Do I Pay Rent if My Apartment Is Being Foreclosed?
Your rent obligation is to your landlord and should be paid even if the apartment is under foreclosure. It is up to the apartment owner to resolve the foreclosure issue. Meanwhile, you are legally responsible for paying rent as long as the apartment is available to you. It is likely that the bank or mortgage company will hire a management company to oversee your apartment if the foreclosure is completed. In the meantime, you should keep paying your rent as usual and keep copies of all your receipts or cancelled checks.
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Bank Notification
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The bank will notify you if the original landlord no longer owns the apartment, according to consumer website LifeTuner. Until then it is important to continue paying your rent because by not making payments you will void your lease and be subject to eviction. You simply cannot expect to live free in the apartment, and arguing that you believed you did not have to pay because of the foreclosure won't hold up in court.
No Immediate Eviction
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You won't have to worry about being evicted after the foreclosure as long as you have paid your rent and adhered to the terms of the lease agreement. Nolo.com reports that federal law protects you from being evicted after a foreclosure. Under most circumstances you have the right to remain in the apartment until your lease expires. Tenants with month-to-month leases must be provided with at least a 90-day notice that their leases are not being renewed, under the terms of the "Helping Families Save Their Homes Act," enacted in 2009. The law does allow for your long-term lease to be terminated with 90-days notice if the apartment is purchased in foreclosure by a new owner wanting to move into your apartment. This scenario is more likely for a single family home than an apartment in a large complex.
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Bank Relocation
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LifeTuner reports that the bank may offer to help you find a new apartment and will cover the cost of relocation. This can happen when the bank or a prospective buyer has other plans for the property, such as tearing down the apartments and using the land for something else, or converting the apartments into condominiums. In that situation, you should freely negotiate for an agreement that is favorable to you, and includes free perks such as a couple months free rent at your new place.
Legal Advice
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Free legal advice for your situation may be available through a local Legal Aid office. The nonprofit organization offers free legal services for people unable to pay. A local charity such as the United Way can offer contact information for free legal services. Contact a real estate attorney if you don't qualify for free assistance. An attorney may offer a discounted initial consultation if you have just a few general questions.
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