Sunday 26 April 2015

Our rented house has a notice of default and will be auctioned off soon, unless a buyer submits an offer and a short sale is approved. If th...

Question

Our rented house has a notice of default and will be auctioned off soon, unless a buyer submits an offer and a short sale is approved. If the home doesn't sell at auction, the home will then become a bank owned foreclosure, what does this mean for the tenants who live there on a month-to-month lease? Thank you in advance, we are desperate.



Answer

Whether the lender (bank) or a third party is the successful bidder at the trusree's auction, the result will be a new owner. At minimum, you'll have 90 days to relocate under the Protecting Tenants at Foreclosure Act of 2009, but several other possibilities exist. The buyer might be interested in continuing to rent to you. The buyer, especially if it is the bank, may ignore you for quite a while. Or, the buyer may make you a "cash for keys" offer. If you are in a rent-control community, you may have additional protection against a forced move. Bear in mind, however, that month-to-month renters don't really have any long-term security even with a solvent landlord.



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