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Tenant/Landlord question about foreclosures
Tuesday, October 05, 2010

I can honestly say that I have never seen a tenant in a home that was a foreclosure, and I have seen hundreds of them.

I can also say that I have heard this question before and never heard this answer. Also note the response "probably not" which I believe move out, and we'll fight about it in court.

The following is direct from the Arizona Association of Realtors



LANDLORD/TENANT
Tenant Generally Has Right to Stay in Home after Foreclosure

Question :The foreclosure sale is scheduled in two months. The residential tenant has eight months left remaining on the term of the lease. If the foreclosure sale occurs in two months, will the tenant have to move out?


Answer: Probably not. After the foreclosure of most mortgage loans, federal law authorizes a tenant under a bona fide lease to remain in the home for the remaining term of any lease executed before the recording of the notice of the foreclosure sale. Therefore, the tenant should be entitled, but is not required, to remain in the home after the foreclosure sale for the remaining term of the lease.


Note: If, however, the bank or other purchaser at the foreclosure sale sells the home to a buyer that will use the home as a primary residence, the tenant will be required to move from the home after ninety days written notice from date of closing.
Posted by Brian on 12:41 AM • (0) Comments • (0) Trackbacks • Permalink • Email This Post
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