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4 years ago
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I'm considering renting a house in lieu of purchase, what happens if the owner goes into foreclosure? If I sign a lease am I still required to vacate the property prior to the end of the lease?

Worried that if I sign a lease for 2 yrs that a property that is foreclosed on may require me to leave prior to the end of the agreement. What happens if a mgt company is working on behalf of the homeowner, are they obligated to tell me if the home is in foreclosure?
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Amanda  Nicodemus
Amanda Nicodemus
Real Estate Professional
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3 years ago
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Hello C Johns,
Why are you worried that the property may go into foreclosure? Unfortunately, this is something that the tenant has no control over. However if you're concerned about this, you can ask the landlord if he/she is current on their mortgage. Sometimes, a clause can be inserted into the lease to specify the landlord's responsibilty.

If the landlord has a management company & they become aware that the landlord has defaulted on their mortgage, then they would have to inform you.

If indeed, the property is foreclosed, the lender/bank will notify the tenant as well as the landlord. They will give you at least 10 days to move out. In rare cases, sometimes the lender/bank will honor he remaining length of your current lease.

Best of luck to you!

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