Renters Dealing with Foreclosures
Renters have right when the property they are renting goes into foreclosure. If the renter must move out prior to the end of the lease, it’s possible to sue a landlord for breach of contract.
Here are some suggestions for renters:
-Talk directly with the lender or new owner if the first time you’ve heard about the foreclosure is through the lender or new owner and figure out an agreeable date to move out of the property.
-Make sure to keep paying your rent until the foreclosure is seen as final. Otherwise, the landlord can evict you for failure to pay your rent and if sent to court, it can make it hard to rent another property.
-Unfortunately, you do not have a legal right to continue living in a foreclosured property.
-You are entitled to receive your security deposit, based on the terms of the lease after the final stage of the foreclosure.
-Banks/Lenders or the new owners of the property are not allowed to remove tenants without a court order and that is including the tenant’s belongings.
