As a tenant of a foreclosed property, can I be evicted?

Given the recent mortgage crisis, more and more landlords were having their properties foreclosed, leaving tenants little or no notice prior to eviction.  The acquiring bank or new owners of the foreclosed property had the right to evict the tenants with little warning. 

This changed on May 20, 2009 as a law called the "Protecting Tenants at Foreclosure Act of 2009" act was signed. The purpose of this Act was to provide broader rights for tenants of a foreclosed property According to this new law: 

• Leases typically aren't affected by a foreclosure, so that the tenant is able to stay until the end of the lease at a minimum without being evicted. 

• In the case when tenants have a monthly lease, the tenants must receive 90 days or more notice before being required to vacate the property.  This was much longer than any state’s non-foreclosure notification timeframe, which has served tenants well.

• Foreclosure and change of ownership does not amount to “just cause” for eviction of a tenant under federal statutes.

There is an exception to this rule.  If a new buyer wants to live on the property he bought, he can evict the tenants as long as he gives notice of at least 90 days.  This still affords tenants, including those with Section 8 housing, time to find a new place to live, whereas they had very little warning previously. 

If you are a tenant and your property is foreclosed on, you should consider speaking with a lawyer. Your attorney can help you to ensure your right to remain in your home is protected, as guaranteed by law.