Renter's Rights in Foreclosures
Lease agreements that give tenants a right to remain on property for a certain period of time can survive a foreclosure during the lease term. Month-to-month tenants, however, have the right to remain in their property for 90 days after the foreclosure.
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Generally
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A tenant's rights when the landlord is foreclosed on depend on what type of lease agreement the tenant has.
Types
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Some tenants ren property for a specified period of time called a lease term. Other tenants are simply occupying property on a month-to-month basis with no guarantee regarding the lease term.
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Time Frame
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If a written lease agreement exists, the tenant has the right to remain until the lease agreement expires. If the tenant is simply a month-to-month tenant, then the tenant has the right to stay on the property for 90 days after the foreclosure.
Exception
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Even a tenant with a lease term, however, may have to leave within 90 days after the foreclosure. If the new purchaser of the foreclosed property intends to occupy the property as primary residence then the new owner has the right to evict the tenant 90 days after giving the tenant notice.
Warning
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One thing for tenants in foreclosure to watch out for is who should receive rent payments. If the mortgage lender sends notice of the right to receive your rent check, then you should send rental payments to the bank, not your original landlord.
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