What are the rights of a tenant if the property is in foreclosure?

In Washington, tenants have certain rights if the property they are renting is in foreclosure. Generally speaking, tenants in foreclosure have the right to stay in the property up until the foreclosure sale is held, and they must receive at least 90 days’ notice of the sale. After the sale, the tenant’s lease is normally terminated and they must vacate the property. Tenants in Washington also have the right to be notified of any foreclosure proceedings that may affect their rental agreement. Though some forms of foreclosure don’t require the lender to notify the tenant, the tenant still has the right to be informed of any hearings or sales related to the foreclosure. Additionally, tenants in foreclosure have the right to be treated fairly by their landlord or the lender. This means that the landlord or lender cannot kick the tenant out without providing the required amount of notice or resorting to illegal means. Most importantly, tenants have the right to compensation from the new owner once the foreclosure sale is complete. In Washington, the law states that tenants have the right to at least one month’s rent as compensation for the disruption and inconvenience caused by the foreclosure. This money must be paid within 14 days of the sale being completed.

Related FAQs

What is a title insurance policy?
What is a real estate syndicate?
What is a mortgage loan?
What is the role of a real estate appraiser?
What is the homestead exemption?
What is a short sale?
What are the legal requirements when forming a real estate trust?
What is a wraparound mortgage?
What is a deed of trust note?
What is an assignment of a deed of trust?

What are the rights of a tenant if the property is in foreclosure?

Related FAQs

Related Blog Posts