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State and Local Tenant Protections
Additional State and Local Protections for Tenants in Foreclosure Situations
Even before the enactment of the federal Protecting Tenants at Foreclosure Act, state and local governments had turned their attention to tenants’ rights after foreclosure. Since the PTFA does not preempt state or local laws that provide greater protections to tenants, many states have continued to legislate substantial additional protections for tenants. After the PTFA expired at the end of 2014, these state and local laws become the main protections for tenants after foreclosure.
These state law responses to the effect on tenants of the foreclosure crisis have varied and include providing tenants in foreclosed properties with increased notice before eviction, requiring entities that purchase property at foreclosure sales to maintain the property, requiring utility companies to continue to provide utilities post foreclosure, and requiring the new owner to be responsible for the tenant’s security deposit. In addition, in jurisdictions requiring just cause to evict, state and local laws have been interpreted to prevent eviction due solely to a foreclosure and, recently, have been expanded to cover all foreclosed upon units.
Pre-Foreclosure Sale Notice to Tenants (Alaska Stat. § 34.20.070)
Within 10 days after recording the notice of default, the trustee must mail a copy of the notice by certified mail to any person in possession of or occupying the property.
Disclosure of Foreclosure to Prospective Tenants (Ariz. Rev. Stat. Ann. § 33-1331)
Arizona requires a landlord to notify prospective tenants if the property is being foreclosed upon. If the owner fails to comply, the tenant may recover damages and seek injunctive relief. The law does not cover multifamily properties of four or more units.
Pre-Foreclosure Sale Notice to Tenants (Ariz. Rev. Stat. Ann. § 33-1331)
Arizona requires a landlord to notify existing tenants of a pending foreclosure sale. If the owner fails to comply, the tenant may recover damages and seek injunctive relief. The law does not cover multifamily properties of four or more units.
Pre-Foreclosure Sale Notice to Tenants (Cal. Civ. Code §§ 2924.8, 2924b(c)(2)(D))
In California, a trustee is required to post and mail a notice of trustee sale at least 20 days before the foreclosure sale. The pre-foreclosure notice informs tenants that they must receive 90 days’ notice if the post-foreclosure owner wants to evict them after foreclosure, and that landlords must honor existing fixed-term leases. The section expressly provides that it applies only to “loans secured by the residential real property and if the billing address for the mortgage is different than the property address.”
A tenant with a recorded lease is also entitled to receive a copy of the notice of default within one month after the notice of default is recorded.
Notice and Lease Protections for Tenants after Foreclosure (Cal. Code Civ. Proc. § 1161b)
Effective on January 1, 2013, AB 2610 extended the existing 60-day notice requirement under state law for tenants after foreclosure to 90 days. AB 2610 also adds protections for leases after foreclosure by tracking the protections in the federal PTFA and placing the burden of proof on the post-foreclosure owner. To ensure that tenants can present these defenses in court, AB 2610 also reforms the “prejudgment claim of right to possession” procedure to remove the existing 10-day deadline by which unnamed tenants must intervene in the eviction in order to assert their tenancy rights.
Protecting Tenants from Post-Foreclosure Nonpayment Evictions (Cal. Civ. Code § 1962)
Existing California law requires new owners to notify tenants within 15 days of a change in ownership but does not specify a remedy if the owner fails to do so. During the current foreclosure crisis, this gap created situations where tenants faced post-foreclosure evictions for nonpayment of rent even when the tenant did not know where or how to pay rent. Effective January 1, 2013, AB 1953 fills in this gap by providing that an owner who fails to properly notify tenants where to pay rent may not evict a tenant for nonpayment of rent accrued during the period of noncompliance.
Disclosure of Foreclosure to Prospective Tenants (Cal. Civ. Code § 2924.85)
California law requires owners of 1-4 unit properties to disclose a pending foreclosure to prospective tenants. The written disclosure must be made in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. If the landlord fails to make the disclosure prior to entering into the lease, the tenant may either deduct one month’s rent from future rental obligations or sue the landlord for twice the actual damages.
