Archive for Eviction

Paramilitary SWAT Teams Now Enforcing Eviction Orders

As local American police forces have become more and more militarized, with weapons grants from the Department of Defense and militarized Keynesianism popular in Washington, DC, it should come as no surprise that even foreclosures are turning into SWAT team-appropriate events.

OregonDOT

© OregonDOT – flickr

The American Free Press has an article out today on a case in Idaho Sprints, Colorado, involing 22 SWAT officers loaded to the ears with military weaponry. What were they doing? Catching a serial killer? Taking down a mass murderer? Saving children from another of the TSA’s monsters?

No, they were enforcing a court ordered foreclosure seizure of a family residence. As the article states, “On October 30, the Clear Creek County, Colorado Sheriff’s Department dispatched 22 SWAT officers—decked out with military-green helmets and uniforms, fully automatic weapons and numerous other “bells and whistles”—to enforce a court order for a U.S. Bank foreclosure on the home of Sarah Donahue.”

The justification for the overwhelming show of force was, of course, to keep the officers “safe.” However, in the interest of total officer safety, the next logical step is for the local police to call in a drone strike to destroy the house completely, while fleecing the local taxpayers to cover the cost of the house.

After all, the taxpayers can pay the bank for the destroyed house, the officers can remain at a safe distance while never having to come into contact with those they “serve” and “protect,” and the federal government can hand out more defense contracts to drone agencies. And finally, with one more house destroyed, prices can only rise as a result of decreased supply, right? Everyone is a winner with militarized police agencies enforcing evictions.

Now, the homeowners who defaulted on their loans should have to face the consequences of such an action. That could involve having to pay back more, or negotiating with their lender for a loan modification of some sort, or simply leaving the property to foreclosure and dealing with the consequences of poor credit. However, they should not be forcibly evicted by a paramilitary organization within their local police force.

Renters and Foreclosure – New Federal Law Affects You

In this time of economic difficulty, many new laws are being enforced} to help people get out of debt and prevent foreclosure. Such laws are coming into play in the national landscape as well being localized on state levels. What the current federal foreclosure law states is that residents of properties that have been foreclosed have 90 days tovacate the premises without the necessity to make mortgage payments during that time. These rules became a federal law in May 2009 when President Obama signed the legislation named “Protecting Tenants at Foreclosure Act of 2009” into practice. This new law is more important for lenders and homeowners facing foreclosure to comprehend.

This law applies to any mortgage loan that is federally related or is a loan on a residential property. Once a purchase has been made on a foreclosed home, the original borrower has 90 days to vacate. Every state is affected by this new law, so residents from California to New York now have an extended time to adjust their lives and make different living arrangements before being forced from their homes. This helps prevent families from being thrown into the streets without a roof over their heads, which is the reason behind the introduction of the law.

©propertymanagementbaltimore - flickr

©propertymanagementbaltimore – flickr

Different exceptions to the rule exist when contracts of a lease come into play. If there is a lease on the house, a bona fide tenant can remain in possession of the house for the remainder of the term. However, if the lease states that it is “terminable at will” according to state law, the tenant must still vacate within the 90 days. This is also the case if the new owner of the property from an auction will use the premises as their primary place of residence. It is important to understand that these new foreclosure laws and provisions only have an effect on tenant-occupied homes, not mortgagor-occupied properties.

The differences in laws on a state level have been lowered significantly, now that this new statute has come into existence and preempted older state and local statutes. The new foreclosure laws have a timeframe in which they will be effective. Since the country is facing an economic hardship that is expected to dissipate, the law will go out of effect at the end of 2012, allowing 2013 to begin as a new year returning to the old law. If the economy is not where it is expected to be at that point, the law may be revised and extended.

When there are tenants renting a home from a landlord who has lost the house to foreclosure, the situation always becomes more entangled, and it is likely that the occupants will fall through the cracks somewhere. This is much too often the case, as the family or occupants leasing the house or apartment may not even be aware of the foreclosure until a sheriff has posted an eviction notice on the property. Due to this new federal law, however, this type of scenario may become slightly easier for the occupants, if they are given notice of the foreclosure and have a chance to plan for their future.

Bad Things Happen if You Ignore the Foreclosure Lawsuit

Homeowners facing foreclosure often receive the lawsuit paperwork in the mail and take either of two actions which will not help them escape the situation. Some frantically begin calling the lender or servicing company, attempting to work out a solution so that they can keep the home. Others will simply put the paperwork aside, not even opening the envelope and just hope for the best.

