-time student who just lost his only income source. If my sad situation encourages any bright legal mind to offer assistance answering any or all of the above questions, I would be most incredibly grateful. Thanks in advance

  2. #2
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    Default Re: Repercussions for a Tenant Named As a Defendant in a Foreclosure Action

    Yes you could well be considered a tenant.
    They can't force you out on just their own statement (with any level of notice).
    Banks tend to name anybody who might have an ownership or security interest on the property. They don't want someone to come back and challenge that they weren't properly notified that they were going to lose such interest.
    Generally, unless you're in the middle of some other loan process, being named is a non-impact thing. If it bothers you, you can disclaim interest to the lender and they should take you off. Long term impacts are nil.

    The big question is whether you, as someone who never actually paid rent, is a "bona fide" tenant under the federal law. If you were, you would be entitled to a 90 day notice. However, almost certainly you are not, and a normal eviction would be immediately pursuable. You can possibly negotiate them to stay or compensation for moving out in a quck and orderly fashion.

    I would suspect the longest you have is 60 days from the date the foreclosure sale happens. I'd be looking to move ASAP.

  3. #3

    Default Re: Repercussions for a Tenant Named As a Defendant in a Foreclosure Action

    flyingron, Thanks so much for the information. This is really helpful. A couple follow-up questions/clarifications

    being named is a non-impact thing.
    You are saying the "being named will damage your credit" line I'm getting from the bank is just a bluff?

    Does being evicted stay on my record somehow? damage credit, etc?

    If it bothers you, you can disclaim interest to the lender and they should take you off. Long term impacts are nil.
    This is something I do with the judge? county clerk? bank?

  4. #4
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    Default Re: Repercussions for a Tenant Named As a Defendant in a Foreclosure Action

    Being named in the suit will have ZERO effect on your credit scores. The only issue is that if you are in the middle of getting financing for something and they search court records they may have an issue with a pending law suit.

    I'd try the lawyers for the lender first. If not you can go to the court.

  5. #5
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    Default Re: Repercussions for a Tenant Named As a Defendant in a Foreclosure Action

    If you are named to the foreclosure action, that would not make sense and you should seek to be dismissed. However, they may be thinking about adding some type of eviction action against you, and having an eviction on your record could affect you in the future, particularly with rentals.

    There seems to be some funny business in your compensation -- you are being paid a low salary and are being given a "free" place to stay, but it does not appear that the cost of the apartment has been treated as income, either by you or your employer, as opposed to a "wink, wink, nudge, nudge" arrangement in which they don't have to pay a higher salary or matching taxes on the housing subsidy.

    You're a full-time student, so it's possible that your college offers some form of student legal services. I suggest looking into that possibility and seeking help if services are available. It's also possible that you would qualify for help from legal aid, although they are typically swamped and thus might not be in a position to assist. Check these resources.

  6. #6

    Default Re: Repercussions for a Tenant Named As a Defendant in a Foreclosure Action

    I'm new to this forum, but way impressed. You folks are fantastic.

    Mr. KnowItAll
    They may be thinking about adding some type of eviction action against you,
    Would I be correct in assuming that they wouldn't be able to initiate any eviction action before the foreclosure was finalized?

    having an eviction on your record could affect you in the future, particularly with rentals.
    That makes sense. Just to be clear, by "record" we are simply talking about the court documents which would show up in any sort of comprehensive background check? I'm assuming there's no way of getting this expunged?

    Thanks again for the continued assistance.

  7. #7
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    Default Re: Repercussions for a Tenant Named As a Defendant in a Foreclosure Action

    Quote Quoting iliketheinternet
    View Post
    Would I be correct in assuming that they wouldn't be able to initiate any eviction action before the foreclosure was finalized?
    I'm not going to be able to tell you what they have in mind. Perhaps they plan to ask the court to rule that you're not a tenant, and to bar you from the premises as a trespasser should you enter after the foreclosure is complete.

    Court records are public records. A record of an order of eviction cannot be expunged from your credit reports (although if you're removed as a trespasser, that's not the sort of order that would appear on a conventional credit report).

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