It is an unfortunate reality that many individuals have had to go into foreclosure as a result of the economic downturn. Some people have been successful at paying down their mortgage by renting out extra rooms to increase cashflow. However, sometimes it is not enough and the property still goes into foreclosure. However, this creates a complex scenario where you and your tenants may have different rights going forward.
Much of the difference comes down to whether or not your tenants are “bona fide.” According to federal law, tenants are bona fide if they are not part of the immediate family of the owner/landlord, the lease was executed as an “arm’s length transaction, and they are paying a fair market rate to live there. If the tenants are not bona fide, they are not protected under the Protecting Tenants at Foreclosure act and will need to vacate the property within 60 days after receiving notice from the new owner. Bona fide tenants must vacate within 90 days after notice from the new owner.
As the previous owner/landlord, your rights are different. After the foreclosure, you may be served with a Writ of Possession that gives you 24 hours to vacate the property. The new owners may be interested in having you lease the property from them, allowing you to stay longer.
As you can see, these situations can be extraordinarily complex, so it would be beneficial for you to work with an experienced attorney that can file the necessary forms and fight for your rights and interests.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096.
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.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.