My friend moved into a rental home a few weeks ago. Today she was out in her front yard and the neighbor told her that the owners are in the process of foreclosure. She was not aware when she signed the lease and also put down a damage deposit.
♦What will happen when the house gets auctioned?
♦What will happen to her damage deposit?
♦Is she S.O.L or what are her rights?
Related posts:
- What will happen now my landlord lost house to foreclosure?
- what happens to property in a house after foreclosure?
- How should my family deal with the date set for court because of our house is about to be put on foreclosure?
- Question on a house in foreclosure?
- What happens when your house goes in foreclosure?
5 Comments
S. O. L.
Once the home goes to foreclosure, your friend will have to move out. Your friend can take the home owners to court to get her security deposit back.
Wow that’s terrible, you can take advice from your local expert
They will most likely (Depending what state you are in) offer her ‘cash for keys’ to move IF the bank wins the house back at the auction. Cash for keys is basically when they pay you to move out. If someone else wins the house I do believe they have to give her at least a 30 day eviction notice.
She will probably not get her security deposit back unless she takes the owners to a small claims court. But if they are losing their house then they probably don’t have the money to pay her security deposit back.
I hope that helps you out a bit.
Effective May, 21, 2009, Federal law requires the existing lease be honored for the remaining time on the lease, plus 90 days. If the tenant is a month to month renter, he has 90 days to find a new home.
For more details on renters rights during foreclosure, check out this site.
http://www.msnbc.msn.com/id/30891380/