When you hear about foreclosures on the news or read about foreclosures in the paper, you will find that most of the attention is placed on the homeowner in trouble. Regrettably, it seems as if renters have simply just been forgotten. That doesn’t, however, mean that they are immune from foreclosure related evictions. If you are a tenant of a rental property, foreclosure should be a worry of yours.

The most common fear of renters is coming home to a sign on the door stating that they must be out within twenty-four hours. Typically, this will not happen. Many states have laws that are designed to keep this from happening. Although it does vary, depending on the state, savings banks are usually required to post foreclosure notices on the building within twenty days. These are notifications that you should be able to spot.

Another way that you can know if your rental unit is headed for foreclosure is by regularly examining listings. These foreclosure listings are easy to find online. Places in foreclosure should also be listed and be open for viewing in your local city, town, or village offices. Although you may want to abstain from outright asking your landlord if he or she is facing foreclosure, especially if no signs are showing, it may help to calm down your fears.

Even if your building is being foreclosed on, you may not necessarily have to start packing your bags. Some states make it so that your lease trumps the foreclosure. This protection often occurs when a new owner is unable to afford their mortgage. For example, is your one or two year lease with the previous owners? If you entered into the lease agreement before the mortgage in question was obtained, the purchaser of the foreclosed property may have to honor your lease.

Tenants are also provided with a little amount of foreclosure protection when they rent from a rent stabilized unit or when they are a part of a federal housing program. In many states, those on Section 8 cannot be evicted from the rental unit without reasonable cause, even when possession is transferred. Some states and local governments also state that foreclosure is not a good enough reason to evict those in rent stabilized housing units. Since these exemptions vary depending on local and state governments, be sure to verify this information ahead of time.

Although you may be offered some protection as a renter, the new owner of your property may have other plans. Know that you cannot be threatened or forcefully removed from the premises until a proper eviction notice has been processed. In most areas, this is not something that just happens overnight, so you should have some notice. Until that time arrives, you should not have your locks altered, have your belongings moved from the premises or have your utilities shut off. In the event this does happen, contact the authorities and a attorney. In the event your utilities are shut off, the health department can and should be notified.

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