I am a renter but recently found out my home is going into foreclosure. Is there a way to keep my home?


Question:
My lease is not up until January 2007 and I do not have the monies to just move because my landlord decided not to pay the mortgage. I need help, what should I do? Is it possible to purchase the home even if my credit isn't perfect?

Answer:
The foreclosure has nothing to do with you. Pay your rent to the receiver and move out in January
Approach the lender and ask. Also ask your current landlord if their loan is assumable.

In most instances, a tenant does not have to move simply because of a foreclosure, but some states do require that a tenant be a named party in the action so that they can be evicted.

Your best bet would be to find out what the law is in your area.
No, just sue your Landlord for damages for breach of the lease.
I don't think the foreclosure will be completed by Jan 2007. You should be able to pay rent to the bank until you move out. Do check on buying the property. You may get a great deal on it.
Foreclosures don't move that fast. You probably have three months. To reduce anxiety, call the lender who is foreclosing & ask them if you can continue to rent from them. They'll probably let you.
You can stay at least until your lease is finished. Your lease agreement doesn't change just because ownership changes. So, be prepared to find a new place after the lease is up. As far as buying the place, talk to the landlord and find out how much to settle his current mortgage and fees. If you think you can afford to buy it, write a contract with the landlord and buy it! Here's some supporting details for New Jersey...

Tenants in foreclosed property.
Your right to eviction for cause continues even when a bank or
mortgage lender files an action to foreclose on your rented property
because your landlord has not paid the mortgage. This means that the
foreclosing bank or mortgage lender must follow the law and can only
evict you for one of the causes under the law. Cite: Chase Manhattan
Bank v. Josephson, 135 N.J. 209 (1994).

I would plan on finding another place to live at the end of your lease
unless the bank agrees to another lease.
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