Your Rights when your Rental is in Foreclosure

While homeowners and other players in the housing and mortgage industry have been covered in detail in the news during the recent financial crisis, one group of society that has been neglected is renters. Many have been forced to find somewhere else to live because their landlord’s property went into foreclosure. Evictions among renters wants something covered very much in the evening new but it is a reality that is happening to innocent families who are suddenly left with no where to live.

But now, renters who are facing evictions due to their landlord’s inability to pay a mortgage, have some rights. If you are renting, what you don’t know can hurt you so pay attention to the following tips if you should ever find yourself in the unfortunate position of eviction due to foreclosure. In May 2009, President Obama signed into law a national standard for tenants facing foreclosure. Here are some details of that law:

If you have a valid lease, you can not be forced to leave the property when it is in foreclosure until the lease officially expires. The only exception is if the property is purchased and the new owner plans to move into the property before the lease expires. In this case, the lease will be terminated on the sale dates and the tenants must receive 90 days notice of the intention to move in by the new owners.

If you lease is to expire in less than 90 days after the property is sold, you still have the full 90 day time period to leave the property.

If you are renting without a lease, there will still need to be a 90 day notice given to you as the tenant.

If the state you live in has a law that require notice time longer than 90 days or other amounts of protection for tenant of rentals, it essentially overrides the federal law. Take the time to understand the individual laws in your state and how they apply to your situation. For more information, contact the tenant organization in your area if one is available.

If you reside in Section 8 or other subsidized housing programs, the new law still applies to you. Do not allow anyone to try and tell you different. You can contact local tenant organizations or an attorney in your area for further advice.

As a tenant, you still have an obligation to pay the rent in full until you vacate the property. If ownership changes before you leave, be sure you are paying rent directly to the new owner. Not paying rent, regardless of foreclosure circumstances, opens the door for you to be legally evicted.

Make sure the new owner, even if it is a bank, keeps up with regular maintenance and repairs per your lease agreement. If there is nothing being done, keep making phone calls and written contact to insist on the property maintenance.

When you plan to move out, make sure you receive your security deposit back, if applicable.