Renters protection on a foreclosed home...

Did you know that you have government mandated protection if you are renting a home and the home is foreclosed on?

Below is just a snapshot of those protections...

Can the person who buys the home at foreclosure make me leave right away?
No. The new owner needs to end your tenancy by giving you a 90-day notice to leave and you may be able to stay until the end of the lease if the new owner is NOT going to use your home as their primary residence. But if they ARE going to use it as a primary residence the new owner only has to give you a 90-day notice to leave after they become the owner, even if you have more than 90 days left on your lease.
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Some renters that I have spoken to believe that if a home is in foreclosure or is foreclosed upon, they no longer are obligated to pay rent. But, unless such terminology is in your lease, if you do not pay your rent, the new owner only has to give you notice in accordance with the state statutes and may then proceed with the eviction process.
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The "lease" referenced in this act must be a Bona Fide lease...here is info about what constitutes a Bona Fide lease:

• A bona fide lease or tenancy is one where the tenant is not the mortgagor or a member of the mortgagor’s family, the lease or tenancy is the result of an arms length transaction, and the lease or tenancy requires rent that is not substantially lower than fair market rent...

So, if you are a tenant living in a home that is going into foreclosure or the foreclosure process has already started, you do have protections that start once the home is foreclosed upon...but remember: you still have to live up to all of the terms and conditions of your lease.

If you are a tenant OR a landlord in this situation...give us a call if you have any questions.

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