Renters Foreclosure Rights
Prior to 2009, there was not much information about renters foreclosure rights. However, the recession created a lot of awareness about renters foreclosure rights. Federal authorities in May 2009 amended tenancy laws in such a way that it consisted of a comprehensive list of renters foreclosure rights. Some of these renters foreclosure rights are discussed below. With so many properties going into foreclosure even now, it is very important that tenants read up on the following renters foreclosure rights to protect themselves against the perils of foreclosure related tenant problems.
Notice periods – renters foreclosure rights – If a property in which a tenant is living in goes through a foreclosure and ends up with a new owner, the new owner will be required to give a 90 day notice to ask the tenant leave. This 90 days notice is only applicable when the tenant was living on a month to month lease or a week to week lease. Renters foreclosure rights will allow a tenant to stay back at a rental property until the end of a lease period if they entered into a formal rental agreement by signing lease papers.
Exceptions to the notice period – renters foreclosure rights – Rental foreclosure rights will however not offer much of a cushion to the tenants if a property goes through a foreclosure and ends up in the hands of a new owner who intends to reside in the property. If the new owner intends to reside in the property, renters foreclosure rights will only give the tenant 90 days of notice. According to renters foreclosure rights guidelines, tenants will have to evict the property within 90 days even if their lease allows them to stay at the property for a much longer period.
Cash for keys – renters foreclosure rights – Renters foreclosure rights might also make it eligible for a tenant to accept a cash payment from the new property owner. In return for the cash, the new property owner will expect the tenant to waive their renters foreclosure rights and leave the property without being served a 90 day notice or without waiting until the end of the lease period to move out.
Going to court – renters foreclosure rights – It is not uncommon for new property owners to lie to tenants that they are going to take up residence in the property. They do it to get rid of the tenants sooner. If something like that happens, renters foreclosure rights will allow the former tenant to sue the new property owner in small claims court for rent expenses in addition to damages and related legal fees.
Be careful about who you pay rent to – renters foreclosure rights – When a rental property is going through a foreclosure, a tenant should be doubly careful about who they are making the rent payments to. There have been many cases of abuse of renters foreclosure rights when previous landlords continue to collect rent payments even though they have lost possession of the rental property.