Are you a month-to-month tenant renting a home that is in a pre-foreclosure and wondering what will happen next? Although these answers are generally more accurate when looking directly at your case, here are some of the basic facts that can hopefully paint you a clearer picture of the next steps.
First off, one of the most important things to know is the “Protecting Tenants in Foreclosure Act of 2009”. Before President Obama signed this act, most renters would lose their leases after a foreclosure; however, this legislation states that leases can stay intact.
There are two options available; the tenant can either stay until the end of their lease or month-to-month tenants are entitled to their lease for 90 more days before they are required to move out. This is a great benefit to tenants because this 90-day notice period is longer than any state’s non-foreclosure notice period, this gives the tenants time to find another place to live.
Here is some other important information that you should be aware of. If the buyer intends to live on the property, then they have the right to terminate the lease with a 90-day notice. In these cases, if state legislation is more generous to tenants, federal law will not overrule the state law.
In addition, those who live in a city with rent control “just cause” eviction protection are also protected. A change in ownership does not automatically justify a termination, and the fact that the change happened through a foreclosure does not make it any different. Tenants in these cases should look at their city’s ordinances list of allowable, or “just causes” for termination so they are aware of where they stand.
If you find yourself in this situation and you are unsure what do to, don’t be afraid to speak to an attorney. They have the knowledge and means to help you figure things out and they will help you better understand the whole process and each individual step.
Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 866-200-4646.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.