What rights do tenants have when the owner has let the property go into foreclosure?
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That's horrible! I'd start the proceedings to sue him in small claims court for your security deposit back, and the tenants might want to band together and hire a real estate attorney and try for moving expenses and punative damages (not in small claims). Moving is expensive and it's a hassle. That landlord knew he was taking your rental payments in bad faith if he wasn't paying the mortgage.
good luck with your situation.
Unfortunately there are not many options.
They could attempt to buy the house, the foreclosure could be set aside until they are able to complete a loan.
IF that isnt possible, that is one of the risks of being a renter. You are subject to being at the mercy of a home owner.
Good Luck
I believe BUT not sure you have to be given 30 days.. Your best bet is to call the bank that if foreclosing and ask.. I'm sure there are things you can do to recoop your loses.. I'm sure each state has different laws and ways of handling it.
Seems unfair since the tenants aren't at fault paying the rent. C the bank handling it &/or lawyer. Ask 4 more time 2 move. If that fails try 2 get 2 gether enuf 2 buy fr bank / new owner.
If your payments are up to date and you have a written lease they must give you a 30 day notice to vacate the premises under the Landlord Tenant Act of your state. You pay those 30 days and you move at the end of it. Effectively the lender will become the landlord once they acquire the property at the foreclosure sale and as such the lender is obligated to follow the Landlord Tenant Act of your state relating to your occupancy and rights under eviction laws under the act, even though the court will extinguish your rental agreement with the previous owner the law will require the lender as your new landlord to give you a 30 day notice on a month to month rental agreement which is what you will now be under.
Buena Suerte
It depends on who has ownership of the property right now. If the house was sold at sheriff sale and was transferred back to the bank or a third party, then the tenants no longer have any rights to stay in the property, due to the foreclosure.
If the tenants are paid up and have a valid lease in force, and the landlord still owns the property, then the tenants would not have to move without the notice required in the leasse. And if they've paid rent for a month and are being kicked out by the landlord before the month is up, then they should receive the unused portion of the rent back.
But if the bank owns the property now, the tenants will have to move out by the scheduled eviction date. If that date is in two weeks, then that is the date that they will have to be out, or else the county sheriff may forcefully remove them from the property.
One option would be to have the tenants attempt to purchase the property from the new/old owner. Whoever has ownership right now may allow them to remain living in the property until the sale is completed or their loan is denied. If they have the credit, down payment, and income to qualify to purchase the property, then they may want to talk to someone about getting a mortgage.
Hopefully that clarifies things.
ForeclosureFish
http://www.foreclosurefish.com/...
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