California law provides that utilities must give written notice to non-subscriber residential users of electrical, water, heat and/or gas in individually metered and master-metered units of both single family homes and multifamily buildings prior to extinguishing those utility services. The notice must be in Spanish, Chinese, Tagalog, Vietnamese, and Korean in addition to English. Occupants are allowed to become customers of the utility corporation or public utility without paying the landlord's arrearages. Tenants who elect to put utilities in their own names under these provisions may deduct the utility expenses from rent.
Record Sealing of Post-Foreclosure Evictions (Cal. Civ. Proc. Code 1161.2(a)(6))
Effective January 1, 2011, post-foreclosure eviction records will be masked unless the plaintiff prevails within 60 days of filing against all defendants after a trial.
Cover Sheet Requirement for Post-Foreclosure Evictions (Cal. Civ. Proc. Code 1161c)
Effective January 1, 2011, most eviction notices that proceed a post-foreclosure unlawful detainer must be accompanied by a cover sheet that explains tenants' rights after foreclosure and advises tenants to seek legal help. Notices that unequivocally give tenants at least 90 days to vacate are exempt from the cover sheet requirement, but they still must include the language on tenants' rights and advice to seek legal help.
Good Cause Eviction Protection (Berkeley Municipal Code § 13.76.130)
Under the “good cause for eviction” provisions in Berkeley’s Rent Ordinance, good cause is required to evict tenants from most properties in Berkeley.
Good Cause Eviction Protection for Rent-Controlled Units (Beverly Hills Municipal Code Chapters 5 and 6)
Good cause is required to evict from rent-controlled units in Beverly Hills.
Good Cause Eviction Protection for Rent-Controlled Units (East Palo Alto Municipal Code § 14.04.160)
Good cause is required to evict from rent-controlled units in East Palo Alto.
Good Cause Eviction Protection (Glendale Municipal Code § 9.30.030)
Good cause is required to evict from most rental units in Glendale.
Good Cause Eviction Protection for Rent-Controlled Units (Hayward Residential Rent Stabilization Ordinance)
Good cause is required to evict from rent-controlled units in Hayward.
Good Cause Eviction Protection (Los Angeles Municipal Code ch. IV, art. 14.1, § 49.92)
In Los Angeles, good cause is required to evict from rent-controlled properties, and foreclosure is not a good cause to evict. A recently enacted ordinance temporarily extended the good cause requirement to non-rent controlled properties acquired through foreclosure.
Good Cause Eviction Protection (Maywood Municipal Code § 8.17.030)
In Maywood, good cause is required to evict tenants from most units.
Good Cause Eviction Protection (Oakland Municipal Code § 8.22.360)
In Oakland, tenants cannot be evicted without just cause.
Good Cause Eviction Protection (Richmond Municipal Code § 7.105.020)
Richmond law prohibits post-foreclosure owners from evicting tenants without good cause.
Good Cause Eviction Protection (San Diego Municipal Code § 98.0730)
Residential tenancies of more than two years duration may not be terminated except for cause.
Good Cause Eviction Protection (San Francisco Admin. Code §§ 37.9, 37.9D)
In San Francisco, good cause is required to evict from rent-controlled properties, and foreclosure is not a good cause to evict. Gross v. Superior Court, 217 Cal. Rptr. 284 (1985). A recent ordinance extends the good cause requirement to cover non-rent controlled properties acquired through foreclosure.
Good Cause Eviction Protection for Rent-Controlled Units (Santa Monica Rent Control Charter Amendment § 9002)
Good cause is required to evict from rent-controlled units in Santa Monica.
Good Cause Eviction Protection (West Hollywood Rent Stabilization Ordinance § 17.52.010)
West Hollywood prevents owners from evicting tenants without just cause. An exception exists for tenants in single family homes, where the landlord can evict if the eviction notice is given within 30 days of the foreclosure sale and relocation assistance is paid to the tenant.
