Right to Notification of Foreclosure

The Right to Notification of Foreclosure is a legal protection that requires landlords to inform tenants if the rental property is facing foreclosure proceedings. This right is based on the principle that tenants should have advance notice of any changes in ownership or potential eviction due to the landlord’s financial difficulties. Under federal law, tenants are entitled to receive a written notice from the new owner or the court at least 90 days before being required to vacate the rental unit following a foreclosure sale. Some states may provide additional protections, such as the right to remain in the rental unit for the duration of the lease term or the opportunity to negotiate a new lease with the new owner. If a landlord fails to notify tenants of a pending foreclosure or misleads them about the status of the property, the tenants may have grounds for a legal claim against the landlord or the right to seek assistance from local housing agencies.