©accutanelawsuit - flickr

©accutanelawsuit – flickr

While calling the bank to begin negotiating for a loan modification, repayment plan, or other solution to foreclosure is a good idea, it should not be done at the expense of answering the lawsuit. The bank will have no problem opening discussions with the borrowers, all the while proceeding with the legal action and having the house sold. If the negotiations fail, the homeowners can be swiftly evicted.

This can occur because, if the borrowers do not answer the lawsuit or mount any kind of legal defense, the bank will obtain a default judgment. At that point, the bank can request that the home be auctioned off by the county at a sheriff sale. Although the bank can also cancel any sheriff sale, it will be very difficult for the homeowners to reopen the case and begin defending the home after the judgment has been entered.

Thus, it the homeowners do not provide an answer to the foreclosure lawsuit, the bank will file a motion for default judgment against them. The judge will usually grant this, since the borrowers’ failure to file an answer is treated as if they do not disagree with anything the bank has claimed in the complaint. While it is usually a case of the borrowers not being aware of how the court system really works, the judge will usually feel that the owners have been given their day in court and passed on the chance.

Homeowners are also worried about having to pay something to file an answer to a lawsuit. In almost all cases, they will not have to pay anything to the lender during the lawsuit, even if there is a judgment for foreclosure. The home will be scheduled for a sheriff sale, at which time the house will be sold to pay off the judgment and any other liens. Usually, though, homes do not sell for the total amount owed, as there are few buyers, but this is one of the risks lenders take when making loans.

After the sheriff sale will be the eviction process. If the former owners have already left the house, the eviction will not really affect them. But if they are trying to remain there for as long as possible after foreclosure, the borrowers should make sure to keep on top of the process so they know when to move out. Calling the county sheriff is usually the best idea to find out when a lock-out will be performed on a particular property.

In almost all cases, homeowners should respond to the foreclosure lawsuit or contact an attorney to help them do this. If only to delay the final order of judgment against the home for a few months, the rewards can be much greater than any risks. Showing the bank that a real defense will be mounted to foreclosure can also persuade the lender to begin negotiating for other solutions to help the borrowers save their home.

Lost a Job? Prevent Eviction by Cleaning Out Foreclosed Properties

One of the businesses that have been booming despite (or because of) the current economic downturn is cleaning out foreclosed homes. When banks purchase homes at auction, they usually begin eviction proceedings. After the eviction has been completed, any items remaining in the property will be thrown away. The lender or the county, depending on how evictions work locally, hire private companies to haul away the belongings.

©Cool1723 - flickr

©Cool1723 – flickr

Depending on how many foreclosures are affecting an area, this can be a significant source of income for small business owners in the real estate market. There is probably not a ton of money in cleaning out abandoned foreclosed homes, but the work might be pretty steady with a large inventory of homes that need to be cleaned out, and more coming on the market every week.

People looking to break into this type of market should contact either two places:

The first organization to contact is the county sheriff’s department in the area that the business will be working in. The sheriff is responsible for carrying out eviction orders after foreclosure, changing locks, and cleaning out homes. Except for bringing the guns to intimidate people into leaving, the other services are usually contracted out — sheriffs do not usually work as locksmiths or house cleaners. Others starting a new business may be able to do the cleaning by contracting with the county government.

Second, the cleaning business can try to contact the banks that purchase the foreclosures at the auction and attempt to get a contract with them to clean the homes. When banks purchase homes at auction, they hire local real estate brokers to list and sell the properties. It would not be out of the ordinary for them to hire a cleaning agency to clear out all the remaining property and keep the house in decent condition while it is empty.

The business will have at least a couple of concerns going either way. If they work for the government, the pay may be lower, as it is coming from a government with a decreasing tax base. And who knows how much red tape the business will have to cross to be a contractor with the county — or if there is already a politically-connected company doing this work. With the bank, it just might not be interested in hiring a small company and spending even more money on homes it has already lost to foreclosure.

But there might be some counties and some banks that will be open to these types of services. As with all businesses, some people will see the value, and others will pass on the opportunity. Cleaning out foreclosed homes is a growing business, but like all real estate related businesses, it is all local. There will always be more money to make performing these services in areas with a large population, high foreclosure rate, and with government or banks open to hiring such companies.

