My Apartment Owner Failed To Make Mortgage Payments And The Property Has Been Foreclosed, What Will Happen?

A tenant who remains on rental property after the owner, who is his landlord, has been foreclosed upon becomes a tenant at sufferance. The lease between the tenant and the original owner/landlord is terminable by the purchaser. If the purchaser wants the tenants to vacate, he must first demand possession of the property and, if refused, file a dispossessory warrant. The purchaser can choose to become a landlord, either by offering a new lease or accepting payment under the prior agreement. A purchaser at foreclosure who accepts rent from existing tenants has entered into a tenancy­at­will which can be terminated with sixty (60) days notice and which the tenant can terminate with thirty (30) days notice. A tenant residing in a foreclosed upon property should attempt to contact the new owner or the attorney handling the foreclosure to ascertain if their tenancy will continue. If a tenant does not receive assurances of continued tenancy from the foreclosure attorney or the purchaser, the tenant may argue that the lease was terminated by the foreclosure.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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