When the landlord is in foreclosure, do the tenants have any rights?
Afraid of losing your home because your landlord is in foreclosure? Tenants have rights, too!As the Florida foreclosure crisis deepens, more and more people find themselves sucked into court on a foreclosure case because their landlord stopped paying the bills. The number one question these people have, is:
What are my rights when my landlord is in foreclosure?The answer, you'll find, is good news. In May of 2009, the federal government enacted the “Protecting Tenants at Foreclosure Act of 2009,” Public Law 111-22. That law provides that, in foreclosure proceedings on most mortgages, the tenant is allowed to stay in the property even if the property is sold at a foreclosure auction. How long depends on the type of lease, but it's usually a minimum of ninety days, and in many cases, the law allows tenants to stay until the lease expires.
How can tenants protect their right to stay in foreclosed property?More good news: tenants, especially those who are listed as defendants in the foreclosure case, can ask the court to protect their legal rights as tenants to stay in the property. As long as those tenants follow the proper court procedures, the court should, in most cases, protect the tenants' legal right to stay in the property by entering a court order. Because it is easy to make a mistake unless you're extremely familiar with court procedures, we recommend that any tenants who want to protect their legal right to stay in their home should have the help of a lawyer. The cost is much lower than you might think, and we offer a free half-hour consultation to help you figure out if you qualify for tenant protection under the new law. Just contact us right away.
Photo Credit: Roy Googin
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