Foreclosure Tenant

Under common law, a renter owes all rent payments to the owner until the property is sold. A foreclosure does not terminate a landlords rights to collect rent until the property is sold in either a court-supervised or private sale. The rules vary by state. Therefore, you must continue to pay the landlord until the property is sold to another party.

Foreclosure and a lease

Under common law, a foreclosure terminated a lease. However, this rule changed when President Obama signed the "Protecting Tenants at Foreclosure Act of 2009" on May 20, 2009. Before this date, renters lost their leases upon foreclosure. The rule in most states was that if the mortgage was recorded before the lease was signed, a foreclosure wiped out the lease (this rule is known as "first in time, first in right"). Because most leases last no longer than a year, it was common for the mortgage to precede the lease and destroy it upon foreclosure.

After May 20, 2009, leases survive a foreclosure, which means a tenant may stay at least until the end of the lease. Month-to-month tenants are entitled to 90 days' notice before having to move out.

Here, if you have a lease you may stay until the end of your lease term. If your lease agreement spells out the terms for a month-to-month lease, then then if there is a foreclosure then you have 90 days to quit the property.

I hope this information helps you Find. Learn & Save.

Best,

Bill

bills.com