Colorado (power of sale with limited court supervision)
Pre-Foreclosure Sale Notice to Tenants (Colo. Rev. Stat. § 38-38-103)
No more than 20 days after a notice of election and demand is recorded, the public trustee must mail a combined notice of sale, right to cure, and right to redeem to the occupant of the property, addressed to “occupant” at the property address.
Connecticut (judicial foreclosure)
Eviction Protection (Conn. Gen. Stat. § 49-31p)
Connecticut has enacted PTFA’s 90-day notice requirement and protection for long-term leases into state law until the end of 2017.
Good Cause Eviction Protection for Elderly or Disabled Tenants (Conn. Gen. Stat. § 47a-23c)
In Connecticut, good cause is required to evict elderly or disabled tenants from multifamily properties, and foreclosure is not a good cause to evict. First Fed. Bank v. Whitney Dev. Corp., 677 A.2d 1363 (Conn. 1996).
Cash for Keys (Conn. Gen. Stat. § 47a-20f)
No mortgagee, lienholder or successor in interest can require a tenant to waive any legal rights or remedies in exchange for accepting an incentive to vacate the foreclosed property, with the exception of “the right to bring an action to reclaim a security deposit.” Incentives must be at least equal to the tenant’s security deposit plus interest, or, if no record of the amount of the security deposit exists (or if the tenant did not pay a security deposit), the tenant is entitled to two months’ rent, or $2,000, whichever is greater.
District of Columbia (non-judicial foreclosure through power of sale)
Good Cause Eviction Protection (D.C. Code § 42-3505.01)
D.C. law restricts landlord’s authority to evict protected tenant after foreclosure. Administrator of Veterans Affairs v. Valentine, 490 A.2d 1165 (D.C. 1985).
Florida (judicial foreclosure)
Eviction Protections (D.C. Code § 42-3505.01)
Effective June 2, 2015, HB 779 allows tenant to remain in possession of foreclosed property for 30 days following receipt of written notice.
Pre-Foreclosure Sale Notice to Tenants (Idaho Code Ann. § 45-1506)
At least three good faith attempts must be made to serve a copy of the notice of sale “upon an adult occupant of the real property in the manner in which a summons is served.” Each time service is attempted, a copy of the notice of sale must also be posted in a conspicuous place on the property, unless a copy previously posted remains conspicuously posted.
Illinois (judicial foreclosure)
Eviction Protection (735 Ill Comp. Stat. § 5/9-207.5)
Illinois has enacted PTFA's 90-day notice requirement and protection for long-term leases into state law. In addition, the statute clarifies that a foreclosure action does not terminate bona fide leases, regardless of whether a tenant is named as a defendant to the foreclosure case.
Notice requirements (735 Ill. Comp. Stat. § 5/15-1508.5)
A lender or purchaser who, as a result of the foreclosure, takes title at the confirmation of sale must, within 21 days, make a good faith effort to identify everyone who lives at the acquired property. During that same 21-day period, the lender or purchaser must also provide written notice by personal service or first-class mail to each known resident of the property informing him or her that control of the property has changed.
The notice must include: (1) the name and case number of the foreclosure case, and the court where the foreclosure case was pending; (2) the name, address, and telephone number of an individual or entity whom residents may contact with concerns about the property or to request repairs; and (3) the following language, or language that is substantially similar: “This is NOT a notice to vacate the premises. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights that you may have.”
The lender or purchaser is under a continuing duty to serve this written notice on any tenant that it learns is occupying the property, even if the tenant is discovered after the initial 21-day period. A truncated version of this notice must also be posted at the premises.
If a receiver (or mortgagee in possession) is appointed to operate and manage the subject property while the foreclosure case is pending, the receiver also has the duty to identify residents and serve them with a similar notice.
