Can I Be Evicted by the Owner From a Home I am Renting If it Forecloses?

Foreclosure affects both the owner and tenant.

A foreclosure on a home that is being rented out to a third party can be a complicated legal position for the tenant. New laws protect tenant rights in these cases.

Significance

Though the renter may be current on his rental fees, the owner may not be able to fully pay her mortgage, resulting in a foreclosure. This proceeding takes the property from the owner and sells it to a new, paying owner to pay the bank's loan on the land. This new owner may or may not want a tenant on the property.

Effects

In the Protecting Tenants in Foreclosure Act, the tenant legally must receive a 90-day written notice to move from the property, assuming there is no lease. If there is a lease, the tenant is allowed to stay until the end of the lease; then the new owner can decide if she wants to renew or dissolve the agreement.

Interesting Fact

The Protecting Tenants in Foreclosure Act was signed into law by President Barack Obama in response to the housing crisis that occurred in 2008 and 2009.

References

• Legal Services of Greater Miami, Inc.: The House I am Renting is Being Foreclosed