In the News

Mike Kurtzon Quoted in Law360 Article on Chicago Foreclosure Ordinance

Acknowledges Decree Has “Noble Intention” But is Likely to be “Counterproductive”

September 23, 2013

Michael S. Kurtzon, Chicago-based member in Dykema’s Real Estate Practice Group, is extensively quoted in an article—“Chicago Foreclosure Ordinance Hampers Lenders”—published on Law360, a  leading online provider of business law news and analysis, in its September 18, 2013 edition.

In the article, Kurtzon notes that the Keep Chicago Renting ordinance, designed to keep entities that foreclose properties from evicting tenants, could severely restrict lenders from investing in low- and medium-income housing projects.

“This ordinance has a noble intention,” says Kurtzon, “but I think the effect is going to wind up being counterproductive.”

Kurtzon goes on to observe that to avoid the costs and complications that are likely to result from this new ordinance, lenders planning to foreclose on residential property in Chicago would be smart to avoid obtaining a judgment of foreclosure altogether by using a receiver, whose services are not subject to the ordinance. He reports that a receiver can perform many of the tasks of a lender—such as receiving rents, operating the property, evicting tenants who don’t pay rent—while ensuring that property title is never transferred directly to the lender.