Tenant Protections during the Foreclosure Process (735 Ill. Comp. Stat. § 5/15-1704)
A receiver appointed by the court may not raise the rent of a month-to-month tenant without leave of court. Further, a receiver or mortgagee in possession must accept rental payments from tenants and HAP payments on behalf of voucher holders or other third-party rental assistance payments during the foreclosure case.
Record Sealing of Post-foreclosure Evictions (735 Ill. Comp. Stat. § 5/15-1701(h)(5))
In Illinois, eviction records of occupants “who would have lawful possession of the premises but for the foreclosure of a mortgage on the property” are sealed.
Foreclosure Notice to Tenants (Chicago Municipal Code § 5-12-095)
Chicago requires owners of properties facing foreclosure to notify all of their tenants in writing “that a foreclosure action has been filed against the owner or landlord.” Owners must also give written notice to “any other third party who has a consistent pattern and practice of paying
rent to the owner or landlord on behalf of a tenant.” If a tenant demonstrates that the owner or landlord violated this section, he or she is entitled to recovery of $200.
Disclosure of Foreclosure to Prospective Tenants (Chicago Municipal Code § 5-12-095)
Chicago’s Residential Landlord and Tenant Ordinance requires a landlord of a property undergoing foreclosure to provide written notification to prospective tenants that the landlord is named in a foreclosure complaint. If the owner fails to comply, the tenant may terminate the rental agreement with a 30-day notice.
Relocation Assistance (Chicago Municipal Code § 5-12-095)
Chicago law requires relocation assistance of $10,600 to foreclosed tenants.
Pre-Foreclosure Sale Notice to Tenants (Me. Rev. Stat. Ann. tit. 14, § 6203-A)
In Maine, a mortgagee must provide a copy of the notice of sale to tenant if the mortgagee knows or should know that the property is occupied as a rental unit. The notice may be served on the tenant by the sheriff or by mail at the tenant’s last known address.
Eviction Protection (Me. Rev. Stat. Ann. tit. 14, § 6001)
A bona fide tenancy in a building for which a foreclosure action is pending or for which a foreclosure judgment has been entered may be terminated only pursuant to the provisions of the former federal Protecting Tenants at Foreclosure Act.
Utility Shutoff Protections (Me. Rev. Stat. Ann. tit. 14, § 6024-A)
If a landlord fails to pay for utility service in the name of the landlord, the tenant may pay for the utility service and deduct the amount paid from the rent due to the landlord.
Maryland’s new notice statute applies to all foreclosures docketed on or after June 1, 2010. The legislation incorporates PTFA protections for bona fide tenants into state law without a sunset date and clarifies how these protections apply in Maryland. Additionally, pre-foreclosure sale, the statute requires the foreclosing entity to send notices to “occupants” twice prior to the foreclosure sale. Each notice must inform occupants that renters likely have the rights to lease survival and to receive a 90-day notice to vacate from the new owner.
Post-foreclosure sale, the revised statute provides that the 90-day notice to vacate may only be sent by the new legal title holder; it must be sent by first class and certified mail; and it must specify the date certain by which the tenant must vacate the property as well as the legal basis for termination. The statute clarifies that the 90-day notice and lease survival protections apply to all bona fide tenants who entered into leases prior to transfer of legal title to the foreclosure sale purchaser.
Newly enacted SB 516 ensures that tenants receive timely notice of who owns their rental property after foreclosure and how to pay rent. Under the new law, a purchaser of a one-to-four unit property at foreclosure may not collect any rent from tenants unless the purchaser first inquires whether the property is renter-occupied and provide the tenants with contact information of the purchaser or the property manager that is hired to manage the property. If the purchaser fails to gives notice, the purchaser waives the right to collect rent until the notice defect is corrected.
PTFA Compliance Check (Md. R. 14-102)
If the purchaser ascertains that a tenant resided in the foreclosed property after a reasonably diligent inquiry, the purchaser must give proof that a proper eviction notice under Protecting Tenants at Foreclosure Act has been given and that the tenant has no further right to possession before a court can entertain a motion to grant a judgment of possession.
