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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 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.


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