Foreclosure Rights for Renters
In order to better understand the various foreclosure rights for renters that are available today, one has to understand why they came about in the first place. Prior to 2009, there were not too many foreclosure cases in the U.S. However, when foreclosure cases began to skyrocket in late 2009 and afterwards, many tenants were left helpless because a foreclosure often had precedent over a lease agreement. If a landlord lost a property to foreclosure prior to 2009, there were not too many foreclosure rights for renters and they were usually easily evicted from the property for no fault of their own. However, laws and rules were quickly amended to provide tenants with foreclosure rights for renters even if their rental property was foreclosed. Here are some of the most important foreclosure rights for renters, mentioned below.
Eviction periods – foreclosure rights for renters – According to the new laws and foreclosure rights for renters guidelines, a tenant will be able to stay at an apartment for the validity of their lease period if they had signed a lease that runs for longer than a year. Shorter leases and month to month leases provide foreclosure rights for renters that only allow them to stay for 90 days, after which they have no choice but to evict the property to make way for the new landlords.
Exceptions to eviction notice periods – foreclosure rights for renters – Though the new laws came out with foreclosure rights for renters that would allow the tenants to stay for the entirety of the lease if it was longer than a year, it does not allow that right if the new landlord wishes to occupy a property themselves. Thus, foreclosure rights for renters guidelines will only provide 90 days of notice to a tenant who has signed a lease for a much longer time as they will have to make way for the party who bought the foreclosed property.
Security deposit refunds – foreclosure rights for renters – Even though the rental property might have changed hands, foreclosure rights for renters will still allow the leaving tenants to seek a full refund of their security deposit from the new owners who will have the assumed responsibility of the previous landlord. The general laws that relate to a security deposit refund in a rental contract will all apply to a property that is going through a foreclosure as well.
Payment of rent – foreclosure rights for renters – Many state laws will require a landlord to inform the tenants when they fall behind on their mortgage payments. However, most landlord never report any such change and tenants are usually in for a rude shock when they are told that the property they are staying in has changed hands. If a tenant suspects that a property they are staying in might be heading for foreclosure, foreclosure rights for renters will allow them to demand an explanation about the situation from the current landlord. Foreclosure renters rights for renters will also allow a tenant to hold back a rent payment if they are suspicious or unsure about who the authorized landlord is. Some landlords have been known to continue rent collections even though they might have lost ownership to a particular property.