You've been faithfully paying your rent each month and kept up the property while you searched for your first home and suddenly the legal notices are plastered on your windows and a bank representative is telling you to "get out".
Many first time home buyers in the middle of the search for their first home are finding out the home they're renting is in foreclosure. Their landlord has been pocketing the rent and not making his mortgage payment and now the lender is knocking on the door telling them to move.
Do you know your rights?
If you have a lease and are paying your rent, the FDIC has legislation to protect you.
KNOW YOUR RIGHTS!
FDIC Alerts Banks to Tenant Protection Act
This story appeared in Bank Digest.
The FDIC has published highlights of the “Protecting Tenants at Foreclosure Act of 2009,” which became effective on May 20, 2009. The law is intended to protect tenants from immediate eviction by persons or entities that become owners of residential property through foreclosure and extends additional protections for tenants with U.S. Department of Housing and Urban Development Section 8 vouchers. It establishes a minimum time period that a tenant can remain in a foreclosed property before being evicted. Tenants must be given at least 90 days notice; tenants with leases must be permitted to remain until the end of the lease, except that a lease can be terminated with 90 days notice by a purchaser who intends to occupy the property.
By Les Christie, staff writerFebruary 18, 2010: 1:57 PM ET
NEW YORK (CNNMoney.com) -- Renting a home that is going through foreclosure? If so, don't be fooled: Lenders can't kick you out; they have to honor the terms of your lease.
Of course, that doesn't mean that some lenders' representatives aren't trying to scare people away.
If you are trying to buy your first home and you find your landlord is in foreclosure, contact a local tenant advocacy group immediately.
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