Tenants rights when home in foreclosure?

Question

We are renting a home in Florida and we just found out the home is in forclosure. The mortage has not been paid since December 2007 and we have paid our rent in full every month. I know that foreclosure can take time, and we have a reasonable period in which to find another place to live, but is there anything we need to do to protect ourselves? A process server delivered the documents to us last night and said we have 20 days to respond. I have no idea what we are responding to. Any help would be greatly appreciated.!!

Answer 1

To whom were the papers the process server delivered addressed ?  If they were addressed to YOU, they have nothing to do with the foreclosure.  They are probably eviction papers.  Read them and find out what they are all about.

If the papers are addressed to the landlord (owner), you should have informed the process server that you were not that person.

If the process server papers are not addressed to you, you need not reply in any fashion.  They are merely copies for your information.  Only the addressee needs to reply.

Once the foreclosure action has been completed, the new owner (lender) will contact you advising you have thirty days in which to vacate the premises.  I would advise not paying rents in an amount sufficient to cover any security deposit you may have given.  If your landlord can't make mortgage payments, chances are he isn't going to refund your security either.

Answer 2

Read the papers thoroughly. You are being informed about the pending foreclosure, and also being asked whether you want to remain as tenants of the property.

Often, a lender would prefer to have the property rented rather than for it to sit empty. Under some circumstances, you may even be able to purchase the house for the loan amount, or you may renegotiate the terms of your lease.

There should be a telephone number to call. In most jurisdictions, your lease is ended when the foreclosure is formalized. Call and see what your options are.

Answer 3

I am afraid that in most states, the tenants rights expire with foreclosure - as the lease contract is with the original owner, and not the new owner after the foreclosure.

Your best recourse would be to go after the owners you had a lease contract with for the costs of early moving - although if they are being foreclosed upon, I can't imagine them having a secret stash in which they can pay you for your losses.

(Additional info: I just remembered something - the above answer is true UNLESS the mortgage being foreclosed upon was written after your current lease agreement was signed. If that is true, then the mortgage company HAS to honor the current lease agreement until it expires. They can offer to buy you out of the lease, but that is up to you. And if they decide to attempt to evict you, you may have to take them to court.)

Answer 4

Your lease no longer is valid.  

That doesn't always mean the lease-holding tenants have to leave immediately -- but those who remain join the ranks of month-to–month renters, all of whom can be terminated with proper notice, usually 30 days. And the new owners tend to move quickly to terminate, giving as little notice as is legally possible.

However, if it's continuing as a rental property, it makes no sense to evict you.  

More info:

http://www.nolo.com/article.cfm/objectId...

Add:  With your new information, yes, you are just receiving copies of papers that were sent to your landlord.