Massachusetts (primarily non-judicial foreclosure through power of sale)
Just Cause for Eviction after Foreclosure (Mass. Gen. Laws ch. 186A)
Foreclosing owners may not evict tenants after foreclosure except for just cause. Foreclosing owners are also required to provide notice of change in ownership to tenants before they may evict existing tenants.
Protection for Subsidized Tenants (Mass. Gen. Laws ch. 186, § 13A)
In Massachusetts, foreclosure does not terminate tenancies subsidized under state or federal law.
Eviction protections (Minn. Stat. § 504B.285)
Minnesota has revised its post-foreclosure notice requirements to substantially parallel the tenant protections in the PTFA.
Pre-Foreclosure Notice to Tenants (Minn. Stat. § 580.042)
For foreclosures on properties with one to four dwelling units, Minnesota law requires the foreclosing party to give notice to tenants indicating that the lease is still valid during the foreclosure process. The notice must also state that during the six-month redemption period following the foreclosure sale, the tenant cannot be asked to move. Also, the new owner must give written notice following the redemption period to evict the tenant. A violator of this statute is liable to the tenant for $500.
Disclosure of Foreclosure to Prospective Tenants (Minn. Stat. § 504B.151)
Once a landlord has received a contract for deed of cancellation or notice of a mortgage foreclosure sale, the landlord may not enter into a periodic lease of more than two months or for a term that extends beyond the redemption period. If the landlord enters into a periodic or short-term lease, then the landlord is required to provide written notice to the prospective tenant of when the mortgagor’s redemption period ends. A violator of this statute is liable to the tenant for $500.
Utility Shutoff Protections (Minn. Stat. § 504B.215)
For master-metered buildings in Minnesota, utility companies must post notice before shutting off utilities for nonpayment. Tenants are allowed to continue service by paying current charges, but they are not required to pay for any arrearages incurred by the landlord. In buildings with fewer than five units, tenants have the right to put the utility accounts in their own names.
Security Deposit (Minn. Stat. § 504B.178)
Minnesota law allows tenants to apply their security deposit to rent during the redemption period following a foreclosure sale. The tenant’s withholding of any rent for the last payment period of the residential rental agreement creates a rebuttable presumption that the tenant intended the deposit to serve as payment for the rent. When the landlord’s interest in the property ends (for example, because of death, foreclosure or contract for deed cancellation), the security deposit must be transferred to either the new owner or the tenant. This transfer must take place within 60 days after the current landlord’s interest in the property ends or when the new landlord is required to return the security deposit.
Record Sealing of Post-foreclosure Evictions (Minn. Stat. § 484.014)
In Minnesota, eviction records shall be expunged if a tenant in a foreclosed property did not receive a proper eviction notice.
Utility Shutoff Protections (Minneapolis Code of Ordinances § 244.590)
In Minneapolis, a local ordinance provides that tenants in a building may pay any rents owing to the owner or operator of the building directly to the utility company. The utility company must make available to any requesting tenant or tenant’s representative the utility account of the multiple dwelling or duplex housing facing a shutoff. Any such payment shall be considered a reduction of rent owed by the tenant and a reduction of the utility bill owed by the owner or operator of the building.
Foreclosure Notice to Tenants (Minneapolis Code of Ordinances § 244.265)
In Minneapolis, a landlord must notify tenants of a foreclosure within seven days of the receipt of a foreclosure notice.
Foreclosure Notice to Tenants (St. Paul, Minn., Code of Ordinances § 53.01)
In St. Paul, a landlord must notify tenants if the landlord receives notice of a foreclosure.
Disclosure of Foreclosure to Prospective Tenants (St. Paul, Minn., Code of Ordinances § 53.01)
In St. Paul, a landlord must inform prospective renters if a rental property is in foreclosure.
