Tenants Rights in Foreclosure in Colorado

The Protecting Tenants At Foreclosure Act Of 2009 was designed to protect tenants from eviction.

Tenants in Colorado can be adversely affected if the landlord defaults on the loan. A landlord who fails to abide by the terms set forth in his mortgage loan agreement, may face foreclosure. This is a scary time for tenants, as they may face eviction.

History

Prior to May 2009, most tenants lost their leases when the landlord failed to pay the mortgage loan. Most states had rules that wiped out lease agreements if the mortgage was recorded before the lease was signed.

Significance

In May 2009, the Protecting Tenants At Foreclosure Act was signed into legislature and provided tenants with certain rights regarding foreclosure. As a result of this act, Colorado law states that tenants may remain in the rental property until the end of the lease. Tenants who rent on a month-to-month basis must be notified at least 90 days prior to being made to move from the rental property.

Considerations

Tenants in Colorado should be on time with all rent payments to avoid eviction after the foreclosure of the rental property. Tenants can contact the Public Trustee in the Colorado county they reside in to determine who currently owns the property. To be eligible for protection under the Protecting Tenants At Foreclosure Act, tenants must be paying fair market value rent.

References

• Brian Wess.com: Renter's Rights In Colorado
• Nolo.com: Renter's In Foreclosure: What Are Their Rights