If your home is headed into foreclosure, you probably have a list of questions and concerns. Whether you live in this home or use it as investment rental property, if you are like most homeowners, it is traumatic to lose such an asset to foreclosure. If you have renters, you are likely concerned about the effect the foreclosure will have on them and what their rights are during and after the foreclosure. According to the New Jersey Foreclosure Fairness Act enacted in 2010, the new owners (whether individuals or a bank) must serve renters with documents informing them of the foreclosure sale no later than ten business days after the sale. By law, if they have a lease, the new owner must uphold the previous agreement, and must also inform the renters of new contact information and where to pay or send monthly rental payments. If they are on a month-to-month lease, renters will still usually be given 90 days to remain if there is to be an eviction upon new ownership.
There are numerous variations on what can happen with renters dealing with foreclosure, including the ‘cash for keys process,’ which involves an offer of money from the new owner for the renter to leave as soon as possible. Many foreclosures today also involve not a private owner but large investment companies where most of the human element is missing in the process entirely. They may not have any concern at all about making sure that renters have a heads up to make plans to move, and often have a third-party servicer handling management of the property. In some cases, a larger investment company and/or their servicing company may take over before the foreclosure has been completed. Most leases should be honored though, or legal action can be taken.
Contact Levitt & Slafkes, P.C. now so our foreclosure defense attorneys can review your case and help you move forward in a way that suits your needs best. We are here to help! Call us at 973-323-2953, or contact us online to schedule a consultation.
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