Do I Have Rights as a Tenant if the House I Lease is Going into Foreclosure?

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‘I just found out that the house I’m renting is going into foreclosure, and I have to move out next month. Do you have any advice, and what rights do I have as a tenant?’

[NOTE: Articles and answers on DearEsq., while written and published by lawyers, do not constitute legal advice, and no attorney-client relationship is formed by your reading of this information. You should always consult with an attorney for any legal situations.]

You didn’t mention why you have to move out next month. If the current owner of the property is terminating your rental, then you rights are the same as under ordinary landlord-tenant law in your
state. Those laws vary considerably, so you should consult with an attorney familiar with your local landlord-tenant law to find out what your rights and options are.

On the other hand, if you are expecting to be evicted by the new owner, after the foreclosure sale, then a recent Federal law, the Protecting Tenants at Foreclosure Act, would probably apply. In most situations where you are a “bona fide” tenant, the buyer at foreclosure would have to honor the remaining term of your lease, or if you are month-to-month, give you 90 days notice before terminating your tenancy.

Again, you should check with a local attorney to ensure that none of the exceptions to that general rule apply to you. And it only applies to foreclosures through 2012 (unless the law is extended).



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Author: House Attorney

A house attorney has answered this question.