IL HB5731

Creates a new "right to rent" provision allowing eligible mortgagors to remain in foreclosed properties as tenants after foreclosure proceedings by paying fair market rent approved by the court.

Establishes eligibility requirements: mortgagor must occupy a single-family property as principal residence for at least 2 years, mortgage must have originated before July 1, 2007, and property purchase price must be below median for the area.

Requires parties entitled to possession to provide 30 days' written notice of the right to rent, with specific notice requirements including 14-point bold type and detailed terms of tenancy.

Sets rental rate at fair market value approved by court, not to exceed the mortgagor's original monthly mortgage payment; allows either party to request redetermination after 12 months.

Provides eligible mortgagors who occupy property for at least 12 months and maintain it properly receive 5% of sale price; applies to pending foreclosures and foreclosures commenced within 5 years of June 1, 2012 effective date.