Ask Experts Questions for FREE Help !
Ask
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #1

    Feb 11, 2009, 02:17 PM
    Rentals in foreclosure
    This is a more and more frequently asked question in the current housing crisis. So I figured I'd post a sticky covering it.

    First we need to differentiate between renting a house and renting an apartment in a multi-unit building.

    In a multi-unit building, when the property is foreclosed, the outstanding leases will be honored. So the point is moot. The tenant continues paying rental as they normally do, until they are informed otherwise.

    However, in a house rental, the lease generally ends with the completion of the foreclosure. The new owner can then give the tenant notice to vacate. The tenant can delay this for a time, but eventually will be ordered by a court to leave. Courts are sympathetic to tenants caught in this situation and the tenants will be given a reasonable amount of time to find a new home.

    NJ is a recent exception to this. NJ law now requires the new owner to not only honor the lease, but renew it except under certain conditions, one of which being the new owner wants to occupy the property. (see this thread https://www.askmehelpdesk.com/real-es...re-295411.html)

    Under the law in almost all US states the tenant must comply with the existing lease until foreclosure is finalized. This means rent must continue to be paid and the tenant cannot break the lease (move out early) without permission from the landlord.

    The only exception I am aware of is in California where TITLE 6. RENT SKIMMING - Sections 890-894 - California Civil Code - California Code :: Justia permits a tenant, under certain conditions to cease paying rent.

Check out some similar questions!

Susquehanna equipment rentals [ 12 Answers ]

Anyone have the susquehanna equipment rentals spreadsheets complete?

Landlord foreclosure on rentals [ 1 Answers ]

Do we have any legal action against our landlord that allowed the house that we live in to go into foreclosure? He has been collecting our rent checks and not paying the mortgage for over a year. He also has multiple other properties and lives in a $2 mil mansion. I had asked him multiple times if...

Rentals in New Jersey [ 2 Answers ]

I am from INDIA. I would be travelling to Trenton, New Jersey and reaching there on 16th December, 2007. Could anybody help me to know what kind of house would I need for my family ( Myself, Spouse and Kid (3 Yrs) ) ) and sites where I can found the house on rentals. What is average rental for 1...

Law for keys to Rentals [ 1 Answers ]

Wondering if anyone knows what the California law(s) is for the landlord having keys to access the properties they own. Have a renter who has put a chain and lock on the front gate not allowing us onto property to check cooler for leak this morning after informing them would be there this AM. ANy...


View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.