Title: Foreclosures for tenants - Tenants Legal Center
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Content: There may be limited exceptions but these must be viewed on a case by case method. Commercial leases are handled on a different basis outside of these residential protection laws. WHAT TO DO ABOUT PAYING RENT
When a mortgage goes into default, the landlord may still have the right to claim rent all the way up to a trustee sale (losing the property) That right is subject to landlord tenant laws. When the trustee sale is imminent, it is important to seek legal advice on how to protect your rights before withholding rent. Many landlords take action to try and save the property and prevent the trustee sale. Once the trustee sale occurs, tenants should no longer pay the former owner (ex landlord) since they no longer own the property. WHAT TO DO IF YOU NEED MORE TIME TO MOVE
As a tenant in a foreclosed home, you may be allowed to remain through the lease term or you may be asked to move in as little as 60 or 90 days. In many cases you can gain additional time to relocate or perhaps you would like to try and buy the home for a reduced price before moving. For many tenants, this could be a golden opportunity. Do not be intimidated by any paperwork regarding eviction.