foreclosure renter eviction

[csi7]

What is the name of your state (only U.S. law)? Maryland

Is there any legal recourse for renters of a condo who had paid their rent to the landlord homeowner over the foreclosure sale in less than two weeks? The homeowner had not paid the mortgage, however, the renters are being forced out with less than two weeks notice.

 

[DeenaCA]

In most cases, renters cannot be forced out on short notice due to a foreclosure. They're covered by the federal Protecting Tenants at Foreclosure Act, Title VII of Public Law 111-22.

If the tenants have a fixed-term lease, they may be protected for the remainder of the lease term. There's an exception if the new owner intends to occupy the property, which usually doesn't happen because the bank most often takes title to the home. But if that were the case, or if they are month-to-month renters, they are entitled to a minimum of 90 days advance notice to vacate.

There are also exceptions if the tenants are close family members of the current landlord, or are paying substantially less rent than the market rate. Also, the tenants must continue paying rent after foreclosure (to the new owner/bank). You can get all the details at NLIHC: Renters in Foreclosure Toolkit.

It should be noted that the federal protections come into effect after the foreclosure, not before. Prior to foreclosure, the current landlord can terminate tenancy subject to state law and the terms of the lease.