Lenders Now Liable For Refunding Chicago Renters' Security Deposits On Tenant-Occupied Foreclosures

In Chicago, Illinois, Chicago Breaking News Center reports:

• Thousands of apartment dwellers who stand to lose security deposits because of building foreclosures would get their money back under an ordinance the City Council approved [earlier this month].

• Aldermen voted 47-0 to approve Mayor Richard Daley's proposal to require all lien holders -- typically banks -- in foreclosure cases to pay back security deposits to tenants who are pushed out of their homes. Under current city law, the landlord and not the lien holder is responsible for paying back the security deposit. That often doesn't happen, city officials have said.

• Last year, more than 8,500 rental units were affected by foreclosures, according to city statistics. With an average security deposit of $860, up to $7.3 million was lost, the city has said.

Source: Renters will get security deposits back in foreclosures.