Contract for Deed and How Foreclosure Works

©REWealthCoach - flickr

©REWealthCoach – flickr

A number of homeowners exist in a kind of legal limbo between being renters and having a mortgage. They are not renting under a lease agreement, but they have not bought the property and obtained a mortgage. As well, they do not own the home they are living in outright. Instead, they have an agreement with the actual owner of the property under a land installment sales contract.

These contracts, also known as installment land contracts, land sale contracts, long-term land contracts, bonds for deed, or contracts for deed, are simply alternatives to a mortgage or deed of trust. The buyers take possession of the property and make monthly installment payments to the seller. These monthly payments consist of principal and interest, and at the end of the contract, the buyers will own the property outright.

While it sounds quite a bit like a standard mortgage, there are some important differences between a mortgage and a land installment contract. First, the seller is also the financier of the purchase, and the seller retains title to the property for as long as the contract is in place. It is only after the buyers have paid on the contract for the required period of time that they are granted full ownership rights.

The buyers, though, have more responsibility than with a rental agreement, and also more ownership rights. In the typical contract for deed, the buyer is viewed as the equitable owner of the property, is given full possession, and is required to maintain the house. The buyers, then, have rights to do anything to the property they want, as long as it does not interfere with the security interest of the seller.

Land installment contracts also usually allow sellers to avoid the standard foreclosure process if there is a default. Because the buyers do not have title to the home, the sellers may be able to use a process called forfeiture. This allows the seller to forfeit the contract, take back possession of the home, and retain all of the principal and interest payments made to date as rent or damages.

If a land installment sales contract is forfeited, the buyers may then be treated as tenants of the property. And if they are not paying as agreed on the contract, the seller will be able to bring an eviction action against them. However, as in almost all real estate related issues, the exact function and treatment of these types of contracts depend heavily on the state laws and how detailed the statute are in regards to them.

Some states have extremely detailed treatments of land sale contracts, regulating how they are to be terminated, forfeited, or foreclosed in the event of a default. Courts, as well, may require that all such agreements be terminated through the state foreclosure process, including the right of the buyers to defend any abusive actions in court and to have the property sold at a county sheriff sale.

Many states now require some notice to be given to the buyers of the default and impending legal proceedings, just as in the foreclosure of a mortgage. Buyers are also to be given a reasonable time to cure the default and have the contract reinstated. There are also redemption rights in some states which give former owners the ability to pay off the defaulted amount for land contracts that have been foreclosed.

Forfeiture of land installment sales contracts actually seems to be reducing in popularity. It is viewed as quite unfair for buyers to make payments on an agreement for a period of time and, upon default, to lose all rights to the property and not be given a full foreclosure process to defend their home. There is now even broad agreement that a contract for deed creates a mortgage on the property.

Although relatively few homeowners now use a contract for deed, it may become a more popular method of financing homes as credit stays tight for the average borrower. These agreements can be made between private individuals without the involvement of a larger bank or investment firm, and terms can often be more lenient than with a mortgage. Buyers and sellers should be aware of the drawbacks and benefits of such contracts.

How Tenants Can Deal with Landlords Losing a Home to Foreclosure

When homeowners face foreclosure on a property they are renting out, tenants often begin to

©stevedepino.com - flickr

©stevedepino.com – flickr

worry about the status of their home. Will the landlord be able to avoid foreclosure? Should the tenants stop paying rent? Will the new owner at the auction evict them, or will the purchaser honor the lease agreement? Unfortunately, many of these questions exist due to differences in the treatment of tenants under state law.

Many times, the first action a purchaser at a foreclosure auction takes is to begin the process of evicting former owners or tenants, whether this action is legal or not. In many cases, although it is not legal, the new owners will pursue this anyway in their effort to take possession of the property as quickly as possible. If this happens, it is usually up to the tenants to assert their rights under the lease.

Much of the confusion rests on two related issues. The first is that tenants’ rights after a foreclosure are defined under state law, and each state will treat the issue slightly differently. Another issue is that tenants are the group most forgotten about in all of the efforts and discussion to help homeowners stop foreclosure. Protecting the rights of the renter is far down the list of priorities for most politicians attempting to help homeowners save their homes.

Tenants in different situations will have different rights. State law plays a large role, as does the nature of the lease itself. For instance, a lease that was entered into before the mortgage was placed on the property will usually survive a foreclosure. The lease existed before the mortgage was entered into, while the mortgage was in default, and during the foreclosure process. A purchaser at auction will not receive a greater interest in the property than existed before the mortgage.

