Does a tenant need to pay rent if the house is going into foreclosure?
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Does a tenant need to pay rent if the house is going into foreclosure?
We are currently renting a property and have been doing so for the last 2 1/2 years. We recently have been notified that the property is up for sheriffs sale. Once we found out, we stopped paying rent. We have no lease and never signed one. The landlord is now taking us to court to trying to get the money.
Asked on July 15, 2010 under Real Estate Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Until the house is actually foreclosed on--that is, until such time as the lender takes possesion and the landlord is no longer the owner--you have to pay rent. That's because up until the very moment the foreclosure is accomplished, the landlord is the owner, has a right to possession, and therefore is still your landlord. If you do not pay the landlord simply because he is being foreclosed on or may be foreclosed on, you are in breach of the lease. The landlord may sue you for the rent, take it out of your security deposit, and/or evict you.
Once the foreclosure happens, you no longer need to pay the landlord, since at that point, he'll have no legal right to the home. However, unless you work something out with the new owner, he, she or it will in good order be able to evict you from the premises.
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