If I’m a tenant of a dwelling being foreclosed on, should I continue paying rent?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I’m a tenant of a dwelling being foreclosed on, should I continue paying rent?
Asked on December 28, 2012 under Real Estate Law, New York
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Yes, you should, the fact is that as long as your landlord remains the legal owner, you must continue paying rent. A foreclosure does not relieve you of this obligation; if you fail to pay you could be sued for the money.
You just need to be careful to find out when title to the property passes at auction or otherwise. Some former landlords have continued to collect rent even after they no longer owned the property. Fortunately, as a tenant in foreclosured property, you should be notified by the mortgage lender as to the transfer date of the property (i.e. the date on which the landlord is no longer the legal owner). You will then be instructed as where to send your rental payments.
Note: You should be aware that when a rental goes into foreclosure, tenants who have a written lease can continue to occupy the home until the longer of the end of the lease period or 90 days. The exception to this would be if the new owner intends to move in and occupy the home as their primary residence. In such case, a 90 day notice to move would apply.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.