A bank is foreclosing on a house I rent. Can the bank kick me out?
July 30, 2009

A: Under the “Protecting Tenants at Foreclosure Act of 2009,” the bank must give a “bona fide tenant” not less than a ninety-day notice to vacate the premises. A tenancy is bona fide only if (1) the tenant is not the borrower who is being foreclosed on, (2) the tenancy was created as a result of an “arm's length” transaction, and (3) the tenancy requires a rental payment that is “not substantially less than fair market rent for the property.” If your lease was entered into prior to the notice of foreclosure, then you have the right to occupy the property for the duration of your lease with one exception: if the foreclosed property is sold to someone who will occupy it as their primary residence. In that case, you must be given a ninety-day notice to vacate “effective on the date of sale of the unit to purchaser.”

If you have questions, please contact:
John R. Wise, Esquire

JWise@TandLLaw.com
(410) 752-2468