Can I Evict a Tenant While in Foreclosure?
Foreclosure of a rental property affects the tenant, old owner and new owner. Although the new owner of the property may wish to evict the tenant, there are legal restrictions in place to protect the tenant. The new owner has to follow certain guidelines to vacate the property.
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Notice Requirements
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President Obama signed the Protecting Tenants at Foreclosure Act in 2009, allowing rental leases to survive foreclosures. This means that the foreclosure does not erase the lease, and the tenant can live in the property at least until the lease ends. Even if the tenant only has a month-to-month lease, the new owner has to give him at least 90 days' notice before he has to move out. This is longer than the notice period in non-foreclosure situations.
Owner Wishing to Move In
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If the new owner wants to move in to the property, he doesn't have to wait for the lease to end to vacate the property. He can give a 90 days' notice even if the tenant's lease lasts longer. No such provision exists for new owners who want to vacate the space to rent out to someone else.
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Considerations
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If the new owner wants to resell the property, he may worry about losing sales opportunities due to the tenant living in the property. However, having a tenant who pays reliable rents may add value to the property. Empty properties often become vandalized and deteriorate due to neglect. With a responsible tenant, the property remains in good condition. Instead of evicting the tenant, the new owner may benefit more from hiring a property manager to ensure the property is well taken care of.
Cash for Keys
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If the owner wants the tenant to move out sooner, he can negotiate a deal with the tenant. Some property owners offer tenants money to move out by a certain date. This removes the need for an eviction, allowing the owner to save on eviction costs. The cash offer should at least cover the tenant's moving costs. Getting the agreement in writing protects both owner and tenant rights in case a conflict occurs.
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References
- Photo Credit The red house and key from the house image by ketrin from Fotolia.com
