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Can a Tenant Break their Lease if the Rental Property goes into Foreclosure

ByRoberto Vazquez

This question used to come up quite often in the early days of the foreclosure boom; however, the courts put this question to bed a long time ago. If the only issue is the pending foreclosure, the tenant does not have the right to unilaterally terminate the lease agreement. Additionally, the tenant is required to continue paying rent. In fact, if the tenant stops paying rent, they will no longer be considered “bona fide” tenants under the Federal Protecting Tenant at Foreclosure Act. This Act generally provides bona fide tenants with an additional 90 days to stay in the rental property after the foreclosure auction.

Whether you’re a landlord or a tenant, if you have any questions regarding your rights under a lease agreement, we can help! We can consider your situation and help you determine your rights. Contact us today at (407) 904-9166 for a consultation to discuss your specific situation.

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