Well about 3 weeks ago we got a notice taped to our door saying that the owner was in default of his loan and that the house was going to be sold on Aug 11. ( a trustee sale) We let the owner know and he acted like he didn't know anything about it. On the 10th a man came knocking at our door looking for the owner and we told him that we are just the tenants. He said that the house was going to be sold tomorrow and expect the new owners to be knocking on our door wanting there house as of Aug 11th. We usually pay our rent on the 10th of each month but we decided to wait and see what the 11th brought. Well the owner came telling us that the house was sold but we still had to pay him rent because we had a commitment to him. And now handed us a 3 day pay or quit notice on a house that he doesn't even own anymore... What can we do as tenants? Do we have any legal recourse against him?

If the house was foreclosed and auctioned, you have 90 days in which to move. The previous owner can serve you anything he wants to. But he can't enforce it since he doesn't own the property.

You need to start looking for a new place though.

If he no longer owns the home then you no longer have any "commitment" to him. He is entitled to the rent for the time up until the time the house was sold. After that point he is not entitled to rent.

If he does not own the home then he does not have the right to give you an 3 day pay or quit notice. Only the owner of the home can do so.

If/when the new owners contact you they must give you a minimum of 30 days written notice that your tenancy is terminated. They are entitled to receive rent from the date they took ownership of the home until the date you turn over possession of the home to them. If they give you notice that your tenancy is terminated and you do not move out within the 30 days then they can file a lawsuit for eviction.

Agreed, you owe him the 10 days, but also if the house has a new owner ( I would have been at the sale if it was me) but if he does not own it any longer he now owes you the deposit back if you gave him one

I forgot to mention I have a one year lease that ends on dec.1 does that mean anything at all??

The lease was terminated by the foreclosure sale. Now you are a month-to-month tenant.

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Originally Posted by candisv

I forgot to mention i have a one year lease that ends on dec.1 does that mean anything at all?????

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Actually that does matter. Under the helping Families Act of 2009 (see the sticky on foreclosures at the top of this forum) The lease now has to be honored, EXCEPT if the new owners plan on occupying the property. In that case, you still must be given 90 days notice.

Yes, the new owners do not have to honor the lease when it is sold by foreclosure, so you are on month to month rental to the new owners ( so keep the money to pay them set back) and as Scott said, the new owners will have to give you a 90 day notice