What to do if the house that I rent and always paid on time is in foreclosure?

UPDATED: Dec 26, 2012

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What to do if the house that I rent and always paid on time is in foreclosure?

Asked on December 26, 2012 under Real Estate Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Until the foreclosure actually occurs, nothing has changed: your landlord is still your landlord, and still must pay your rent or else be in breach of lease and be evicted.

Once the house is foreclosed upon and is sold at a foreclosure sale/auction to someone else, the buyer is your landlord. What happens next depends:

1) If you have a written lease for a definite period of time (e.g. a one-year lease) and the buyer is not looking to live there personally, if the buyer wants you out, you get the greater of 90 days or the remaining time on your lease.

2) If you don't have a written lease, or have a written month to month lease, or the buyer does want to live there personally, you get 90 days.

3) You could elect to move out at any time after the foreclosure, unless you end up renting from the new buyer (see below); your tenancy has been terminated.

4) You and the new buyer could agree to continue to rent you to you, either under the same or new terms. The new buyer is not bound by the old lease.

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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