Blog: Foreclosure

While much of Lawyers’ Committee for Better Housing’s (LCBH) recent work has focused on preventing evictions during the COVID-19 pandemic, reminders of a previous housing crisis that placed tenants in peril came roaring back this spring. In late April, an adverse court decision struck down the Keep Chicago Renting Ordinance (KCRO). Thanks to the collective action of LCBH, Communities United (CU), and First Ward Alderman Daniel LaSpata, the City Council passed a revised and improved KCRO on July 21st. This urgent response rested on the likelihood that large numbers of tenants may once again face eviction due to building owners being unable to pay their mortgage.

The KCRO was originally passed in 2013 after years of advocacy by LCBH and community partners responding to the housing crisis that began in the late 2000s. For several years following the housing crash, tenants living in foreclosed buildings were left in legal limbo, often unable to pay rent to the original owner while knowing next to nothing about the fate of the building and any potential new owners. In those circumstances, many renters were evicted from their homes or were not extended new leases by new ownership, leading many to heightened housing instability thereafter.

We recently caught up with two LCBH alumni, Rachel Blake and Charles Nicholls. Rachel is Associate Director for Regional Housing Legal Services in Glenside, Pennsylvania. Her work is a mix of policy advocacy, organizational strategy and strategic planning. Charles is an attorney at Nicholls Law Offices in Chicago, IL. His firm deals with civil litigation, income, civil rights, employment and housing issues.

Amanda and George Fullerton have lived in Chicago all their lives. They had recently moved into a three-bedroom apartment, which costs $850 a month, on the Southside of the city with their adult daughter. George Fullerton makes a modest living as a truck driver and is the sole breadwinner for his family (his wife and daughter are not employed). The family lived peacefully in their home and paid their rent on time. This spring Mrs. Fullerton came to LCBH with a pending eviction case. She was confused, because she had recently paid rent and was unsure of why this case was being filed.

Apparently, George and Amanda had seen someone new around the property that had informed them that there was a “new owner” and that the previous owner had gone into foreclosure. The “new owner” assured the Fullertons that he would still be renting to them. That was the first and last time they ever heard from the new owner. An attorney at LCBH was able to access the case and explained to Mrs. Fullerton that she had not properly received the compliant and court summons. LCBH informed her that the case had been filed against unknown occupants by the purchaser at the foreclosure sale.

However, Mr. and Mrs. Fullerton had been known. They had signed a lease that was still valid until the end of October with the former landlord, their name was on the mailbox, and Mr. Fullerton had recently spoken to the new owner in March.

The foreclosure crisis, affecting more than 70,000 Chicago rental properties since 2008, the CHA “Plan for Transformation,” and other forces have accelerated the pace of neighborhood change and concern about gentrification. To be clear, the concern is not about repairing dilapidated properties; everyone wants that. Rather, the concern is about the physical displacement of poor and working class families. This concern frequently includes not only economic displacement, but cultural dislocation as well. For a graphic sense of neighborhood change in Chicago 1970-2010, see the UIC Voorhees Center’s Gentrification Index at http://www.voorheescenter.com/#!gentrification-index/ccmx.