What renters rights does one have when a house is being foreclosed on?

Question

A family member rented a house in February. Today the Sheriff showed up at the house with foreclosure papers. The renter had been trying to get hold of the landlord for a few months now for some needed repairs to no avail. Renter finally was reached today and said he is fighting the foreclosure. Does the renter have any rights? Does he need to continue paying rent even though the likelyhood of losing their 1st/last and security?

Answer 1

This is a big thing nationally.  Generally renters do have rights when a landlord sells the place, but not upon foreclosure.  It may not be in your relatives interest to keep paying rent, even - I'd look more into it, might even need an attorney.

Answer 2

In the case of a sale the lease survives the sale and the new owner must honor the lease, but a foreclosure is different and the property must be free of inhabitants. When the Sheriff arrives it is much too late for any tenant to do anything but move. If he delays and tries "to fight it" he will be forcibly evicted according to the court order.

He and any other occupants will be escorted from the premises and all the belongings will be removed. Sorry about that.

Answer 3

The owner's mortgage papers say that the owner must at least send the rent payments to the bank; even if he doesn't pay the mortgage.  Have the renters call the number on the foreclosure paper. Ask if the bank would prefer that the rent be paid to the bank.  Banks will offer a bonus to your family member if he will cooperate and not "trash" the house because he is mad at the landlord.