Following months of negotiations, the IBA and proponents of Senate Bill 1602 – which addressed only tenants’ rights – agreed to legislation that also addresses many concerns of credit bidders and other purchasers of foreclosed residential properties. The agreed language was placed onto Senate Bill 56, which passed both chambers in the final three days of session. With respect to tenants, the legislation imports into Illinois law key provisions of the federal Protecting Tenants at Foreclosure Act of 2009 (PTFA), requiring successors-in-interest of foreclosed properties to: (1) honor the full term lengths of bona fide leases, and (2) provide tenants with bona fide leases at least 90 days’ notice before their right to remain in the property will be terminated. For credit bidders and other successors-in-interest, the legislation adopts the PTFA’s strict standards for bona fide leases and establishes for the first time a clear set of rules as to: (1) when a tenant may enter into or renew a bona fide lease after a foreclosure lawsuit has been filed, (2) the permissible lengths of those leases, and (3) the treatment of bona fide oral leases entered into at any time. In addition, the provisions in SB 1602 regulating “cash for keys” offers were eliminated in SB 56. The agreed legislation will make it much more difficult for squatters and others to fraudulently assert lease rights in foreclosed properties, while providing much-needed guidance to all successors-in-interest of foreclosed properties, as well as to their legitimate tenants and the courts.