Tenants Have Protection in Foreclosures
Question: We have been renting a home in Chandler for several years. We just signed another one-year lease. Two nights ago a process server came by and posted a notice of foreclosure in our front yard. Our landlord lives in Chicago and has not returned our phone calls. If our home is sold in foreclosure, when will we have to move?
Answer: In general, a federal law protecting tenants in their homes during any foreclosure by the landlord’s mortgage lender has been in effect since 2009, and has been recently renewed with no expiration date. If you are a bona fide tenant, i.e., not related to the landlord and paying fair market rent, you should be able to stay in your home through the end of your one-year lease. Although there is a minor exception if your home is sold at the foreclosure to a buyer who will actually live in the home, you will still have a minimum of 90-days’ notice to move out of the home.
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