30 Days to Vacate

Unfortunately there is not much protection for renters, but there are a couple of first steps that you are legally guaranteed. Once the home is declared a foreclosure, you will have 30 days to vacate the property. If the sheriff arrives prior to the 30 days, you have the right to go to court to demand to stay in the house. Since there is not much other legal resource, you have to be creative in winning some of your freedoms back.

Call The Local News

Generating interest in your story is important, if you can win the court of public opinion, you’ll be in a better position than if you’re trying to fight the courts on your own. Preferably if the sheriff comes and drags you out with the news crew watching it happen, it can also help other renters who are being evicted due to foreclosure.

Hire A Lawyer

Get a lawyer and see if he can help you sue your landlord. Your landlord promised you a contract with the rental agreement, and by you being evicted, the landlord is not holding up their end of the contract, thus breach of contract. Also, you should look to place a lien on the house, so that you can claim your security deposit back as well.

Contact The Bank

Make sure you do not pay the bank any rental payments, the home is not owned by the bank while you are living in it, the landlord still owns the home despite it going into foreclosure, up until the last day you’re living there. In some cases, the bank will want to find a buyer for the home, and since you are currently living there, you may have the option of purchasing the home, hopefully at a distressed price and less than the cost of your current rent payment.

Cash for Keys

If you are not able to purchase the home, the bank may offer you a “cash for keys” exchange in which they pay you to move out of the property. They will ask you to broom-sweep the place and get it ready for a possible sale, thus saving them time and money on an eviction. This is a good option for renters looking to move on, and preserve as much of their lost security deposit, etc.

Start Looking for a New Place

As soon as you find out that the home is being foreclosed, your immediate option is to move out. Start looking as soon as you are given notice, and make a plan to move into another home/apartment assuming you won’t be able to buy the place.

Stay Positive and Fight On

This isn’t as bad as it could be. You’re renting, so you’re not being foreclosed, and you still have almost all of your security deposit. You certainly didn’t lose your down-payment or anything along those lines. In this case, consider this a lesson-learned, and to watch out for future rental agreements and if you do ever purchase a home, to stay secure.