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

UPDATED: Oct 15, 2011

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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


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

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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