If myrental in foreclosure, do I still have to pay rent?

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If myrental in foreclosure, do I still have to pay rent?

House is being sold in 2 months.

Asked on October 15, 2011 under Real Estate Law, Arizona

Answers:

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

Answered 9 years ago | Contributor

Even though a foreclosure has already been filed, as long as your landlord remains the owner of record (that is still on the title to the property); you must continue paying rent to them. If you do not you could be sued for the money. Therefore, you must be careful to find out just when title to the property passes at auction, etc. Former landlords have been known to try and continue to collect rent even after they no longer own the property. As a lawful occupant of a property in foreclosure, you should be notified by the mortgage lender as to the sale/transfer date of the property. After this time, the landlord will no longer be the legal owner. You will then be informed where to send your rental payments by the new owner. However, your landlord is responsible for the return of your security deposit, not the new owner.

Additionally, you should be aware that federal law gives some rights and protection to a tenant in the event that their rental unit is foreclosed upon. Accordingly, 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 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. Additionally, in cases where state law provides more protection than the federal law, the state law applies.


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