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What happens to a renter after foreclosure?

Posted by Investor on December 19, 2011 at 12:11am in Short Sale Discussions
Once a home is foreclosed what happens to the renter? In this case, the renter has been trying to purchase the home via short sale, but time is going to run out(it has taken 4 months so far) and the home owner is 10 months late. After the foreclosure, will the bank send someone by the house that the renter can talk to about purchasing the home?

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  • Smitty December 19, 2011 at 4:01am

    Section 8 tenants have even more rights. "May 20, 2009, when President Obama signed the "Protecting Tenants at Foreclosure Act of 2009." This legislation provided that leases would survive a foreclosure -- meaning the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days' notice before having to move out (this notice period is longer than any state's non-foreclosure notice period, a real boon to tenants)."

    http://www.nolo.com/legal-encyclopedia/renters-foreclosure-what-are...

    Also, the laws in your state may protect tenants even further.

    • Jeff Payne > Smitty December 19, 2011 at 4:15am

      Very true, that is why the banks waive some cash in front of them and 99% of the time they move out.  I have done alot of cash for keys and so far only one rejected C4K and opted to stay.

      C4K is big biz for some people in my area.   As soon as they see the posting on the door, they call and claim to live there and even produce a lease which is most likely a fake.  Bank still pays them to make them go away even when we find out that the power and water have been off for a long time.

  • Jeff Payne December 19, 2011 at 3:12am

    Alot of it depends on the bank. Is it a small local bank or one of the big lenders like BofA.  If it is a large lender, they will send someone by to check occupancy.  If occupied, they will most likely offer the renter some cash to leave.  I have never been able to get BofA to take an offer from anyone until the property actually hit the market.  If the renter is proactive, they will stay in contact with the agent that is going to list it and maybe be able to get an offer in and purchase

    • Investor > Jeff Payne December 19, 2011 at 5:16am
      So do you think they would have to move out and then try to buy the house? They have already lifted the inspection contingency and are qualified buyers. The lender is cenlar.
      • Jeff Payne > Investor December 19, 2011 at 5:29am

        I do not have any experience with Cenlar.  The banks that I sell for require that the property be vacant before they put it on market.  Try contacting Cenlar REO department and ask them

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