When A Landlord Defaults (Continued)

First Theme

The first theme requires that the tenant be provided some sort of notice prior to the foreclosure proceedings and/or be named as parties to the actions themselves.

Second Theme

The second premise is one where the process of foreclosure and the process of eviction are independent of each other. States that use this process have the least tenant-friendly rules and regulations.

Third Theme

The third framework is a mixture of the previous two themes. States using this method use the foreclosure process to address the tenancy of the renter after foreclosure; however, they don’t necessarily provide renters with rights in the actions. This method is often unclear regarding the rights of possession after the foreclosure proceeding.   

Tips for Renters

After consulting a real estate attorney or eviction attorney there are some things tenants can do when they find out their landlord is involved in foreclosure actions:

• Request that your landlord permit you to move out and end your lease early.
• If you make any agreements with your landlord, ensure these are in writing.
• Ensure your landlord has your future contact information should he allow you to vacate your lease early. He/she will need it to send you your security deposit.
• Continue to comply with the terms of your rental agreement until it either ends normally or your landlord agrees to terminate the lease early.
• Seek legal representation from an experienced tenant rights lawyer.
• Contact your local legislators to seek assistance and to let them know this situation is a problem in their constituency.  

Other Considerations

• If the new owners or bank contacts you directly, try to work with them to reach a mutually acceptable move out date.
• Do not pay rent to a new owner unless you have reached an agreement in writing about your rights to remain on the property.
• In most cases, new owners cannot lock you out of your rental unit; they will need to comply with eviction laws and procedures.
• Use the foreclosure and/or eviction time to find another residence.
• You can sue your previous landlord for damages if you had to move early or they didn’t refund your security deposit; however, since they are already in foreclosure with monetary problems, it may be difficult to collect.
• Prior to renting, check the credit of your landlord if it is legal in your area.