Where Do I Start With A Landlord Tenant Issue?

In these challenging financial times, many people choose to rent instead of own their residence. For many reasons, this can be a smart financial decision. If you have an issue with a rental situation as a landlord or renter, your remedies depend on where the unit is located, and what type of unit you have. For instance, many of those rentals will be in condominium buildings from owners who are renting out their unit because they wish to move but cannot sell. What many renters of condominium units may not be aware of is that condominium units in Illinois are governed by a different set of laws than apartments and single family homes. Maybe you are in a smaller building renting from an on-site owner. This presents a different situation too.

As a renter or lessor of an apartment or home in the City of Chicago, your first resource is the Chicago Residential Landlord Tenant Ordinance (Chicago Municipal Code Title 5 Chapter 12), known informally as the CRLTO or RLTO. This ordinance applies to any residential rental building except, those that have fewer than six units and which are occupied by the owner. Note that both of those requirements must be met for the building not to be covered by the ordinance. For example, if the building is a three-flat but the owner doesn't live there, it will still be covered by the ordinance. The CRLTO is known for being very tenant friendly, so chances are if you are a tenant having a problem with your landlord your issue will be easily handled by the Ordinance. If you are a landlord, take great care to make sure your lease drafting and security deposit are handled in compliance with the RLTO or you may be subject to fines. The fines here for landlords are steep, so having an attorney review any new lease documents and help you handle the security deposit, is a worthwhile investment in most cases.

What if you are in a building that is not covered by the RLTO? An example of a building in the City of Chicago that will not be covered is a two-unit townhouse where the owner lives in one half, and rents the other half out to you. Of course, if you are renting outside the City obviously it will not be covered. In these situations, Illinois State law controls. The Illinois state Landlord and Tenant Act is found at 765 ILCS 705. Also keep in mind that there may be municipal statutes in your city or township that also determine your rights and remedies. And lastly, how about condominiums? In addition to the applicable municipal or state statute, Condominium dwellers need to be aware of the Illinois Condominium Property Act, which is found in the state statutes at 765 ILCS 605.

Confused yet? There's no need to be. Start by applying any municipal or city code in your area. Where there is no municipal code, defer to the Illinois Landlord and Tenant Act. And if you are renting a condominium or leasing one out, the Condominium Property Act will apply across the board. A link to all the statutes is online at: www.ilga.gov/legislation/ilcs/ilcs2.asp?ChapterID=62. There are also great self-help resources at: www.illinoislegalaid.org. This link is especially helpful in sorting out which laws apply to your situation.

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Who the heck am I? I am a 2006 graduate of The John Marshall Law School in Chicago, Illinois, and have been licensed to practice since 2006. My goal in solo practice is to focus on issues relating to the home and property ownership. I am passionate about helping people stay in the homes they own, and sorting out the legal issues that can arise when they are renting.

What To Do Next When You Get A Foreclosure Summons

By: Emma Scott, Esq.
Owner, The Scott Law Office, Chicago, IL
www.scottlawchicago.com


For what seems like years now, the headlines have been screaming a seemingly endless stream of bad news from the housing and lending crisis. Lenders are evil! Borrowers are lazy and unworthy! Someone has to take the blame! Truthfully, there is enough blame to go around for everyone. But, if you're a homeowner facing a foreclosure summons, you're less worried about blame and more worried about what to do next.

The first feeling when receiving that summons is often one of being overwhelmed and defeated. It's likely you knew this moment was coming; you're at least three months behind in your mortgage payments, after all. But there's something about getting the papers that makes it more real and final. When feeling overwhelmed and defeated it's easy to give up and not see all the options available to you. However, the most important first step in your foreclosure defense is the realization that you have options, and that there is a wealth of information available to help you make decisions. After you take a few deep cleansing breaths, assess the situation as follows:

What is my goal? Do you want to keep the home? This is maybe the most important initial question to ask yourself. It's followed closely by...

Can I afford my goal? Many people would like to keep their home, but a quick financial assessment shows them it's not realistic. Before even talking with a bank about modification or a short sale, make a written budget including all your income and expenses. Be rigorous and honest with yourself. If you can't afford the current payment, chances are you won't be able to afford the modified loan payments, which are likely to be higher.

How do I get to my goal? If you think you may be able to afford a modification, it's time to contact the bank and have them run the numbers. Be proactive and aggressive in dealing with the bank and get everything in writing. Banks are notorious for letting paperwork on these deals fall through the cracks. Do a little internet research on the HAMP (Making Home Affordable) legislation that builds in a number of protections for consumers modifying their mortgage loans.

If you can't realistically afford to hang onto this particular property, realize that you may have options to pay off the loan such as a short sale or deed in lieu of foreclosure. It's possible one of these could help you get out from under the loan and avoid having a foreclosure judgment on your credit report. An attorney can help you sort through these options and exercise them in a timely manner.

And while we're on the subject of attorneys...

Should I hire an attorney or go pro se? As an attorney focused on defending borrowers in foreclosure litigation, you may think my ultimate goal is to convince you to hire me. Yes, I'd love it if you were moved by this article to call me and get an analysis of your foreclosure case.

But, there are situations where an attorney is called for, and those where it is not. If you don't want to keep the property, and you don't have a defense to the litigation (a topic for another blog post), you're throwing good money after bad by hiring an attorney to represent you. In this situation there are many good free resources on how to file the appropriate paperwork on your own. A good place to start is http://www.illinoisprobono.org/index.cfm?fuseaction=home.dsp_Content&contentID=1640.

Finally...Don't Panic. I realize this may be the most dire situation you've faced in your life, and that not panicking is easier said than done. If you're not sure whether to get an attorney, and you need support, enlist a trusted business-savvy friend to help you sort through the options. Whatever happens, ignoring the situation is NOT the solution. Dealing with the situation head on will leave you feeling more empowered, and put you in charge of your options.