There are two different views on the much more common issue of a lease entered into after a mortgage is executed. The majority opinion is that a lease will survive foreclosure if the lender is on notice that the tenancy exists. The exception to this rule is if the foreclosing lender makes the tenants are party to the foreclosure lawsuit; in this case, the lease may be exterminated after the foreclosure is completed.

Another view on this issue is that the foreclosure terminates the lease whether or not the tenants are made a party to the foreclosure lawsuit. In cases of nonjudicial foreclosure through a power of sale clause, most courts have held that the foreclosure extinguishes the tenants’ rights in the property under the lease agreement. This gives tenants very few rights to defend their interest in the home.

One issue that homeowners, lenders, and tenants need to be aware of is that of the notice requirement mentioned above. If the lender has notice of the lease agreement, either actual or constructive, and does not include the tenants in the foreclosure proceedings, the lease will most likely survive the foreclosure auction. This makes the notice extremely important for tenants, foreclosing lenders, and purchasers at auction.

A number of different documents or actions can provide notice to the lender of the lease agreement. A recorded lease provides notice, for example. Also, if it should be apparent that tenants are living in the property, the lender may have the responsibility of investigating to determine the tenants’ claims. An apartment building or property with more than one unit may also provide notice just by the nature of the building itself.

Homeowners are usually somewhat lacking in their efforts to help tenants deal with the foreclosure process. This often leaves renters on their own to figure out how to respond, and many end up not paying rent and being evicted quickly after a foreclosure auction. Unfortunately, this is often the worst possible scenario, and may not even be legal. But too few tenants know their rights after the home they are renting is foreclosed.

Understanding The Foreclosure Process And Using It To Your Advantage

©insurancebrokersonline1 - flickr

©insurancebrokersonline1 – flickr

As most of you probably already know, your mortgage company will not accept your payments during the foreclosure process. The reason your mortgage company will not accept your payments is because they need to either be paid in full for all the arrears, or an acceptable repayment plan needs to be approved. If they accept your payments otherwise, you would have a probable excuse to challenge the foreclosure in court, using the defense they they agreed to a modified payment. Your evidence would be the payment they accepted that was less than the amount owed. So, for those of you that have not had a payment rejected yet, be expecting it. Most homeowners in foreclosure live in their home for 3-24 months without making a single loan payment, before getting evicted.

To help you better grasp the foreclosure process, I’ll quickly review the 4 basic steps of foreclosure. These are not 100% correct for every situation, but I’ve tried to describe these to be as accurate as possible for every situation.

Step one is the filing of the foreclosure lawsuit or lis pendens, or other formal and public notification of the missed payments. In most cases this happens after three missed mortgage payments.

Second is a court case for you to defend yourself against the foreclosure in the event it was not a legal foreclosure. There are 100’s of legal foreclosure defenses and virtually unlimited ways to remain in your home, if you comprehend the court process and use it to your advantage. This step may need to be filed in court on your part if you are in a non judicial state.

Step number three in foreclosure is the auction or sheriff’s sale. This is when the property is sold at auction to the highest bidder. Many people believe there are actually people bidding at these sheriff sales and someone else is going to buy their home; this is usually not the case. At the sheriff sale, the highest bidder is usually a representative from the mortgage company or real estate agent. In almost every case we see, the mortgage company gets the home back and it becomes a REO (Real Estate Owned) listing for the mortgage company. After the sale, your mortgage company will own the home and they will try to sell it as quickly as possible.

In some states, there is a redemption period, either before or after the auction. In these states, foreclosure victims are allowed up to 1 year to get their home back, depending on the exact laws. To redeem the home, the homeowner must come up with enough money to purchase the home from the lender for the total amount owed. In some cases, the previous owner may get the home at a reduced price, or even by just paying the total arrears.

The last step in this process is the eviction. This is when you will be forced to leave your home. It’s usually best to vacate before the eviction process, because if you don’t, the local sheriff and an eviction crew will show up and forcefully evict you and all your stuff from the house. Most states require a min. of three day notice before eviction and some require a 7, 10, or 30 day notice.

During the foreclosure process, homeowners should be working with their mortgage company to try and arrange a loan modification. This is when the terms of the loan are permanently changed to make the loan more affordable. Because of mortgage modifications, many foreclosure victims are able to save their home and get a lower payment. If your mortgage company does not agree on a modification, don’t be afraid to hire a professional modification agent to do it for you. Trying to get a mortgage modification by yourself can be very frustrating, time consuming, and can cost you a lot more money in the long run. A negotiator can get you a betterpayment and can get the case resolved much more quickly. Saving your home and getting a lower monthly payment is easily worth the cost.

