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Posted by acw on December 20, 2009 at 12:51:32:

If someone enters into a lease with a property owner who is in foreclosure...does the tenant have the right to "negate" the lease?

Lets say you rent a property to someone but you are negotiating with the bank for a loam modification. In the interim, you rent this property out and collect rent.

If the tenant catches wind that you are not paying your mortgage...does that "invalidate" your lease with them?

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Posted by John Merchant on December 20, 2009 at 15:12:01:

What you're doing or not doing with a bank has nothing to do with tenant's obligations to you under his lease.

There could be any number of reasons you're not paying the bank but they don't concern the T unless that lender has the right to order the T to leave while his lease in force.

A deed of trust foreclosure will notify any occupants of the property and tell them when they have to clear out.

The T will have the right to sue you if he's got a valid lease from you that you don't/can't honor.

So if you, the O know a foreclosure is coming it's better not to enter into any long term lease.

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Posted by Chi Ming on December 24, 2009 at 19:07:22:

lives in the property. If the owner changes due to foreclosure or deed in lieu, then the rent goes to the new owner until the lease expires or the tenant no longer lives there. Old owner can sue or send you to collections (damaging your credit score) for any rent due but not paid while they owned the property.