Renter’s Rights in Foreclosure

Foreclosure rates across America are higher than they have even been before. Although most people only hear about the owner of the home being affected by foreclosure, there are a number of times when tenants get stuck in the middle. With foreclosure rates at their all-time high it is crucial that you learn and understand what rights you have as the renter. Even though you are only a tenant residing in the property, many times you will be affected as well is foreclosure strikes. This will eventually cause you to have to pack your belongings and move somewhere else.

Once the owner of the home stops paying the mortgage for a few months (depending on the state you are located) you will receive an eviction notice to leave the property. But even if you end up receiving this notice be aware that you still have rights. First off by law they are required to either formally hand you this notice or post it on the property twenty days before the eviction occurs. If you have the feeling that your landlord has just been taking your money and not paying the mortgage, you can go online and check the foreclosure listings in your area. Homes that are going into foreclosure are a public record anyone can see.

Depending on which state you are located, your lease may protect you from being evicted from the home. If the home goes into auction and is sold to someone else, by law, they must continue to honor the lease agreement. You can actually look this up yourself by simply calling your municipal government office. If the place you reside is also a part of the subsidized housing programs, you may have even more rights as to what happens. Again to find out more about this please check with your local government agency.

As the renter it is important to completely understand your rights before you get into this situation. If the home does go into foreclosure the person who purchases the property may be eager to get you to leave the home. Many times the new owner will trick the tenant into believing the lease is no longer void. But if the renter has studied their rights they will know that the lease is indeed valid and they cannot be forced from the home. Unless of course a formal eviction is served.

Until a formal eviction has been served, the person who purchased the property cannot legally remove your belongings, change the locks, or turn off any of the utilities. Contact your attorney and local sheriff’s dept right away if this happens. Another common concern tenants have with foreclosure is if they will get back the security deposit that they paid. Unfortunately, if the home is has a new owner they are not responsible for repaying the deposit. The only way you can try to claim this money is if you pursue legal actions against your landlord.