In cases when you are not able to keep your home, it’s important try and recover from your hardship while you are in the foreclosure process. When you are not making your mortgage payments, you should be saving as much money as possible so you can move on when that time comes. Don’t spend this extra money frivolously!

If you are losing your home, then it’s time to take a serious look at your spending habits and determine which expenses are 100% required}. In nearly every foreclosure case I see, there are 100’s or even 1000’s of dollars spent on uncalled-for items in the monthly budget. When you are facing foreclosure, you don’t need to keep your $200/month TV service! You can also stop buying songs on the Internet and cancel the Internet services on your cell phone! Take a good look at each and every monthly bill and decide if your life will go on without it. If you can live without the expense and it will not jeopardize your job or your family’s health, then you need to stop spending money on it!

Even if you think you can afford these extra luxury expenses, you need to get real. If you could afford them, you wouldn’t be facing foreclosure! Use the extra money to pay off your other bills, starting with the highest interest rate credit cards first. Getting out of debt will help your credit recover more quickly and when you do get a new mortgage payment, it will be more affordable.

When you do rent or buy your next home, it’s important to buy one that is affordable and will not stress your budget. You should not be living from one paycheck to the next! Make sure you have enough disposable income to put extra cash away each month. You should have a min. of 15% extra income at the end of each month that goes directly to your savings/retirement account. If you get back into a situation where you are struggling each month to make a mortgage payment, you’ll never be able to get ahead of the game.

These quick tips can even help you stop foreclosure, if you make a change in time. But for others, you will have to move on and start a new life in a new home. Use this advice and get your credit back on track by lowering your expenses and eliminating all those frivolous and unnecessary expenses.

Officially in foreclosure- Questions and Answers

©Scoobymoo - flickr

©Scoobymoo – flickr

If you have officially received a foreclosure notice from you bank, you may several questions that need to be answered quickly.  This article is to help people who are past pre-foreclosure and now in foreclosure.  Here you will find answer to some of the most asked questions when in foreclosure.

I have received a foreclosure notice — how long until I lose my house?
If you don’t seek help and can’t come to an agreement with your lender to stop foreclosure, then the foreclosure may not be completed until six or more months after your first missed payment.  It all comes down to what state you live in, as some will process the foreclosure quickly while others take more time.  For instance, in Texas the process is completed in about 45 days.  As soon as you miss a first payment, start looking up foreclosure laws in your state and see how much time you may have; also talk with your lender.

I’m in Foreclosure; do I have to move out of my house right away?
No, you don’t have to move out the day you get a foreclosure notice.  This means you either have time to find either foreclosure solutions or other living arrangements.  You actually don’t have to move out, until your house goes to auction and it is sold to the highest bidder.  Then you must make arrangements to move out with the new owner, or the owner may just follow the legal procedure in your state for evicting you.

My house is has gone to auction and was sold. What is the typical foreclosure eviction process?
This will all vary on what state you live in, so you must check in with your state foreclosure laws.  Some states will send you a legal notice to leave in 72 hours, so you must be ready to go.  If you refuse to leave after the required time period in your state, then the new owner will go to court and present their case to the judge asking for you to be evicted.  The judge will then decide if you are to be evicted and on what date you will have to move out.  If you are not satisfied with what the judge rules, you may have 10 days to appeal.

If you are being evicted and you do not move out on the day the judge ruled, the court can rule to send a sheriff to your house and remove you from the premises.  A sheriff will give you about 48 hours to move out and anything that you don’t remove will go into storage, if not just thrown away. For these items, you will have to pay some fees to get your items out.

I am being evicted. How long do I have left in my home?
The exact time period from the day you are given notice of eviction until a sheriff comes and legally removes you from the premise can vary.  It can be anywhere from 6 weeks to 6 months; the average is 10 weeks though.

Hopefully this answered some of your foreclosure questions, if you have more feel free to leave a comment and I will answer them.

Step by Step – Sheriff’s Sale Process

Most states in the US have their own legal processes when it comes to how a sheriffs sale can work. If you are facing foreclosure or sheriffs sale, it is a good idea to contact your lender or local attorney to be clear on how the process works in the state of your property. This article will provide some basic material to understand the process, but any specific questions should be directed to a local authority to determine intricacies of sale process.

