Could i break my lease if the building is in foreclosure?
Question:
Answer:
no
at least, that is the case in most states [WHERE are you?]
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you need to google your state's/location's laws on this matter to get clarity.
example: texas [which i recently looked up for these pages].
in texas, the buyer in a foreclosure has to give tenants 30 days notice to quit [the foreclosure extinguishes their leases UNLESS the lease was written before the lien attached] BUT
BUT, if the tenant has breached the lease (by not paying rent, for example), the buyer need only issue a three day notice of eviction.
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you NEED to read the law in your area and carefully. in the texas example, the buyer is NOT responsible for your security deposit and you have to sue the prior owner {GL on that -- he's likely stone broke.}
similarly, if you paid in the last month's rent in advance, the buyer isn't responsible for that either.
which really sets you up to take a hit -- the foreclosure sale date and your rental month likely do not terminate on the same day.
GL
You can't in CA, the foreclosure has nothing to do with you at all. People can not be made homeless because of this, the bank has to assume the lease.
If the house is in foreclosure, you can probably move out with no adverse consequences. In the event the landlord wants to do something to prevent you from moving (keeping your deposit, etc.), you can claim "constructive eviction."
This means that the house is in some state that makes in unlivable. The fact that the you may get a knock on the door from the county sheriff to evict you is definitely a danger and one that you need to protect against. Consult an attorney about this in your state, but if there is something vitally missing from your rights as a leaseholder, then you can move out.
For instance, if the house did not have running water and the landlord refused to fix the problem, you could claim constructive eviction. Even though you did not miss any payments, the landlord "evicted" you by not providing basic necessities and ensuring your ability to enjoy the quiet use of the property. Same if the bank were to threaten to take the property back, sell it, and evict the tenants, which is what happens in foreclosure.
So as long as the building is in foreclosure, you can probably safely move out. If the landlord saves the house, then you may not have the same reasons for breaking the lease. If you plan to move out, start looking around now while you have a defense against breaking the lease.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
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