When does a landlord file for a foreclosure?

A foreclosure is a lawsuit filed by the mortgage company when the landlord does not pay the mortgage. In the foreclosure, the mortgage company asks the court to sell the property to pay off the mortgage. I am only a tenant – Why am I being served?

Do you have to pay rent after a foreclosure?

After the property is sold at the foreclosure sale, you do not need to pay rent to the old landlord. After the foreclosure, under the Protecting Tenant in Foreclosure Act, the new owner steps into the role of the owner, so you will have to pay rent to the new owner.

How can I find out if my rental property is in foreclosure?

Additionally, there is no similar obligation to disclose foreclosure proceedings to a current tenant (although you should see notices regarding the foreclosure posted on the property). But with very little effort you can find out for yourself whether a rental property is in foreclosure.

What are the rights of a tenant in a foreclosure?

Many state laws give important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial downturn resulted in thousands — no, make that millions — of foreclosed homes.

What happens if you fail to pay rent on a foreclosure?

If you fail to pay rent or breach the lease in some other way, your landlord has the right to file an eviction or other legal action against you. On the flip side of that coin, your landlord is also obligated to continue following the lease even though the property is in foreclosure.

What to do if you are renting a house that is in foreclosure?

Here’s what to do if you’re renting a property that is being foreclosed on. Tenants of a property in the midst of foreclosure should contact the bank or its attorney as soon as notices are sent out, and keep up to date on the foreclosure process. (Getty Images)

Can a landlord evict you from a foreclosure property?

As long as you continue to pay rent and comply with all the terms of your lease agreement, you are entitled to remain in the property during the foreclosure process. If you fail to pay rent or breach the lease in some other way, your landlord has the right to file an eviction or other legal action against you.