Who Do I Pay My Rent to If They Foreclosed on My Rental Condo?
While it's unsettling to be a tenant in a foreclosed home, you won't need to move immediately. Both federal and state laws protect your right to continue living in accordance with the terms of your lease or rental agreement. However, it is important that you continue paying your rent each month and that you pay attention to written instructions as to where, and to whom, you should make your payments.
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Legal Protections
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The Protecting Tenants at Foreclosure Act of 2009 is a federal law that guarantees your right to remain in your rental home for the duration of your lease, providing that you continue to pay your rent as agreed. If you are a month-to-month tenant, you'll have at least 90 days before you have to move, although you'll still be expected to pay rent. In addition to federal law, some states have tenant protection laws that may offer you additional time to remain in your home. In all cases, however, these laws only protect rent-paying tenants. By not paying your rent, you risk eviction.
Following Instructions
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Once your building goes into foreclosure, both federal and state laws require that tenants be provided with notice of the proceedings. In some cases, your landlord and the bank that holds the mortgage note are obligated to give you written notice of what is about to happen. The information you receive should give you instructions as to where you should send your rent payments. If there is any uncertainty about paying your rent, contact the lender directly to confirm the instructions that you receive. This information may be posted in your building, or it may come in the mail. Pay attention to any notices that you receive. If you don't, you could end up sending your rent to a landlord who is unlikely to forward it to its proper recipient.
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Record Keeping
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Foreclosure is a chaotic time for tenants, banks and both the new and previous owners of the building. Adding to the confusion is the fact that some banks and new owners may be very eager to push old tenants out, and will use any excuse to evict you. Keep up your rent payments to avoid any risk of losing your home. Make your rent payments traceable by paying with a personal check, bank check or money order. Avoid paying your rent with cash, as it can be difficult to prove in court that you actually made the payment. For greater security, mail your rent payment via certified mail with return receipt requested. If there is ever any question as to whether you paid your rent, this documentation can help you demonstrate good faith in your efforts to pay your rent.
Getting Legal Help
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If the bank or the building's new owners attempt to intimidate you into leaving, if they refuse to make necessary repairs, or if they make it difficult for you to pay your rent, seek legal help. Legal aid societies and local tenant unions can often be of great help to tenants in your situation, and can advise you of your rights. In some cases, they may also be able to intervene, and even go to court on your behalf. Talk to other tenants about your issues. If they are having the same problems, you may be able to build a stronger case by working together.
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