Can I be evicted if my landlord goes into foreclosure?


Question:
I understand that when a property changes owners, the new owner has to honor all pre-existing leases. But what happens if a landlord loses his/her property to foreclosure? Can the bank kick everyone out, or do they have to honor the pre-existing leases? Would you get your security deposit back?

Answer:
Typically you have to get in line to sue previous owner for defaulting on your lease - if they were just forclosed upon and lost their property, they may have all the blood of a turnip for you to squeeze out of them!

SOME banks want to keep tennants, but (at least in CA) they don't have to except in special cases of low income housing, gov. housing etc.
I am pretty sure they can evict.
They have to honor the existing lease. Some banks do not like to take properties with tenants and they may offer you cash to move. The law firm handling the foreclosure will contact you when they take title and will work with you try to assist you in moving or tell you where to pay your rent. If it is a single family property, they will be more likely to want to sell it vacant. If it is a multi-family, intended to have tenants, they will want to keep the current tenants for a higher sales price.

P.S. in many states the foreclosure process takes almost a year so your lease would be up anyway. For instance, most states require a notice of default and a 30-90 day waiting period prior to the commencement of a foreclosure. Then, if there is a judicial process, that takes another 90-180 days.
They absolutely can evict you. And your deposits will have to be refunded through the last landlord or who ever your deposit was made out to. Good luck!
I believe they honor leases, but the new owner can either renew the lease, or kick you out in 30 days.
When a property changes owners the security deposit is transferred to the new owner. If both parties entered into the lease in good faith, then the lease should be honored by the bank when they foreclose.

I am assuming that you are renting the entire property from the landlord. If you are renting just a room, you might be out of luck, because the bank might evict everyone.

In any situation you should get your security deposit back, because it is part of the lease.
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