Apartment Foreclosure

[linwood379]

Currently I live in an apartment which I have occupied for the past three years. The complex consists of 4 apartment buildings all owned by the same person. At the end of August, I found out that my neighbors in the other buildings received a notice that the buildings were in foreclosure, and that they would have to move in 30 days. I received no such letter. I inquired to the management company about this, and they told me that they "haven't heard anything on your building yet...don't worry about it." In the meantime, all of the other tenants have moved, and the buildings are empty except for me and my next door neighbor. I don't want to be caught unaware, and I've asked if I would be able to terminate my lease (3 months remaining) and move now before anything pops up unexpectedley about my building. I was told I could break the lease but I would still be held to the terms of the lease and would have to pay the remaing three months rent. Do I have any options at this point?

 

[Michael Wechsler]

Most tenants / renters lose their leases upon foreclosure. In the majority of states if the mortgage was recorded before the lease was signed, a foreclosure trumps the lease ("first in time, first in right" rule). Many do not pay rent while the home is in foreclosure given this situation but you should discuss with your landlord. Some foreclosures are avoided.