Rights

• Renters cannot be summarily evicted just because the property they are living in has been foreclosed upon. If you have a lease, the foreclosing bank or the new owner is obligated under the law to honor that lease. The only exception to the lease rule is if a new owner intends to live in the property himself, in which case he can give you 90 days' notice. If you are a month-to-month renter, the new owner must give you at least 90 days' notice to quit the property.
  
  

Rent

• If you fail to abide by all of the clauses in your lease, you may be at risk of eviction, and most foreclosing lenders will be looking for an excuse to get rid of inconvenient renters. You must pay your rent on time and in full. Technically, as soon as your landlord defaults on his mortgage, his lender has the right to receive your rent payments. If this is the case, you will receive written notice from the lender of this circumstance.
  
  

Precautions

• There may be times when you cannot determine who is properly the owner and who has a right to collect your rent. Or the owner may tell you he is disputing the foreclosure and you should pay your rent to him. In this circumstance, you should ask to see legal paperwork that proves the right of ownership before you hand over your rent to either party. If you feel you have no choice but to pay and you are still unsure, get a receipt for your payment and retain it with your records.
  
  

Setting Rent Aside

• If the lender has a glut of foreclosures on its books, it's possible you may have trouble contacting anyone at the company in order to sort out your situation. If you have not been asked for rent, and if you have been unable to find out where to send your payments, keep records of your attempts to pay, and then set the rent aside in a separate account, so that it is available when it's called for. All of these measures should protect you against possible eviction.