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Tenant Foreclosure

By PTMidland

We found a foreclosure notice on the front door of the house we are renting.  We just entered the two-year lease on October 1, 2008.  We suspect that the landlords were already in default when they entered the contract.  The notice indicates that the property will be sold on January 6.  What right do we have if any?  we have copies of the leae, and receipts for our rental payments.  If someone buys the property, do they have to honor our lease?  Can we be evicted?  Is there any minimum amount of time we would be given to move?  Can we get our deposit back, if not from the landlords, from the entity that purchases the property?

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Edited on: Saturday, January 22nd, 2011 7:24 pm
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3 Responses to “Tenant Foreclosure”

My response: (We welcome stories, examples, explanations, answers and a touch of your personality)
 

Landlord

December 17th, 2008 6:48 am

This is a big problem facing the rental industry right now. When landlords foreclose on their rentals it creates a BIG problem for their tenants. Normally, when a landlord sells a rental property the lease agreement HAS to be honored by the new purchasers. However, the exception to this rule is a foreclosure. Banks are not held to the same legal statute that a the rest of us are. The bank has right to evict you, and will.
What happens when a landlord forecloses?
1) Tenants are evicted by bank (Lease agreement not applicable in this situation)
2) Bank cleans and prepares property
3) Bank list property for sale (Usually at a major discount)
4) Property is sold to another buyer.
What happens to the Tenant?
1) You are evicted
2) Deposits are not always returned
I suggest seeking legal help. You can hire an attorney or you can file a complaint through the Rental Protection Agency. The RPA Mediation will cost you $35 to file a complaint, probably well worth it. Hopefully they can extend your stay or arrange to allow you to live rent free in order to cover the deposit cost. You are in a bad situation, as are many renters.

anonymous

December 23rd, 2008 8:04 am

I suggest filing a complaint with the RPA. The bank will probably not even respond to you.

alandloard

August 6th, 2012 10:45 pm

In Ca. If the bank buys the property. They will offer money to the renter up to $5,000.00 to relocate

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