Will you be Evicted in the Event of a Foreclosure?

Will you be Evicted in the Event of a Foreclosure?With so many properties being subject to foreclosure in the past few years, it is not surprising that many tenants have become concerned that their building might be foreclosed upon, leaving them without a home. While eviction of tenants used to be common practice in rental property foreclosures, in 2009, the Obama administration enacted the Protecting Tenants at Foreclosure Act.1 This Act requires the new owner of a building to honor the terms of the lease agreement until it expires. In the case of month-to-month leases, tenants have 90 days notice before the lease would not be renewed.

Landlord actions in foreclosure

The fact that you will not be evicted immediately does not mean that a foreclosure will not cause some complications. For example, landlords facing foreclosure are often desperate to keep their property and may resort to unlawful behaviors, including:

  • Turning off certain utilities for extra cash flow
  • Lying to new tenants and entering into new leases during the foreclosure action
  • Using deposit funds to pay the mortgage or other expenses
  • Not notifying tenants of the foreclosure and continuing to accept rent payments after the foreclosure is final

Additionally, though your lease may continue, the new owner may not be prepared to be a proper landlord. For this reason, though you continue to pay rent, maintenance requests may go ignored and similar issues may arise in the building.

Call a Tacoma eviction lawyer today to discuss your options

As a renter, the news that your landlord has been foreclosed upon can come as a complete surprise. Fortunately, tenants have certain rights. The law often requires the new owner to honor the terms of the lease and prohibits unscrupulous conduct on the part of the former owner. For this reason, anyone who is concerned about a landlord foreclosure should talk to an attorney immediately. To schedule a free consultation a Tacoma eviction attorney, call the Dickson Law Group today at 253-572-1000 or send us an email through our online contact form.

Resources:

http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/ptfa.pdf