In a rent-to-own situation, what happens to the tenants in a foreclosure?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
In a rent-to-own situation, what happens to the tenants in a foreclosure?
About 5 years ago my in-laws offered to secure a mortgage for my wife and I due to our poor credit at the time. We provided the funds for the mortgage and moved onto the property, which was titled in their names. In actuality, we are tenants in our own house. Then 2 years ago we decided to take advantage of the tax rebate on home purchases and applied for our own mortgage only to find out there was a $10k lien on the property. We were unable to acquire the property and now the in-laws are in significant debt and behind on their mortgage payments. Could we be evicted from our home as tenants? Do we have protection as homeowners or as tenants?
Asked on July 11, 2011 under Real Estate Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There is a recent Federal Law that allows a tenant to stay in a property they are renting until the term of the lease is concluded provided rent is paid timely and other terms of the lease is adhered to. For example if there is eight months left on the lease, potentially you have another eight months to rent the property regardless of the foreclose.
If your rental agreement is on a month to month basis under this relatively new Federal Law, the new property owner, post foreclose has to give you at least ninety days written notice to vacate the foreclosed property assuming rent is current.
If you are interested in purchaing the property, potentially the new owner post foreclosure would be willing to give you a good deal to purchase it. It would be to the newowner's advantage to do so in that a sale could occur sooner to you and perhaps real estate commissions could be minimzed in the sale.
Good luck.
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.