What happens when my Landlord is foreclosed on?

Your rights as a tenant in foreclosure vary depending on whether you have signed a lease or are renting month to month. According to The Helping Families Save Their Homes Act of 2009, month-to-month tenants have a minimum of 90 days to move, but other laws vary. Bear in mind that even if your landlord is not paying the mortgage, a tenant still must to continue to pay rent in most states. Some tenants in a foreclosure situation reserve the right to sue a landlord in Small Claims Court for failing to honor the term of the lease. You would need to contact a lawyer or tenant organization to determine if this would apply to you.

If you are allowed to sue for damages, here are some fees you might be able to recoup:

  • Moving companies and rental trucks
  • Expenses incurred to find a new home
  • Loss of security deposit
  • Difference between present rent and new rent
  • Cost of new security deposit
  • Time away from work

Don’t hesitate to contact a lawyer for further advice. However, different laws might protect Section 8 tenants.

Tenants might call their landlord to find out if they can apply their security deposit to future rental payments, because in some states such as California, the foreclosure wipes out the rental agreement. In that instance, your security deposit is gone.

This website provides general information related to the law designed to help users easily research about possible legal needs. This website does not provide legal advice and Provider is not a law firm.  Please consult your attorney for more specific information.

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