Does a foreclosure wipe out a lease for inherited tenants?

[Larry Bowers]

I've recently foreclosed on a property in MO as the lender. The inherited tenant and I are butting heads about me enforcing the existing lease and for now we're not communicating. The lease is poorly written, and with this tenant having a two-year lease (signed just before the sale date, probably intentional) with no security deposit and a rent around $225 below market, there isn't any reason to keep her other than put off some repairs and paint the interior.

I went to my attorney to see my options. She told me that a foreclosure wipes out a lease and I could evict her. What?!? I thought the lease always stood and my only options would be to hope she doesn't pay or there is some other lease violation, then evict on those grounds.

I am just confirming and want to get some advice beyond what I get with my attorney for evicting after foreclosure. I am assuming that the best practice in most cases with inherited tenants that look to be problematic is to evict straight way. If the old owner couldn't pay the mortgage, he's probably not a good landlord either.

Thanks!

[Dwayne Poster]

The notice of action, addressed to the 'tenants on the land', give them more time than most any other process. Court process, redemption, court orders. It can take many months, as I'm sure you've experienced. Your attorney may even had requested monies slated for tenant removal, as many banks will have done. The court ruling supersedes any agreements. That's why it's done, to resolve an unworkable arrangement. 

Seek legal advice though, as I only speak from my experience as a layman.  I have seen several court directives where rent tenancy is maintained, but the rent payments are redirected. It all depends on what you asked for in resolution, and what the courts final declaration were.