Foreclosure in Oak Hill>Question Details

Cryslstarr843, Other/Just Looking in Jacksonville, FL

what are the rights of a renter who's rented home goes in foreclosure?

Asked by Cryslstarr843, Jacksonville, FL Mon Aug 17, 2009

Help the community by answering this question:


Charles Chorman’s answer

Thanks to the 2009 federal legislation "Protecting Tenants at Foreclosure Act of 2009", 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 want to move in to the property ends up less fortunate than before the new law -- 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. As I'm not an attorney it would be advisable to contact one in this instance.)

Hope that this helps.
Charlie Chorman
(Information deemed reliable, but not guaranteed.)
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1 vote Thank Flag Link Mon Aug 17, 2009
Funny, I was in a meeting with FAR Lawyer on this very subject. Looks as if Charlie has it nailed, to include the new 90 out rule for a buyer that wants to move in the peoperty.

Well done.
0 votes Thank Flag Link Mon Aug 17, 2009

Mr. Chorman knows his stuff... that is an excellent response. You should also know, depending on your landlord's situation, that the foreclosure process in Florida can be lengthy (in some states it can happen very quickly, such as GA) which may also offer you a bit more time.

Good Luck and I hope it all works out well for you.

Holly Hayes
0 votes Thank Flag Link Mon Aug 17, 2009
I would like to commend Charlie on his well informed answer, he is absolutely correct.

Good Luck!
0 votes Thank Flag Link Mon Aug 17, 2009
Stay in the house they will have to evict you or honor the lease. Banks will from time to time offer you cash for keys.

Rodney Gornoski
Realty Executives
0 votes Thank Flag Link Mon Aug 17, 2009
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