Understanding Tenant Rights: Rights of a Tenant During Foreclosure
What is foreclosure?
A foreclosure is when a bank takes back a building from an owner. This usually happens because the owner didn't make mortgage payments.
The entire legal process can last from 7 months to over a year. Sometimes, the bank and owner reach an agreement and the case ends. The owner might also sell the property to a new owner.
A tenant’s rights and duties don't change when the landlord is in foreclosure. For example:
- The tenant and the landlord still have to follow your lease;
- The tenant has to pay rent; and
- The landlord, or whoever owns or is managing the property, still has to maintain the property.
A tenant cannot be evicted just because the landlord is in foreclosure. Also, the fact that the landlord is in foreclosure is not a defense for the tenant in eviction court.