Most tenants are unaware of whether their landlord is making timely payments of their mortgage. In most cases, tenants are caught by surprise when they get the news that their rental is being foreclosed and they will have to vacate their home. Due to this, tenants are left out in cold with little time on their hands to find a new place that matches their rental budget. If your rental home is about to be foreclosed or you received a notice to vacate the premises after foreclosure, you should talk to a reliable and experienced attorney to help you evaluate possible options for your specific situation.
Your Rights as a Foreclosed-Upon Tenant
If you are a tenant who lives in a property facing foreclosure, you should be aware of your following rights and responsibilities in such a situation:
- You must continue paying your rent and act in accordance with all the terms and conditions of your rental lease agreement even if you know that the property is going to be foreclosed.
- You must know that you will not be paying rent to the original landlord with whom you signed the rental agreement after the foreclosure sale. Since they no longer own the property, you must make the payments to the new owner.
- It is important to know that you will not be required to vacate immediately after the foreclosure sale.
- If someone claims to be the new owner, you must first ask them to show the Trustee Deed for your rental property to confirm ownership. You may also contact your state’s record office or auditor to confirm the authenticity of the deed.
- Before the new owner or bank can take an eviction action, they must send you a proper written notice for vacating the property.
- As per the 2009 federal legislation, if you have a lease, then you will be able to keep it. If you are paying rent on a monthly basis, you will have at least 90 days to vacate and find a new place.
There are a few signs that may indicate your landlord’s mortgage default. If your landlord pays the utility bills and the utility company has cut the supply, it is safe to assume that your landlord may be facing foreclosure. This is because if they are unable to pay the utility bills, there is a high chance they don’t have the money to make mortgage payments either. In such a case, you may conduct a research for a Notice of Trustee Sale filed against your landlord in your state or county publicly recorded documents to find out about an upcoming foreclosure.
If you have a hunch that your landlord is going through foreclosure or have received a notice to vacate your rental property, it is advised that you talk to an experienced attorney right away. Contact Covert & Covert, LLP at (630) 717-2783 or online to schedule a free consultation today. We have offices in Schaumburg, Warrenville, and Nap