Can a mortgage company evict a tenant of a property that has gone into foreclosure without a 30 day notice?


Question:
I have been renting the home I am in for 2 years. I have learned from my property manager that the landlord has filed for BK and there lender is going to foreclose soon. If the lender takes over the property, can the lender demand that we vacate the property or do we have 30 days? Also I have been told that if the lender serves an eviction notice to us, they can attach this information to our credit report. Is this true?

Answer:
It really depends on the state you live in. In my state, a sherriff comes to the property, kicks you out, changes the locks and tells you that you have 10 days to contact the authorized bank represenatitive to let you in the property to remove your belongings (whether you are a tenant or the owner). So 30 days isn't a given, it could be less. (most people know they are going into foreclosure and notices are sent in the mail, at least here)

Also, I don't really think they can attach anything to your credit report, if you are not on the actual loan. I am not 100% sure if there is something else going on where you live, but it wouldn't make sense for them to be able to do that. If you have proof that you have been making your rent payments, you should be fine.

You need to confirm with the property manager that this is really going to happen and find another place to move while you still have the ability to go in and out of the home freely. There is no sense in waiting around if you have this notice. But you should find out your state's laws on the landlord's responsibility to you as the tenant if they get foreclosed on.
To be lawfully evicted in the state of Maryland a sheriff must first post a notice of eviction (30 day notice). Check with your local housing authority also call the mortgage company and ask. Did you know many mortgage companies can help you avoid foreclosure by doing what they call a workout? They allow you to set a plan, a legally binding document stating that at the end of your mortgage you owe the back amount or pay the back amount over the course of your mortgage.
The lender's position is likely superior to your rental contract so they can evict. They will file a formal notice but they might contact you first.

You can try contract them. They can not discuss the details concerning the borrower. Once they become the owner then they can talk with you directly about your tenancy. If the property goes to auction (rather than being sold before) it could be that the lender never becomes the owner. Some other buyer will then be your landlord.

Be open to moving. I would also review if you should be paying rent to the present owner. It might be to your advantage to send the payment to the bankruptcy trustee or directly to the lender.

A lawyer would know better what your rights are.
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