Tenant Protections Facing Foreclosure
- Regardless of the new owner’s actions, one of the easiest ways you can protect yourself is to continue paying rent. Before the foreclosure, you owe rent to your original landlord. After the foreclosure sale, the new landlord should send you notice, and you will begin paying rent to him. Failure to pay rent gives your landlord cause to evict you earlier than he otherwise might be able to. If you have trouble contacting your new landlord or are not sure what to do about rent, contact an attorney for advice.
- The federal Protecting Tenants at Foreclosure Act of 2009 establishes rules for the minimum notice a new landlord must give prior to evicting you after foreclosure. If you have a qualifying lease entered into before foreclosure, you are generally entitled to stay in your home for the remainder of your lease term -- unless the new owner wants to move into your home. In this case, he must give you 90 days’ notice before asking you to leave. If you do not have a lease with a set term, you are a tenant at will. In this situation, you are generally entitled to 90 days’ notice before the start of eviction proceedings.
- The eviction process itself serves as a protection if you are a tenant facing a landlord's foreclosure. Your new property owner cannot force you out himself or change the locks on your home. Instead, he has to follow the eviction rules of your local jurisdiction. This involves filing papers in court, giving you time to respond, and having a hearing before a judge. Only after a judge approves an eviction can the new property owner set a date to force you to leave your home.
- If you have a valid lease, but the new owner decides to move into your home and terminate your lease early, you may be able to sue your original landlord. This generally happens in small claims court, where you can request that the judge award you damages for the cost of finding a new place to live, as well as for moving expenses and certain other costs.
- The laws concerning eviction and foreclosure vary depending on your location and your specific situation. If you have questions about your rights as a tenant, check with an attorney.