Tenants Rights When the Property is in Foreclosure

If you are renting a property and the landlord defaults on his loan, your property can be foreclosed on leaving you with no place to live. This is happening more and more as foreclosures are rising. Most of the times a lease will not protect you when this happens. You lease can be cancelled and voided leaving you evicted.

If your landlord is not paying the mortgage on the property, the bank or Mortgage Company can legally foreclose on the home as if you weren't even renting the home. Once you give that money to the landlord you may think that he is paying the mortgage but sometimes they don't. You may not even know that the home is in foreclosure till the very end. Sometimes you will be paying the landlord who isn't paying the mortgage.

If the bank takes back that property, you may not have to pay the landlord since he is no longer the owner of the property, the bank can force you to move though. If you have to move because the property is in foreclosure you can get back your security deposit from the landlord if you paid one to him.

You may want to contact an attorney if you are living in a home that is being foreclosed to see what your rights are in that state. Your lease is a contract that you have with the landlord and may contain a clause in it about what will happen if the property is foreclosed on.

If you are evicted because of the home or property being foreclosed you probably won't have any defense, they can give you 30 days notice to move, and then you will have to get your security deposit back from the landlord. If you are in this situation you may be able to sue the landlord that you had the lease with for moving costs, and fees associated with moving before your lease is up. This can be better advised by an attorney.

But sometimes if you're in an apartment building or condo, you will simply just start paying rent to the new owners. Every situation is different. If you have a new landlord and didn't have to move but get a new lease you will want to make sure it is in writing about your deposits that you have paid. If you don't you may not get back your deposit when you move.

More tenants are finding themselves in this position as more landlords are losing their properties to foreclosures. Consulting an attorney can protect your rights as a tenant.