©Michael Surtees - flickr

©Michael Surtees – flickr

Typically it takes 3-6 missed payments before and mortgage company can initiate foreclosure proceedings. Foreclosure notification usually comes with your borrower statement each monthly, with your mortgage bill. Often times banks will leave a notice on the front door of the property to provide notification. These methods will vary from state to state and from lender to lender. If the missed payments are not brought up to date, or the loan is not paid in full, then the lender will initiate foreclosure proceedings. If you are a homeowner that cannot seem to get caught up, and your lender is not offering any kind of loan modification that makes sense to you, then you may face losing your home and really hurting your credit score for the near future. Given the amount of easy credit available up until recently, there are many homeowners that frankly are not qualified or capable of having a mortgage, and thus might have been better off renting.

Many people, once faced with the reality that they cannot afford to keep their home, will put their property up for sale. But because of all the people out there who are in similar situations, there is a surplus of supply and homes for sale in most regions across the country. This make it that much harder to sell your property with sellers competing to sell property – prices must continue to drop with a surplus of supply and an ever-shrinking market of qualified buyers.

If the property is not able to sell on the open market, often times the home goes through the foreclosure process and is eventually sold at sheriffs sale or auction. Most states require that the property be listed in local newspapers as a foreclosure, which can be quite embarrassing especially in a small town where everyone knows everyone else. Banks do not want to own property, and would prefer to see monthly payments paid to them with interest on the borrowed loan. However, when a bank has taken back a foreclosure property, their last option available is to sell it at sheriffs sale or auction to the highest bidder. If this is the case with your property, then you most likely have already had this affect your credit.

It is becoming harder and harder to get a straight answer from a mortgage company these days. Often times when you call in to request information, you get transferred to different departments and are never dealing with an actual decision maker. This can be very frustrating to deal with, especially when dealing with late payments, household bills and needs of family and children on top of everything else. If you are facing sheriffs sale of your home, chances are good that the loan has been transferred to a local attorneys office. Or you may have to contact the lenders “loss-mitigation department” to find out the status of the loan.

You should be able to find out exactly how much time you can expect to stay in the home before the sheriff comes knocking. Ideally it is best to try and work out a loan modification or sell the property if you cannot afford it, before this happens, but sometimes it is hard to get caught up. Contact your lender today to find out what you can do to stay in your home!

What Happens When Your Rental Property Goes Into Foreclosure

Stuart Miles - freedigitalphotos

Stuart Miles – freedigitalphotos

Going into foreclosure for the owner of any kind of property is a stressful experience, but today were going focus on another person it affects; the tenant in a foreclosed property. In some ways it can be a more stressful time, for someone renting a property that goes into foreclosure. One reason is that it comes as a complete surprise usually, one day you just get a note on your door that the property is going to foreclosure. At least if you are an owner in foreclosure, you know when it is coming because you haven’t been paying your mortgage payments. All the tenant knows is that they have been paying their rent on time and now may have to find a new place to live.

If you find yourself to be a tenant of a foreclosure property, it is best to know what going to happen and what options you have.  First you must know your rights; laws in each state can vary.  Do some research to figure out what laws are intact for rental tenants.

Waiting Game
Next depending on you lease-agreement you may have to play the waiting game.  Meaning if you are in a long-term lease and you found out the property is going to foreclosure and being sold, you may have to wait until after it is sold, to find out what is going to happen and what the new owners decide to do.  If you are not in a lease, then you can find a new place to live immediately so you won’t have to worry about it, or still continue to wait it out and see what the new owner plans on doing.

After The Rental Property Has Gone To Auction
Two things can happen when a property is in foreclosure — someone else can bid on it and buy it or no one bids on it and the it goes back to being bank owned.  Either way you going be affected.  Here are some options of what can happen:

– The person or bank decides to evict everyone (maybe there going to try and sell the places as condos/ or just have a different plan for the property all together)
– The new owner/bank can raise you rents or make you sign a new lease if you want to stay there.
– The new owner/bank keeps everything as is and honoring your current lease.

This is why it can be stressful for a tenant because you just don’t know which way it can go and you usually you just have to wait it out.

Tenants Rights
Depending on if you have a long-term lease and on what state you are in you have rights as a tenant.  You can take the landlord to court and sue for moving costs and other damages because they could not hold up the guarantee that they signed with you.  A foreclosure puts your landlord in breach of contract. Another option during the process is that you might be offered “cash for keys” in which the tenant is offered a sum of money to vacate the property before the foreclosure is completed and this is a legitimate practice.  If you do not have a written lease with the landlord or management and are on a month to month agreement, you don’t have these options available.