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What happens to renters when the landlord’s property is foreclosed on? Do they have any legal recourse to stay on the property if their lease has not expired?
I discovered your homepage by coincidence.
Very interesting posts and well written.
I will put your site on my blogroll.
Unfortunately, renters have virtually no recourse. Once the foreclosure becomes offical, the renter’s lease is then null and void. The renters have no right to continue to reside in the domicile. In fact, once the foreclosure becomes official, the landlord has no right to collect rent. Most of the foreclosures are taken over by banks, who do not want to become landlords. this is a big problem in Baltimrore and all accross the country.
Thank you for your comment Tony. Please feel free and come back and answer any questions on foreclosures and promote your site.
Yes they are right when they say renters do not have a lot of rights in this situation. However, If you are smart you will stay put as a renter even after the foreclosure. It takes quite sometime for the process to be completed and in the meantime you do not have to pay rent. In fact it might even get better. In some cases a realtor finally shows up to sell your place, discovers there are renters in the place and will many times offer you a “cash for keys” deal. they will give you cash to get out in so many days. Then you finally have to move. My neighbors land lord got foreclosed on. He stayed rent free for 8 months. At the end of that time, they came and gave him 1200 dollars to move within a couple weeks. It was a great deal. Good luck.
Question: What are the renters rights when a landlord gives you a
termination of tenancy 30 days prior to an expected Trustee Sale date? In this case the landlord knew about the foreclosure and of course is under no obligation to tell the tenant. Is the landlord trying to get ” cash for keys?” That is what it seems. What should be the tenants actions at this point?
If the tenant was given a legal 30 day notice to vacate then he should vacate otherwise face eviction