If, for some reason, the foreclosure happens quickly, you may also be protected under the Federal Protecting Tenants in Foreclosure Act, which - in most cases - guarantees that you can either stay the term of your lease, or 90 days, after the foreclosure is complete (that is KEY - complete, meaning that the bank legally has taken title).
So, no, you do not have to move, and the bank cannot kick out out without substantial notice.
I strongly recommend that you speak with an attorney; if this is not financially possible, there are legal aid services available through many local agencies.
hope it helps
if you have any question you can email me at firstname.lastname@example.org
What Can a Foreclosed-Upon Tenant Do?
Thanks to the 2009 federal legislation, most tenants with leases will keep their leases, and month-to-month tenants will have at least 90 days to relocate. Tenants with leases have no legal recourse against their former landlords, because they are in the same position vis a vis the new owner as they were with the old: The lease survives and ends as it would had there been no foreclosure. Similarly, month-to-month tenants always know that they can be terminated with proper notice, and 90 days is longer than any state's termination period.
However, a lease-holding tenant whose rental has been bought by a buyer who wants to move in to the property ends up less fortunate than before the foreclosure -- he may lose his lease with 90 days' notice, a result that probably would not have happened had the owner simply sold the property to a buyer who intended to occupy the property. (Normally, the new owner has to wait until the lease ends, absent a lease clause providing for termination upon sale, though such clauses may not be legal in all situations.)
Carlos del Amo http://www.CarlosDelAmoGreen.com
This is a common occurence with the housing crisis we are in. As you know, many investors bought homes with the intent of turning them over for a profit. Well, the market changed and these investors were forced to keep these properties as rentals, many of them at a monthly loss. Please note: the bank cannot simply come to your home and kick you out into the street. There are procedures that need to be followed. Most importantly, you need to make sure you have a lease agreement between you and the owner and make sure you are paying with checks. You may need to provide proof that you are making payments and are up to date. The foreclosure process can take months, even years. You may try approaching the owner to see if he is willing to re-negotiate the lease terms (to a lower rate, of course). If not, and the stress proves to be to much for you, then consider moving out. This way, you and your family will not be sitting waiting for the ineveitable day to come. Most importantly, do not sit and do nothing. This will not resolve your situation and the uncertainty will only cause your stress level to increase. Please feel free to contact me for more info and if you would like to see what other housing options are out there for you.
Jose I. Gonzalez PA
That's a legitimate concern.
Tenants in the past had no recourse when facing an eviction due to previous owner foreclosure and subsequent sale of the property. Under the "Helping Families Save Their Homes Act of 2009." Section 702 of "Protecting Tenants at Foreclosure Act", the rights of tenants are addressed when a property is foreclosed and sold to a new owner.
Tenants who signed a lease with the previous owner, have the right under this new law to remain in the property until the end of their lease unless it becomes the new owner's primary residence. If the new owner intends to use the property as their primary residence, a 90-day notice to vacate must be provided to the tenants. Those tenants without a lease are entitled to a 90-day notice to vacate also if considered a bona-fide (good-faith) tenant under the law
The aforementioned information is general in nature. I RECOMMEND you seek an attorney for legal advice and guidance.
You are bound by the lease to pay your rent. But by talking to a lawyer they can advice if it will be appropriate to go to court and have the judge designate a payee who will record your monthly payment and keep you safe from both the landlord and the lender if they foreclose. Bottom line talk to an attorney.
Charles Rutenberg Realty
Should you pay or not?
The lease you signed before the lis pendes was an agreement betwen you and the owner of the property and will be breach by the landlord at the time He loose title on the property. If you stop paying the rent you will be breaching the lease and all the terms.
But any way everything is negotiable start to negotiate all the terms with your landlord,
and keep in mind that the bank cannot take you out of the property if you have a lease and the monthly payment is at fair market value.
But the most important thing is look for a legal advise maybe there is an attorney out there willing to work a case like this.
But if you wanna stay for any reason, school location or anything you should keep paying or offer the owner to work a short sale.
I have a team that we do Short Sales at not cost and you could probably be able to get a house instead of keep paying rent.
For free consultation give me a call.
Realty World Executive Homes