See Title VII the Protecting Tenant at Foreclosure Act--its quite short and easy to read. It has been extended to 2014. http://www.fdic.gov/news/news/financial/2009/fil09056a.pdf
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You should pay the rent up to the date of the foreclosure action.
If you pay rent on the first and if the date is November 14th, pay half of a month's rent to the landlord. Then, once the sale happens, try to find out who the new owner is. If they don't contact you by about two weeks after the sale, you try to find them. Pay the new owner the other half of the rent for November. Then, pay them the rent each month on time.
If you don't have a lease, they will have to give you 90 days' notice before expecting you to vacate.
What else can you do to protect yourself?
According to the Las Vegas Sun, there is a tactic you can use to help ensure you are notified of the start of the foreclosure process, which usually takes about four months to complete.
“If the renter records the lease, with the parcel number affixed, in the county recorder’s office, the bank assuming that property through foreclosure proceedings should come across the document. Apprised of the existence of the renter, representatives of the bank would then be expected to notify the occupants of the ongoing proceedings. Recording the lease costs $14 for the first page and $1 per additional page, plus $25 if the documentation isn’t in the format required by the recorder’s office.”
Find out if the home you’re renting – or considering renting – is in foreclosure by following these ten steps.
Set aside funds for initial expenses related to renting, such as first and last month’s rent, utility deposits, and moving expenses. For help with budgeting, contact a housing counselor such as Consumer Credit Counseling Services.
If you find yourself a victim of an unknown foreclosure, you may sue for damages in small claims court.
Find out if your rental is in foreclosure
A new resource for renters is Rental Foreclosure.
This a free service, started by a real estate agent, that helps people determine if the house they are living in is in default on its mortgage. Just enter the property's address, city, state and county into the site, and the website will cross-reference – for free - that information against a foreclosure list for that state.
If you enter information and it returns no results, the site gives you the option of entering your e-mail address. Then, should the property go into default, the site will e-mail you with that information. Rental Foreclosure is currently running in Florida, Arizona, Nevada, Utah and Illinois.
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