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Tenant’s Rights in the Foreclosure Process

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I receive many calls from tenants as well as landlords who own/rent a residential property related to the foreclosure process and how it affects rental payments..

A tenant must continue to pay rent to their landlord or to the receiver if one is appointed until the ownership changes.   Tenants should keep receipts of all money that is paid to their landlord not only to avoid eviction but also to provide to the new owner of the property.

If tenants do not pay rent, a landlord can evict a tenant.   However, the landlord must go through the Court in the normal court process.

Pending foreclosure action alone is not grounds for eviction to remove a bona fide tenant.  Tenants have rights whether there is written lease with the landlord or not.

Tenants who want to stay in the home that is in foreclosure can only be removed through the Court process.

However, since the foreclosure process may take some time, it is important for tenants to continue to pay rent.   Landlords can evict tenants even if the house is in the foreclosure process.

Sheriff’s sale notices are listed in the County Sherriff’s websites so you can always see when the sheriff’s sale is to take place.