You rent, and your landlord's home was foreclosed: what the notice means

What this notice is

What federal law gives you

• 90 days' notice: the new owner must give a bona fide tenant a written notice to vacate at least 90 days before the move-out date in the notice.
• Your lease: if you have a bona fide lease signed before the foreclosure, you can stay until the lease ends. The one exception is a buyer who will live in the home as a primary residence. That buyer can end the lease, but you still get the full 90 days' notice.
• No lease, or month to month: you still get the 90 days' notice.
• Who counts as a bona fide tenant: you are not the former owner or the owner's child, spouse or parent; the lease was an arm's length deal; and the rent is not far below market rent, unless it is lower because of a government subsidy.
• For this law, the foreclosure date is the day full title passes to the new owner. A lease signed before that day counts.
• Section 8 voucher holders get more. The new owner takes the home subject to your lease and the housing assistance contract with the housing agency. Wanting to sell the home empty is not good cause to end your tenancy. The lease can end early only if the new owner will live there and gives you at least 90 days' notice.
• State or local laws that give more time or more protection still apply. Federal law sets the floor.

What it does and does not mean

• A notice to vacate is not an eviction order. If you are still there when it runs out, the new owner generally has to go to court. See writ of possession for the last step.
• A notice of the new owner is not a notice to leave. In Illinois, the law says the new owner's notice to occupants must state that it is not a notice to vacate.
• The foreclosure is not your debt. You do not owe your landlord's mortgage.
• An offer of money to move is a choice, not an order. Read cash for keys before you sign.

States that give renters more

• California: most renters get 90 days' notice, and a tenant with a fixed-term lease can often stay until it ends. When a notice of sale is posted, renters get their own notice, which says they must keep paying rent. On homes with 1 to 4 units, a tenant living there can also bid to buy the home in the 15 to 45 days after the auction.
• Illinois: a renter with a bona fide lease is entitled to stay up to 120 days or to the end of the lease, whichever is shorter, if rent is kept current. The new owner must tell known occupants in writing who now controls the property within 21 days after the court confirms the sale.
• Maryland: most bona fide tenants can stay to the end of the lease, and month-to-month tenants must get at least 90 days' written notice.
• New Jersey: the court's tenant notice says foreclosure alone is generally not a reason to remove a good-faith tenant, and the Anti-Eviction Act protects most tenants even without a written lease. A qualifying tenant with financing may also have a right of first refusal at the sheriff's sale.
• Nevada: tenants get a separate notice of the sale. A tenant who pays monthly can generally stay at least 60 days after notice of the new owner, with the lease terms carrying over, and pays rent to the new owner. The federal 90 days still applies to bona fide tenants.
• Washington: a tenant living in the home at the sale must get 60 days' written notice to vacate unless the new owner offers a new rental agreement. The federal 90 days still applies to bona fide tenants.
• Massachusetts: the lender must tell residential tenants within 30 days when it takes possession or transfers title. Rhode Island: the lender must mail each tenant a notice of the scheduled sale that says it is not an eviction notice.
• Hawaii: after a power of sale auction, tenants living in the home can match or beat the winning bid during a 15 to 45 day window.

What to do this week

• Write down the date you got the notice and the move-out date in it. Count 90 days from when you received it and compare.
• Find your lease and your rent receipts. Make copies.
• Ask the new owner, in writing, for its name, mailing address and phone number, and where and how to pay rent. Keep a copy of your letter.
• Before you pay rent to someone new, sign a new lease or let anyone in, ask to see proof that they own the home. The CFPB warns that scammers pose as new owners. You can also check the county land records.
• Keep paying rent as your state's rules and your lease require, and keep proof of every payment. If you are not sure who to pay, ask legal aid right away.
• If you have a Section 8 voucher, call your local housing authority and legal aid now.
• If your landlord stops paying the utilities, call the utility. The CFPB says you may be able to keep service by paying the utility directly.
• Ask the new owner what happened to your security deposit. If it was not returned or moved to the new owner, the CFPB says you may need to take legal action to get it back.
• Do not move out or sign anything until legal aid has looked at your notice. See lawyers by city.

Scams aimed at renters

• Someone who says they are the new owner or its manager and wants rent paid to them, but cannot show proof of ownership.
• Anyone who asks you for a fee, a "deposit" or back rent to stop an eviction or to let you stay.
• A move-out deal that asks you to pay anything up front. Real cash for keys offers pay you.
• Anyone who says they are with the government or your lender without proof. Call the number on your own statement or letter to check.