I am from Missouri and the owner of the home we are renting is being foreclosed on due to nonpayment. We have been paying our rent on time but we are faced with being evicted. What are our rights and since we have a years lease are they obligated to reimburse us for they remainder 6month lease?

Sorry no,

Once it is foreclosed they may evict you if they want.

If the old owner would sell the property, the new owner has to honor the lease, but on a foreclosure, the lease ends on the day the foreclosure takes ownership of the home.

So you need to talk to the bank or who ever is dong the foreclosure and see if they will honor the lease and if not, if they will let you stay renting month to month.

I am sorry, but you basically have no rights except to move.

My attorney said even if they evict whoever takes possession of the house has to honor the lease agreement even if it's the lender and we also have the right to sign another year agreement if done within 60days of expiration.

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Originally Posted by jck4

My attorney said even if they evict whoever takes posession of the house has to honor the lease agreement even if its the lender and we also have the right to sign another year agreement if done within 60days of expiration.

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I'd double check that answer. While I can see, possibly, forcing someone to honor your current lease, there's no way that I know of for you to legally force someone to extend your lease for another year if they don't want to be a landlord. So, at best you are going to be looking for another place to live at the end of the lease, if the new owners want to move into the house.

I am sorry but your attorney is wrong, unless you don't live in the US.

If and when they foreclose, they can evict you, I have personally seen it done dozens of time.

I would discuss this with another attorney, perhaps one who does real estate law.

Looks like you need a different attorney. Check this article:

Rental condo hit with foreclosure Chicago Sun-Times - Find Articles
And this one:
Real Estate Leases and Effects of Foreclosure

Have you thought of offering to buy the house? If the its going to be foreclosed, both the owner (your landlord) and the mortgage holder, might be amenable to a deal where you assume the balance of the mortgage and make a small payment to the owner.

But as for your rights, they are minimal. Once the mortgage holder forecloses you can be evicted. Most likely a court will not require that you be thrown out in the street, since you aren't being evicted for nonpayment. You should be given a reasonable time to move.

It would be interesting to know the time frame. You say it is being foreclosed upon. Does than mean the foreclosure hasn't started yet? Depending on how far into the foreclosure, you may be living there for the rest of the term of your lease. Is your landlord going to file bankruptcy? If so, that will stop the foreclosure at least for the time being.