Foreclosure and Tenants
I have paid my rent to my landlord every month. Today I found out that my landlord has not been paying the mortgage and the house has been foreclosed upon. I have nine months left on my lease. What will happen to me now?
On May 20, 2009, President Obama signed a new federal law protecting tenants when the
property they rent is sold at a foreclos sale, The Protecting Tenants at Foreclosure Act
(PTFA). The Dodd-Frank Wall Street Reform and Consumer Protection Act extended the PTFA
protections until December 31, 2014. The Protecting Tenants at Foreclosure Act is a federal law
but it applies to state court eviction proceedings. Under this new law, the tenant’s lease does not
property has a lease with nine months remaining, the new owner cannot evict the tenant until the
remain until the end of the lease term. The onlexception is if the unit is sold to a purchaser
who will occupy the property as their residence and, even in thisse, the tenant is to receive
ninety (90) days notice before hving to vacate. If the existin lease has less than ninety (90)
days remaining before it expires, the tenant musstill be given a ninety (90) day notice before
having to move.
I purchased a foreclosed property with a tenant living in the home. Does the tenant have to pay the rent?
Following foreclosure, the tenant must payrent to the new owneror face eviction. The
rent owed is the amount stated inthe lease with the old owner. If the tenant does not pay rent,
the landlord can go to court to have the tenant evicted without giving the ninety (90) days notice.
The home I rent was sold at foreclosure. I do not have a written lease. I have been told I have to move immediately, is that correct?
No, at a minimum you should be given a 90-day notice before you haveto move. If you
do not have a written lease, you are a tenant-at-will. The new owner is now your landlord and
must give you a ninety (90) day notice before yohave to vacate. This rule also applies to a
month to month tenancy.