“Foreclosure Notices”; what you need to know…

That there are both federal and state laws which protect tenants in the case of a foreclosure?  State law requires the successor owner to give tenants a 60 day notice to vacate after transfer of title.  The federal law requires a 90 day notice to a tenant on a month-to-month lease.  If the new owner of the property wants to personally occupy the rental property, the new owner can give a tenant a 90 day notice to vacate.  In all other instances the terms of the lease remain binding. The federal law is currently scheduled to expire on December 31, 2014; the state law does not have an expiration date.

The lease must be arms length, must be “bona fide” and the rent must not be significantly lower than current market value.