photo credit: respres
The current real estate situation is causing some unexpected problems for renters. When landlords foreclose it leaves many tenants in the scary situation of not knowing whether they’ll have a place to live or if they’re going to be out on the street once the foreclosure happens.
In most states and cities the tenant will lose their lease once the property is foreclosed. Then eviction proceedings will begin against the tenant, which at least gives them a little time to find new housing.
If you rented the unit and your new landlord knew that foreclosure proceedings were underway then you may be able to sue them for fraud and recoup some of your losses, especially if you’ve signed a yearly lease.
Unfortunately, this situation is only going to get worse as more property owners are finding foreclosures as their only alternative. If you are a tenant who is stuck in this situation you may want to contact your local tenant’s association or an attorney to see if there is any solution to your problem. It’s not a situation that has historically been good for tenants and you’ve got an uphill battle ahead. You’re best offense is a good defense and make sure that the people who you rent from are financially viable.