Tenant Protections after Foreclosure

[legalnovice]

I am currently a tenant in a home that has been foreclosed on. The home was purchased by the bank and then turned over to Freddie Mac. I have another year and a half on my lease and have no desire to move. My payments are current and have never been late. I only found out about the foreclosure this week although the home was auctioned in February of this year. In researching I have found that the home was originally in foreclosure back in 2006 with the owner paying what was due and having that case dismissed. Then another foreclosure was filed in 2008 and it dragged on within the court system and was stayed due to bankruptcy in 2009. I am assuming that there was not an agreement made between the owner and the bank because the stay was lifted and the foreclosure proceeded. I am concerned that I may be in a vulnerable position with no legal recourse. I have read about a law enacted in 2009 that protect the rights of a tenant with a lease in effect at the time of foreclosure. My lease was signed during the stay of foreclosure due to bankruptcy and the law being signed by Obama. My lease payment is due on the 15th.

1. Am I protected under the law?
2. Should I start an escrow account to hold payments until I find out where or whom to pay? If so, should this be done with the court or with a bank?

 

[jharris352]

You are protected under the law. The Tenant Protection Act (I believe it's called that) says that you can stay for 90 days is an OWNER OCCUPANT bought your house. If the bank bought it, they are required to let you stay according to the terms of your lease for up to a year. This only applies if you are a bona fide tenant: One who is not the former owner, not related to the former owner, and have a lease that predates the Notice of Default.

So, you can stay for up to a year. You will have to pay rent so I would escrow your rent. They may let you slide on the first three months rent but I would not count on it.