Pre-Foreclosure Sale Notice to Tenants (Mont. Code Ann. § 71-1-224)
Notice of sale must be served personally at least 30 days before the sale date “upon the occupant of the property so advertised for sale.”
Pre-Foreclosure Sale Notice to Tenants (Nev. Rev. Stat. § 21.130)
Nevada requires that a pre-foreclosure notice be “served upon any tenant or subtenant, other than the judgment debtor” who occupies the property. The statutory scheme requires notice to be posted in three separate public places and published for three successive weeks. Willfully removing or defacing a posted notice of sale is unlawful.
Eviction Protections (Nev. Rev. Stat. § 40.255)
Nevada law requires a 60-day notice for month-to-month tenants. For tenants with a period of less than a month, the notice must be given at least the number of days in the rental period.
Disclosure of Foreclosure to Prospective Tenants (Nev. Rev. Stat. § 118A.275)
Nevada requires a landlord to provide written disclosure to a prospective tenant if the property to be leased or rented is the subject of any foreclosure proceedings. A willful violation constitutes a deceptive trade practice under Nevada law.
New Hampshire (non-judicial foreclosure through power of sale)
Good Cause Eviction Protection (N.H. Rev. Stat. Ann. § 540:2)
In New Hampshire, good cause is required to evict tenants from restricted properties. Single-family houses acquired by banks or other mortgagees through foreclosure are defined to be nonrestricted properties. N.H. Rev. Stat. Ann. § 540:1-a.
New Jersey (judicial foreclosure by suit in equity)
New Jersey requires foreclosing parties to serve, by personal service or by regular and certified mail, a “Notice to Residential Tenants of Rights During Foreclosure” to all residential tenants in the property being foreclosed. Notice of sale posted on the premises must also contain the Notice to Tenants. Notice informs tenants that foreclosure is not a valid ground to remove a bona fide tenant.
Good Cause Eviction Protection (N.J. Rev. Stat. § 2A:18-61.1 et seq)
New Jersey’s Anti-Eviction Act prohibits evictions that are based on foreclosure. Chase Manhattan Bank v. Josephson, 638 A.2d 1301 (N.J. 1994).
Post-foreclosure Notice (N.J. Rev. Stat. § 2A:50-70)
In New Jersey, a new owner after foreclosure must make a good faith effort to identify tenants living on the property. Within 10 business days of obtaining title, the new owner must post a written notice prominently on the door of each unit and send the notice to each tenant by regular and certified mail. The notice must be in English and Spanish and must inform the tenant that he has a right to remain after foreclosure, even if the tenant does not have a written lease. In a property with more than 10 residential units, the notice must also be conspicuously displayed in a common area in each building of the property. A person who violates the statute is liable to the tenant for $2,000 per violation, plus attorney’s fees and costs.
Habitability (N.J. Rev. Stat. § 2A:50-71)
In New Jersey, a lender may not harass a tenant into vacating the property by failing maintaining a property between the time a foreclosure filing is made and the sale.
New York (judicial foreclosure)
Foreclosure Notice to Tenants (N.Y. Real. Prop. Acts. Law § 1303)
New York requires the foreclosing party to notify tenants of an impending foreclosure through a notice delivered by both certified and first-class mail.
Eviction Protections (N.Y. Real. Prop. Acts. Law § 1305)
New York has enacted many provisions of the Protecting Tenants at Foreclosure Act into state law. Like the PTFA, New York law gives tenants the right to remain in their homes after a foreclosure sale for 90 days or the remainder of their lease, whichever is longer. Also similar to the PTFA, New York law allows a purchaser who intends to reside in the property as his or her primary residence to evict the tenant with a 90-day notice, even if the tenant has more than 90 days remaining on the lease.
New York law also grants tenants new protections in addition to those in the PTFA. Specifically, New York law covers tenants in properties that were disposed through other means, such as a short sale or deed in lieu of foreclosure, if the property is transferred during the pendency of a foreclosure proceeding. Finally, unlike the PTFA, which expires at the end of 2012, the New York law does not contain a sunset provision.
