What are my legal rights as a tenant in a foreclosure?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are my legal rights as a tenant in a foreclosure?
We signed a 1 year lease 4 1/2 months ago. We were given by hand from mail carrier that the house in going into foreclosure and the auction is set in another 4 1/2 months. We contacted them and they agreed in writing via email to allow us to stay in the home rent free until then, possibly even 90 days after the bank takes possession. We are fine with that and plan to move. Now, their real estate agent called and wants to know if we want to buy the home on a short sale. This was not the plan and we feel the owners are being underhanded and trying to just “save their credit”.
Asked on August 19, 2011 Idaho
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There was a federal law passed last year where tenants in a month-to-month lease on property foreclosed upon have at least ninety days written notice to vacate the property from the new owner who acquires the property at a trustee's sale. If the lease is more than a month-to-month and there is a term remaining on the lease, the tenants have until the lease's term ends to remain in the property assuming rent is current.
If you want to buy the property from the current owners on a "short sale" you can explore the possibility as to price and terms. The lending institutions holding the secured loans on the distressed property have to approve the terms of the sale in writing in a "short sale addendum" because the sales price will be less than what is owed on the secured loans.
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.