Do foreclosed property owners have to maintain a lease?

If you own a piece of rental property and experience a foreclosure, you may wonder whether you’re legally obligated to continue your lease agreement with the tenants. You, a the property owner, rented the property to them in the past, but after a foreclosure takes place, you’re no longer considered the property owner, so the answer is that, essentially, you’re released from your obligations in the lease. However, what happens to the tenants and what is the rule for tenants and foreclosed properties?

The official legal rule passed in 2009 guarantees the tenants can remain in their property for the term of their lease. If, however, the lease was a monthly lease, then the tenant typically has 90 days to find a new home before he can be asked to leave If you’re renting a property and the owner goes through a foreclosure, try holding a conversation with the new owners if you wish to stay longer than the law allows. Even if they don’t legally have to keep your lease in place, provided you’re a good paying tenant, chances are fairly good they’ll want to keep you and be happy to set up a new lease agreement with terms that meet both of your needs.

If your rights are infringed upon by the new owner, however, or if you need help enforcing the tenant protection laws that are in place, you may wish to consult with an experienced lawyer who can help you to protect yourself and make sure you can stay in your home.