What happens when a foreclosure is eminent in a home that is occupied by a tenant whose lease is not expired? We have a lease that goes through Jan. 31st but just got a letter from the property mgmt company that the owners have notified them of a mortgage default and that foreclosure is eminent." I’m wondering what our rights may be. Any advice? We’re in Nevada. Thanks.
Usually, when a rental property is sold the new buyer must honor existing leases. Foreclosure is the exception to the rule. Leases do not survive foreclosure.
As soon as the foreclosure auction is completed, you may get a notice to vacate. Use the time now to locate a suitable property to move to.
Many banks are evicting during a foreclosure so that the property can be delivered vacant to the new owners. I suggest you move or try to buy the property if you like it.
To add to the previous post. If you do like the property and are in any position to possibly buy, this may be a great opportunity to work out a short sale with the owner and the bank.