MDK Client Alert: Illinois Enacts New Law on Unlawful Occupants

Owners of real estate owned (REO) property in Cook County, Illinois, have long faced a recurring challenge: discovering a property is occupied after judgment, initiating the eviction process, and—too often— addressing former occupants who re-enter the premises after removal. Historically, remedies for this situation were limited. Law enforcement frequently referred owners back and forth between the police and the sheriff’s office, leaving the only recourse to be filing a new eviction action, repeating months of costly and time-consuming litigation.

A recent change in Illinois law will significantly alter that landscape. In July, Governor JB Pritzker signed Senate Bill 1563, amending the state’s Forcible Entry and Detainer Act. Effective January 1, 2026, the Act will explicitly state that nothing in the eviction statute should be interpreted to:

• Prohibit law enforcement from enforcing the offense of criminal trespass, or

• Interfere with the ability of law enforcement to remove persons or property from premises when a criminal trespass has occurred.

This change is designed to give law enforcement the authority to act more directly in cases of unlawful re-entry, potentially eliminating the need for a second eviction process. While it remains to be seen how consistently local jurisdictions will pursue criminal trespass charges, the amendment represents a meaningful step toward reducing unnecessary delays and expenses in regaining possession of REO properties.

MDK is available to assist with all aspects of your REO portfolio management, including navigating the evolving legal tools available to remove unauthorized occupants. For more information on how this change may affect your operations, please contact our team.