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What Happens if the House I Rent is Foreclosed On? (Article)

Authored By: Southeast Louisiana Legal Services (New Orleans office) LSC Funded

If the house you rent is foreclosed on . . .

Your landlord is required to notify you. Your landlord must notify you within 7 days of service of a notice of seizure by the sheriff’s office. If he fails to do so, you may have the right to sue him for damages and a penalty of $200 under La. R.S. § 9:3260.1.

 

The Protecting Tenants in Foreclosure Act (12 U.S.C. § 5201) was re-authorized in May of 2018 as part of the omnibus tax law. If you are a tenant in a foreclosed building, the immediate successor in interest (i.e. the bank or the person who bought the property at auction) must allow you to stay for:

  • 90 days if the buyer is trying to move into the property
  • 90 days if you don’t have a lease, or your lease expired, or
  • the remainder of your lease if your lease is not expired.

Note: this law does not protect you if you are the former owner of the house that was sold at auction, or the child, spouse, or parent of the former owner. The tenancy must be an “arm's-length” transaction.

 

The new owner must give you notice of her ownership and where to pay rent. The new owner must also give you notice before evicting you in accordance with the requirements above and must go through the court eviction process if you do not vacate.

Last Review and Update: Mar 24, 2020
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