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I unknowingly rented a house that is in foreclosure and up for auction in 2 weeks! Am I coverd by the new foreclosure law?
I rented a house from the owners son-in-law. He said they had left the state and asked him to rent it for them. I signed a 1 yr lease with him. two weeks later a neighbor told me she had seen a "notice of trustee's sale" sign in the yard right before I rented it. I did a public records search and sure enough it is up for auction in 2 weeks! Will I be able to stay until my lease is up like the new law says even though my landlord was not the owner? Do I have 90 days after the sale? who do I pay rent to? Can I sue my landlord?
Attorney answers (3)
There is new federal legislation that may allow you to keep the lease as described in the following AP press release:
"Buried in a housing law signed this week by President Barack Obama are protections that will help thousands of renters stay in their homes - at least for awhile - after their landlord has been foreclosed on. The law allows tenants to remain in their foreclosed rentals through the end of their lease and then 90 days after that before being forced to vacate by the lender. Renters without leases will have 90 days, a significant improvement over what most received before: almost no notice at all. "Until this law was enacted, there had been no national protections for any of these households," said Linda Couch, deputy director at the National Low Income Housing Coalition. "This gives renters time to adjust their lives." You should contact an attorney right away if you want to keep your lease and notify the trustee doing the foreclosure as well. Finally, there are new state law protections that require at least 60 day notice to a tenant. They were signed into law last month as part of the the foreclosure statute, RCW 61.24.060. 4 people marked this answer as good
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Sarah Lorraine Small Point-Du-Jour Reputation Level 7
Answered over 2 years ago.
Real Estate Attorney in Tacoma, WA.
If the sale is not continued, then occupants have 20 days after a trustee's sale to vacate, or an unlawful detainer (eviction) will likely be brought against you. It's difficult to predict if at the sale the bank will get the property back or if someone else will purchase it. No additional post-sale notice other than the complaint and summons for the eviction would be served on you. It's unclear if the owner signed the rental agreement or if the son-in-law had authority to do so. Depending on more of the circumstances, and whether you paid a deposit, you might have claim(s) against son-in-law and/or owner. This is becoming a more frequent problem for tenants across the state.
4 people marked this answer as good
Reputation Level 20
Answered over 2 years ago.
Lawsuit / Dispute Attorney in Chicago, IL.
President Obama signed S. 896, P.L. 111-22 on May 20, 2009. This bill includes a nationwide 90-day pre eviction notice requirement for tenants in foreclosed properties. The bill was effective on enactment May 20, 2009.
You are entitled by law to 90 days notice prior to eviction and you are allowed to occupy the property until the end of the lease - with that same 90 day notice if the property is being sold to a purchaser who will personally occupy the property, e.g. not an investor. . . You need a lawyer. Check with a lawyer in your locale to discuss more of the details. Good luck to you. God bless. NOTE: This answer is made available by the out-of-state lawyer for educational purposes only. By using or participating in this site you understand that there is no attorney client privilege between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed professional attorney that practices in the subject practice discipline and with whom you have an attorney client relationship along with all the privileges that relationship provides. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question. 1 person marked this answer as good
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