What should tenant expect when house is foreclosed?

When the home that a tenant lives in is being foreclosed on, the lender with serve the tenant with a copy of the mortgage foreclosure complaint.

Chrissy: The next text question Tom is that, this is a renter in a home and the renter is saying, "What can I expect because this home is going through foreclosure proceedings, and how long would I have to be in the home once it is sold because they anticipate that there's going to be a sale date soon?"

Attorney Tom Olsen: Great question. This is coming from the tenant, not the owner of the property.

Chrissy: Correct.

Attorney Tom Olsen: When that lender does a mortgage foreclosure against that property, they are going to name the tenant as a defendant in that mortgage foreclosure. They may actually put him by name or they may put unknown tenant. When that happens, you know that the mortgage foreclosure started. They will actually serve a copy of that mortgage foreclosure complaint on you, the tenant.

Now, when you get served that complaint, there are two things you could do. One is, you can file an answer and put in there you with lease and in that circumstance if the lender does a foreclosure, the lender would be required to let you live out the terms of your lease. Even if the lender takes the property back, you would be allowed to stay there under the terms of your lease.

Now, number two, if you do nothing, do not file an answer when that lender finishes her mortgage foreclosure and they ask the owner, they take the property away from the owner, they'd be taking it away from you too. If you do not mind that you are out of there when the mortgage foreclosure is over, then do nothing. If you want to live out the terms of your lease as long as it lasts, then make sure you file an answer to that as a tenant. Does that makes sense?

Chrissy: It does, and I think that that's very helpful. Thank you Tom.

Attorney Tom Olsen: Okay.