Tenant’s Rights When Landlord Foreclosed

tenant's rights when landlord foreclosed

English: Bustour touring foreclosures in San Diego (Photo credit: Wikipedia)

Tenant’s Rights When Landlord Foreclosed

You’ve been a good tenant.  Rent is paid on time each month.  You haven’t painted the premises purple.  No loud parties late into the night to disturb the other tenants.  No damage.  You’ve lived up to the letter and spirit of your lease.  But your landlord is losing the house to foreclosure.  What to do?  Don’t panic.  Your lease is still just as valid as ever with one notable exception.

Tenant’s Rights when landlord foreclosed spelled out

If the property you live in goes into foreclosure you still have rights as a renter.  Under the Protecting Tenants at Foreclosure Act of 2009, tenants rights when landlord foreclosed are sopelled out as follows:

1. All tenants are entitled to 90 days notice before being evicted due to foreclosure.
2. Existing leases will be valid through the end of the lease term. If the lease ends in less than 90 days’, you will have a minimum of 90 days notice prior to eviction.
3. There is an exception: If the new owner plans to use the property as his or her primary residence, you may have to vacate within 90 days (even if the lease extends longer than that period.)

Make Your Concerns Known to the Bank

It’s in the bank’s best interest to keep the premises occupied during foreclosure proceedings.  Empty properties have a way of declining quickly.  It may or may not be necessary to get serious about planning to move.  Maybe you like the place. You could even be in an enviable position to buy it if that’s what you want.  You can save a lot of money by buying a house from a bank before the bank lists it with a broker.  This is a smart way to use inside information before word gets around. Let the bank know. If they want you out as soon as possible at least you will have sufficient time to plan.   After all it doesn’t make any difference to you who you pay.  If the bank’s position is that it is fine with you staying, the foreclosure won’t make any difference to you at all.

the pessimist sees the disaster in every opportunity.  the optimist sees the opportunity in every disaster.
Enhanced by Zemanta
The following two tabs change content below.
After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

Latest posts by Edward St. Onge (see all)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>