Foreclosure Without Notice/

[Dave Murphy]

I have a great landlord. He own the entire city block i live on. Last week the 14th of january the property i have been living at for 4 years was sold at auction on the court house steps. No notice was givein to the trutee or any other parties that this was going to take place. I just renewed my lease again on the 6th of january but that does not mean squat if the new owners wish to take possesion of the property within 90 days and claim they will be living on the property. That kills my new 1 year lease here in Floridah.

Question: Can a foreclosure take place without the trustee's knowledge? They are currently in Chicago and just got the news. They are furious. I even had the new owner come up to my place and ask if my Jacuzzi came with the building.

[Account Closed]

Dave: if you are a bonafide tenant (not a relative of the LL or one of the owners or someone with a special arrangement with the LL) your tenancy and your lease are protected by the Tenants in Foreclosure Act fro 2009 (that runs through 12/2014). Indeed, if the new owners want to occupy the house as their primary residence, you would receive the minimum required notice of 90 days. If you have a one year lease, it is protected and must be honored by the new owner. This assumes though that you are paying a fair market value rent. Something about where you said you have a great landlord, makes me concerned that maybe your rent isn't FMV? :)

If it were me, I'd put my docs together. This is the time to gather your lease and evidence of recent payments and evidence of a security deposit, if any. Since it sounds like the new owners have made themselves known already, you'll likely be hearing from them again soon. You can then make it clear to them that you plan to exercise the rest of your lease and make arrangements for where to make rent payments ,and show them your lease if asked. I suggest keeping an open mind. The new owners may want to vacate the unit and be able to make a cash for keys offer that might work for you. If not, if you are a bonfide tenant with a lease, you have rights.