Are there any laws that can prevent me from getting suddenly kicked out of a home that I am renting which is facing foreclosure?

There are some laws that should protect you. It’s important to check foreclosure laws state-by-state (so it’s good that you provided your state), and it’s also important to check the laws when you need them—the 2010 foreclosure laws are not exactly the same as last year’s laws. For example, there is a new law taking effect in New York in April 2010 that will require the lender, when it takes over the property, to maintain the property and keep it in good shape and habitable for any tenants. There is also a federal law from last year, often called the “Protecting our Homes Act,” which says that when someone (including the lender) buys a home at foreclosure auction or sale, they can’t immediately evict any tenants. This is a big change from prior law, which said that the foreclosure ended the tenant’s right to occupy the space.

Under the new federal law, tenants get anywhere from 90 days to the full balance of their lease term, depending on the circumstances. An attorney can advise you what laws are relevant to your situation and exactly how they apply—consulting with an attorney is often a very good investment for a tenant in a building being foreclosed upon or, for that matter, a homeowner whose property is being foreclosed. Owing to the recession, the credit crunch, and the popping of the housing bubble, the laws in this area are changing more rapidly than ever, as lawmakers try to protect—or at least soften the blow on—people who haven’t really done anything wrong but are just the victims of circumstances. It pays to have a knowledgeable expert help make sure you are taking advantage of every benefit or protection to which you are entitled.