There is an interesting situation that is appearing more and more. A tenant, who is renting a house or condominium from the owner, suddenly learns that the property they have been renting has been foreclosed by the landlord’s lender. The questions then become:
Who does the tenant pay the rent to?
What are the tenants rights?
Does the tenant have to move?
The answer in most cases is fairly simple. The prior landlord no longer has any interest in the property as a result of the foreclosure. Accordingly, the prior landlord no longer has a right to collect rent. The tenant is advised to call the new owner and try either enter into a new lease or agree on the terms of tenant’s delivery of possession of the premises to the new owner. Be weary of the unscrupulous former owner who still attempts to collect rent!