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    ndavis's Avatar
    ndavis Posts: 1, Reputation: 1
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    #1

    Oct 28, 2008, 06:26 PM
    Renters in Short Sale of Property
    We are realtors in Tampa Area and have a few homes listed for Short Sale that are tenant occupied. And we need to know what the Law actually states about the tenants rights and the validity of the lease. We were able to find information if the home is foreclosed on, but nothing addressing the short sale. Any assistance would be greatly appreciated.

    Nick
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Oct 28, 2008, 06:53 PM

    A short sale is still a sale and the lease will be valid to the new buyers.

    In a Short Sale the bank merely agrees to accept less than full amount for the sale of the property and the only gets basically nothing, but the house is still sold. Only normally in a foreclosure or a tax sale will the lease be ended.
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
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    #3

    Oct 29, 2008, 10:13 AM

    I agree w/Fr_Chuck. If the house sells prior to actually going through the foreclosure the law is that the new owner must honor the lease. And at the end of the lease they'll still need to give the tenants the amount of notice required by the lease.

    Or sometimes they may be able to buy the tenants out of the lease to get them to leave early.
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