Renting a home that was foreclosed in New Jersey: your rights

Your rights as a renter in New Jersey, in order

1. Federal floor: 90 days and your lease

   After the new owner takes title

   Under the Protecting Tenants at Foreclosure Act, a bona fide tenant gets written notice at least 90 days before having to move, and a lease signed before the foreclosure lasts until it ends unless the buyer will live in the home. Section 8 voucher holders keep their lease and housing assistance contract. New Jersey law gives most renters more. See our [renter's notice after foreclosure](/notices/tenant-notice-after-foreclosure/) page.

   Pub. L. 111-22 § 702 (12 U.S.C. § 5220 note); 42 U.S.C. § 1437f(o)(7)

2. Notice during the foreclosure case

   With the summons or the lender's first contact with you

   If the lender serves you with the foreclosure summons and complaint, or contacts you during the case, or asks you to move before the sale, it must include the court's Notice to Residential Tenants of Rights During Foreclosure.

   N.J.S.A. 2A:50-70(e)

3. Notice to Tenants from the new owner, and who to pay

   Within 10 business days after title transfers

   Whoever takes title at the sheriff's sale or by deed in lieu must give you a Notice to Tenants in English and Spanish telling you who to pay rent to, how and on what day, and that foreclosure alone is not grounds for eviction. In buildings of 10 or fewer units it must be posted on your door and sent by certified and regular mail. Pay rent as that notice directs and keep receipts.

   N.J.S.A. 2A:50-70(a), (b), (c)

4. Good cause is still required

   For as long as you rent

   A tenant covered by the Anti-Eviction Act cannot be removed by the landlord's successor except for good cause, such as unpaid rent or damage, decided by a court. One good cause is an owner of a building with 3 or fewer units who will live there, which needs 2 months' notice and cannot be used until a written lease ends; the federal 90 days still applies. The Department of Community Affairs says owner-occupied buildings with 2 or 3 units and 2 or fewer rentals may not be covered.

   N.J.S.A. 2A:18-61.3(b); N.J.S.A. 2A:18-61.1(l)(3); N.J.S.A. 2A:18-61.2(f)

5. Cash to leave, and no pressure

   During the case and for 1 year after the sale

   The lender or new owner may ask you to leave only through a good faith money offer, given with the Notice to Tenants, and you have 5 business days to accept or reject it in writing. It cannot misstate your rights, imply you must accept, cut off utilities, stop maintaining the home or raise rent beyond legal limits. A violation can bring $2,000 per violation plus attorney's fees.

   N.J.S.A. 2A:50-70(d), (f); N.J.S.A. 2A:50-71

6. Your security deposit

   When ownership changes

   The buyer at a foreclosure sale is responsible for your security deposit and its interest, whether or not your old landlord actually turned it over. That includes giving the required notices and returning it when your lease ends.

   N.J.S.A. 46:8-21

7. You may be able to buy the home

   At the sheriff's sale

   If the owner was an individual and does not use the program, a tenant who has lived there at least a year, was current on rent when the foreclosure notice came, and has financing can have a right of first refusal at the upset price with a 3.5 percent deposit. You need a HUD-approved homebuyer course and must live there 84 months. Ask the sheriff's office about the Community Wealth Preservation Program.

   N.J.S.A. 2A:50-64(d), (e)

Common questions in New Jersey