Habitability (N.Y. Real. Prop. Acts. Law § 1307)
In New York, there is a statutory duty on lenders to maintain foreclosed properties during the time period between the entry of judgment of foreclosure and sale and the transfer of title at a foreclosure sale.
Good Cause Eviction Protection in Rent-Controlled or Rent-Stabilized Properties
In Nassau County, good cause is required to evict tenants from rent stabilized units.
Good Cause Eviction Protection in Rent-Controlled or Rent-Stabilized Properties (9 N.Y.C.R.R. § 2204.1)
In New York City, purchaser of a rent-controlled or rent-stabilized property at foreclosure sale must have good cause to evict, and foreclosure is not a good cause. United Institutional Servicing Corp. v. Santiago, 310 N.Y.S.2d 733 (Civ. Ct. 1970).
Good Cause Eviction Protection in Rent Stabilized Properties
In Rockland County, good cause is required to evict tenants from rent stabilized units.
Good Cause Eviction Protection in Rent Stabilized Properties
In Westchester County, good cause is required to evict tenants from rent stabilized units.
Pre-Foreclosure Sale Notice to Tenants (N.C. Gen. Stat. Ann. § 45-21.17)
North Carolina requires the posting of a notice 20 days in advance of a foreclosure sale. The notice must also be mailed first class to interested parties at least 20 days before sale, and if the property has fewer than 15 rental units, notices must be mailed to tenants occupying the property.
Eviction Protections (Or. Rev. Stat. § 86.782)
In Oregon, foreclosure purchasers must provide 30 days’ notice for month-to-month tenants and 60 days’ notice for tenants with fixed-term leases.
Notices to Tenants (Or. Rev. Stat. § 86.771)
Notice is addressed to occupant or tenant and informs tenants that month-to-month tenants must receive at least 30 days' notice and tenants with fixed-term leases must receive at least 60 days’ notice. This notice can be given on or after the sale date. The notice states that federal law may grant additional rights. Notice informs tenants that they may apply security deposit and prepaid rent toward current rent obligations and that that they must notify landlord in writing if they elect to do so.
Security Deposit (Or. Rev. Stat. § 90.367)
Oregon law now allows tenants in properties undergoing foreclosure to apply their security deposit and any prepaid rent toward their rental obligation. To take advantage of this law, the tenant must provide written notice to the landlord of the tenant’s intent to do so.
Disclosure of Foreclosure to Prospective Tenants (Or. Rev. Stat. § 90.310)
Oregon requires a landlord of a one-to-four unit property to notify prospective tenants if, at the time of execution of the rental agreement, the property is being foreclosed upon. If the owner fails to comply, the tenant may recover twice the actual damages or monthly rent, whichever is greater, and any prepaid rent.
Rhode Island (primarily non-judicial foreclosure)
Just Cause for Eviction after Foreclosure (R.I. Gen. Laws § 34-18-38.2)
Foreclosing owners may not evict tenants in one to four unit properties after foreclosure except for just cause. Foreclosing owners are also required to provide notice of change in ownership to tenants before they may evict existing tenants.
Pre-Foreclosure Sale Notice to Tenants (Providence Code of Ordinances § 13-259)
At the same time a notice of sale is provided to the mortgagor, lenders/mortgagees are required to serve, by mail and posting, a notice to all bona fide tenants in the property being foreclosed upon. The notice, "(i) stating that the real estate is to be sold in foreclosure, which may affect the tenant's right to continue to live in the property; (ii) stating the date, time and place of sale; (iii) providing the address and telephone number of Rhode Island Legal Services; and (iv) providing the name, address and telephone number of HUD-approved counseling agencies in Rhode Island," must be in both English and Spanish. A successor in interest may not evict bona fide tenants until such notice is given.
