Is a renter still entitled to pay rent on a foreclosed house?

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Is a renter still entitled to pay rent on a foreclosed house?

Asked on January 25, 2013 under Real Estate Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Until the foreclosure is completed, your landlord remains the owner is still on the title to the property. Accordingly, you must continue paying rent. The start of foreclosure proceedings does not relieve you of this obligation. The fact is that if you fail to pay you could be sued for eviction (and the monry).

So find out from the mortgage lender when title to the property passes at auction. Some former landlords have tried to continue and collect rent even after they no longer own the property. Fortunately, as a lawful occupant of a rental property, under the circumstances you should be notified by the lender as to the transfer date of the property (after that the landlord is no longer the legal owner). You will then be informed where to send your payments.

Note: You should know that federal law gives certain protections to a tenant in this situation. When a home goes into foreclosure, tenants who have a written lease can continue to occupy the home until the end of the lease period, or 90 days, whichever time is longer. The only exception would be if the new owner intends to move in and occupy the home as their primary residence. In that case, a 90 day notice to move would apply.


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