Amendment of Municipal Code Chapter 2-22 by adding new Section 2-22-060 establishing registry of properties facing foreclosure

• Record number: O2026-0028192
• Type: Ordinance; category: Municipal Code Amendments
• Status: In Committee
• Sponsor: Gilbert Villegas (36th Ward)
• Committee: Committee on Zoning, Landmarks and Building Standards
• Submitted Date: Sep 9, 2026
• Introduction Date: Sep 23, 2026
• Official record: Office of the City Clerk

Impact report

Written by AI from the official document. AI can make mistakes; the official document always wins.

Lenders that start a foreclosure on a Chicago property would have to register it with the Department of Buildings within five business days and pay a registration fee.

Who it affects

• Mortgage lenders and loan holders (mortgagees): They would have to register each property they start foreclosing on, renew every six months, keep the information updated, and pay fees or late fees.
• Homeowners and property owners facing foreclosure: Their properties would be listed on a city registry while the foreclosure case is ongoing.
• Owners of properties that become vacant during foreclosure: The owner or lender would have to follow the city's separate vacant building registration rules if the property becomes vacant after being registered.
• Department of Buildings: It would run the foreclosure registry, create the registration form, set rules, publish fees online, and could hire outside vendors.
• Owners of structures registered under Section 14X-12-1205: The fee section for these registrations would be changed, with the text listing a $700 initial fee and renewal fee figures of $700 and $350.

What changes

• Lenders must register a property with the Department of Buildings within five business days after starting a foreclosure.
• Registrations last six months and must be renewed until a judgment is entered or the foreclosure case ends.
• Each registration must list the name, street address, and phone number of an authorized agent for the lender.
• Lenders must tell the city within five business days about changes to their information, the end of the case, or a transfer of the property, including who took possession.
• Government agencies, including the City and Sister Agencies, are not counted as lenders under this rule, and properties already registered under certain other city sections are exempt.

Money

• Lenders pay the city a $700 initial registration fee for each property in foreclosure, starting January 1, 2027.
• Lenders pay $700 for each six-month renewal of a registration.
• Lenders that register late or pay late are charged a late fee of 10 percent of the registration fee for every 30-day period, or part of one, the property is not registered.
• Starting January 2028, the fees go up each January with inflation (CPI), by up to 2.5 percent a year, or less if the Commissioner decides that is enough to cover costs.
• The fee section for structures registered under Section 14X-12-1205 would be changed, listing a $700 initial registration fee and renewal fee figures of $700 and $350.

Where: 36th Ward

When: January 1, 2027