Is Your Rental Being Foreclosed on? Know Your Rights!

If you are a renter, chances are you are nervous about the stability of your lease in this market.  Previously, if the owner of the property was foreclosed on, the tenant would be out of luck and out on the street.  The law said that leases signed after the mortgage date would be extinguished by  foreclosure.

Luckily, for tenants and prospective renters, there was a new federal statute signed into law this past May.  The new law states:

• Tenants in foreclosed properties can remain until the end of their lease.
• Month-to-month tenants are entitled to 90 days notice to terminate.
• If purchaser of the foreclosed property intends to reside in the property, then the buyer may terminate any existing lease with 90 days notice.

This new law gives renters some peace of mind concerning their current residence.  Instead of having a few days notice, tenants can expect at least 90 days notice if they must relocate.

If you need assistance finding a new home, contact me today!  This is a buyer’s market, and with the tax credits for first time home buyers and foreclosure buyers in Prince George’s and Charles Counties, this may be the right time for you to invest in a home of your own!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile