This situation is covered by PTFA (protecting tenants at foreclosure act), passed in 2009.
- There is nowhere in the law says tenant can get 90 days free rent, so it is bull shit.
- You have to honor the 3-year lease, the lease is still binding. You cannot just go there and ask them to sign a new lease.
- If they stop pay the rent, you can start Eviction for non-payment,
The Tenant’s argue point in this case though is whether the “previous owner’s foreclosure process” constitutes “breach the lease”.
To determine that, you need to read the language in the lease.
For PTFA, See below:
In some states the lender could just show up on the doorstep and order the tenants out of the property. Many states provided that tenants
need be given only a few days to vacate the property.
But with the passage of the PTFA tenants, no matter where they live in the United States, are given at least 90-days' notice, or the
duration of their lease, before they have to vacate the property. This means that if you signed a one year lease in January, you will not have to move until the expiration of that lease at the end of December, no matter when the foreclosure sale takes place. If, however, your lease expires less than 90 days after the foreclosure sale, or you have a month-to-month tenancy, you will have at least 90 days to move. And while that's wonderful news for California tenants, it's even better news for the many tenants throughout the country who face instant eviction after a foreclosure sale.
need be given only a few days to vacate the property.
But with the passage of the PTFA tenants, no matter where they live in the United States, are given at least 90-days' notice, or the
duration of their lease, before they have to vacate the property. This means that if you signed a one year lease in January, you will not have to move until the expiration of that lease at the end of December, no matter when the foreclosure sale takes place. If, however, your lease expires less than 90 days after the foreclosure sale, or you have a month-to-month tenancy, you will have at least 90 days to move. And while that's wonderful news for California tenants, it's even better news for the many tenants throughout the country who face instant eviction after a foreclosure sale.