Eviction Protections (Providence Code of Ordinances § 13-25)
In Providence, bona fide tenants, meaning tenants who entered into a rental agreement with the former landlord or mortgagor at least 30 days before the foreclosure sale, may remain in their homes until the end of the lease term. For bona fide tenants without leases, the tenancy is converted into a month-to-month tenancy.
Post-foreclosure Notice Requirement (Providence Code of Ordinances § 13-25)
A successor in interest after foreclosure must post and mail each bona fide tenant a notice, in English and Spanish, informing the tenant that the the property was sold at a foreclosure sale. The notice must also state "the name and address of the successor in interest, and/or managing agent so that the tenant may know to whom the ongoing rental payments should be made." A successor in interest may not evict bona fide tenants until such notice is given.
Utility Services (Providence Code of Ordinances § 13-25)
If essential utility services, including heat, running water, hot water, electric, sewer or gas, were provided by the foreclosed mortgagor, the successor in interest after foreclosure is required to continue providing these utility services to bona fide tenants.
Foreclosure Processes on Residential Rental Properties, House Bill 243, went into effect on May 11, 2010. HB 243 requires a notice of tenants’ rights be posted on each door or mailed to tenants in foreclosed properties. The notice references the former Protecting Tenants at Foreclosure Act in that renters may be allowed to occupy the rental unit until the rental agreement expires or a minimum of 90 days. The notice alerts renters that they must continue to pay their rent. The law sunsets on December 31, 2016.
Vermont (judicial or strict foreclosure)
Foreclosure Notice to Tenants (Vt. Stat. Ann. tit. 12 § 4932)
The plaintiff in a judicial foreclosure must join tenants in the action. The complaint is mailed to the tenant, and it must be addressed to “occupant” if the rental agreement is not recorded. The notice informs tenants that the property they live in is in foreclosure and that their right to remain on the property may end when the foreclosure is completed. The notice also tells tenants that they must tell the court their names and addresses to be kept informed of the status of the foreclosure action.
Disclosure of Foreclosure to Prospective Tenants (Vt. Stat. Ann. Tit. 12 § 4932))
Upon receipt of a foreclosure complaint, the mortgagor must disclose to “each tenant who enters into a residential rental agreement” that the property is in foreclosure and that, in the event the mortgagor is unable to redeem the property, the tenant may be required to vacate the premises on 30-days notice.
Foreclosure Notice to Tenants and Disclosure of Foreclosure to Prospective Tenants (Va. Rev. Stat. § 55-225.10)
Virginia law requires a landlord to provide a tenant or prospective tenant notice of any mortgage default, notice of mortgage acceleration, or notice of foreclosure sale related to the property within five business days after written notice from the lender is received by the landlord.
Security Deposit (Va. Code Ann. § 54.1-2108.1)
The holder of the landlord's interest in the dwelling unit at the time of termination of tenancy must return any security deposit and any accrued interest that is owed to the tenant, whether or not such security deposit is transferred with the landlord's interest by law or equity, and regardless of any contractual agreements between the original landlord and his successors in interest.
Pre-Foreclosure Sale Notice to Tenants (Wash. Rev. Code § 61.24.143)
Washington requires pre-foreclosure notices to be “posted in a conspicuous place on the property” or “served upon any occupant of the property.” Additionally, Washington requires that an additional pre-foreclosure notice be mailed to the resident of property subject to foreclosure sale. The additional notice must contain the following text: “The foreclosure process has begun on this property, which may affect your right to continue to live in this property. Ninety days or more after the date of this notice, this property may be sold at foreclosure. If you are renting this property, the new property owner may either give you a new rental agreement or provide you with a sixty-day notice to vacate the property. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights that you may have.”
Notice Requirements (Wash. Rev. Code § 61.24.146)
Washington law requires a tenant to be given sixty days’ notice after foreclosure.
Good Cause Eviction Protection (Seattle Code § 22.206.160(c))
Good cause is required to evict from many buildings in Seattle, but the sale of a single family home is a good cause to evict.
Last updated: 1/23/2015