When A Landlord Defaults

Current financial issues have many home owners facing foreclosure on their homes. Even as the Government steps in with efforts to assist these homeowners, many are still losing their houses. But what if those homeowners are landlords with tenants in their property? What happens to those tenants? Contacting a real estate attorney should be paramount.

Tenant Rights

The issue of tenant rights in foreclosure situations can vary depending upon where in the country the property is located. Many renters aren’t even thinking of the fact that they may lose their home due to their landlord’s foreclosure situation. Wise tenants will research their rights in advance, or consult an eviction attorney, in case they find themselves in a situation where they may need to contest an eviction.

News reports share that at least seventeen states require that a tenant be provided notice when they'll be evicted due to foreclosure actions. Additionally, twelve states call for tenants to be named as parties to foreclosure proceedings. This is to provide for actions to terminate the tenancy or to provide the new owner with immediate possession rights.

Tenants shouldn’t automatically assume they will have to leave their rental if the property is in foreclosure. Depending on the tenant laws in their state, renters may be able to continue to rent even after the foreclosure process has concluded.

According to a report from the National Law Center on Homelessness & Poverty, there are three general themes each state falls within regarding the rights of tenants in foreclosure actions.

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