Renting a home requires you to place a great deal of trust in your landlord. If your landlord does not meet his or her obligations, you may face a crisis, not of your own making.
Suppose you have been diligently paying your rent only to find that your landlord has not been so conscientious in paying the mortgage, and now the building is under foreclosure. You may be worried about your housing situation and unsure of what to expect.
When a rental property is under foreclosure, tenants’ greatest fear is often eviction. Fortunately, New York has laws addressing this situation. When your building is in foreclosure, you still have the usual rights and protections regarding eviction. The property’s new owner must give you 90 days’ notice to vacate the property.
The bank must send all tenants written notification of the foreclosure proceedings.
During the foreclosure process, the court may appoint a neutral third party, a receiver, to manage the property. The receiver should send you a notice telling you where to submit rent payments. You should not pay rent to anyone other than your landlord without written authorization.
During foreclosure, you still have rights as a tenant. Your legal protections, such as those provided by the New York Housing Stability and Tenant Protection Act, remain in place.
When a rental property is in foreclosure, the owner is not the only person affected. Facing foreclosure as a tenant can be stressful. Fortunately, the law protects your rights to ensure that your landlord’s situation does not cause undue hardship for you.