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Tenant Rights In Foreclosure – What It Takes To Evict You

When a rental property is foreclosed on by a lender, there is a path of destruction left in the wake. One of the forgotten victims in this situation is the existing tenant and their family. Recently we have received several questions from tenants that have been contacted by the investors that purchased the rental property at auction and now want the tenant out.


When the property is foreclosed, normally your lease will also likely end. A mortgage that predates the lease has priority over the lease in the eyes of the law. That is the same no matter how much time remains on the lease. That doesn’t mean that you don’t have rights, you do not necessarily have to vacate the home  immediately. The new owner must follow the law and give the proper notices to the renter.

One of those laws was passed in 2009 specifically to protect tenants in this situation. Under the Mortgage Reform and Anti-Predatory Lending Act, a lease survives the foreclosure.  If there is no lease, the renter is treated as a month to month tenant and the new owner is generally required to allow 90 days notice before the tenant is required to leave. That is much better than the 30 days previously required. Once the notice period has expired, there is not a lot that can be done to allow you to stay in the home. A tenant could wait for an eviction action. You can read more about an eviction action on the Maricopa County Justice Court Website.

There are some exceptions to the general rules above which may apply in certain circumstances. For example, a tenant whose rental was purchased by a buyer who intends to live in the property  must leave after receiving the 90 day notice.

Whether you are an owner of an occupied property or you are a tenant of a foreclosed property , we can help preserved your rights. Please call us today with any questions.

To sit down with an experienced real estate attorney at the Wells Law Group, call (480) 428-3290 today. Please request information concerning fees before scheduling a consultation.