When a tenant or a business owner is evicted after commercial foreclosure, a feeling of hopelessness may occur. Commercial foreclosure occurs when the property owner of that commercial building does not meet his debt obligation and the lender forecloses on the process. The end result is that the property owner loses the property in the foreclosure and a new owner purchases it. In some situations, the new owner will evict the tenant or business owner from the premises.
When It Is Possible To Fight Eviction
In some situations where a tenant is evicted after commercial foreclosure, there are no opportunities for the individual to fight the eviction. In most situations, the new property owner, who purchased the commercial foreclosure, has full rights to that property. He or she can do as necessary to use the property as they would like to do so. The tenant, unfortunately, has few methods of recourse.
However, there are several situations in which the individual may have the ability to fight being evicted.
- First in Time, First in Right: This method may be a good option for individuals who have long held leases. If the lease was in place on the property before the now foreclosed mortgage was, the lease is a binding contract. If the mortgage was obtained before the lease was signed, this does not apply.
- In some situations, the lease will have a clause within it that allows the new property owner to take over as a landlord on the lease. This may occur if the new property owner wishes to keep the existing contract in place.
In other situations, eviction may occur legally. However, this does not mean it has to happen. In many situations, the new property owner will want to keep the tenant in place, especially if the tenant makes his or her payments on time and cares for the building properly. Unless there is another use for the space planned in, many new property owners will not evict commercial tenants right away.
Hire an Attorney
In some states, there can be other laws to protect tenants in cases of being evicted after commercial foreclosure. In all situations, the tenant should consider hiring an attorney to legally represent them in a court of law if needed. Further, the individual may also wish to have an attorney help to create a new lease that is binding and fulfills the needs of all parties involved.
