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A RENTER was shocked to find out that her home was being foreclosed on until she received letters from a lawyer.
Katherine Garcia expressed her confusion and frustration after being informed only weeks before her lease expired that her landlord would not allow a renewal. She insisted, “I haven’t done anything wrong.”
After opening the letters, Garcia discovered that the lawyer’s letters weren’t for her but for her landlord, local ABC affiliate WSOC reported.
“I don’t know anything, so I’m in the middle of something that’s not even my problem,” she said.
The foreclosure sale on the building in Charlotte, North Carolina, was set to happen on March 27, with her lease ending just a few weeks later.
“My family is questioning, ‘What’s our next step? Will we stay, or do we have to move?’ And I’m just as uncertain, responding with, ‘I have no idea what to do,’” she shared with the media.
“I feel like it’s stressful because, right now, I don’t know if I have to rush it to buy a new house or if I have to look for another place to rent.”
The renter said she was planning to renew her lease with the original landlord, but she doesn’t want to risk anything with new owners.
Now, she’s left searching for a new place.
KNOW YOUR RIGHTS
Luckily, under federal law, she can’t be kicked out of her home before the lease ends just because the house is going into foreclosure.
Tenants are protected under the Protecting Tenants at Foreclosure Act, which protects renters from losing their homes.
According to the act, the bank must notify all tenants of the foreclosure when a property goes into foreclosure.
Until the new ownership becomes official, tenants remain bound by the conditions of their existing lease, which means they are still obligated to pay their rent.
Additionally, during the foreclosure process, landlords are still required to hold up their end of the lease by maintaining the property and fixing any issues renters have.
After the foreclosure officially occurs, the foreclosing party is legally obligated to inform all affected tenants of the outcome.
During the foreclosure sale, the responsibility is transferred to the bank to maintain the property.
When new owners take control of the property, they are legally responsible for providing all tenants with their contact information and should advise them of their rights.
If the owner plans to move into the property and no longer rent it out, current renters must have a 90-day notice.
Tenant’s rights
According to InCharge Debt Solutions, tenants have several rights in the United States:
As a tenant, you have certain rights, and while they vary from state to state, there is a list of standard requirements virtually every landlord in the U.S. must provide:
- Heat (but not air conditioning)
- Running hot and cold water
- Locks and keys
- Smoke detector
- Clean and safe common areas
Landlords can keep security deposits for several reasons. These include:
- Unpaid Rent
- Damage to the Property
- Cleaning Costs
- Unpaid Utilities or Bills
- Breach of Lease Terms
- Abandoned Property
- Repairs Due to Tenant Negligence
If landlords don’t make any necessary repairs, tenants should:
- Review Your Lease or Rental Agreement
- Document the Problem
- Notify Your Landlord in Writing
- Contact Local Housing Authorities
- Repair and Deduct
- Mediation or Legal Action
- Protect Your Rent
The new buyer can quickly evict tenants who don’t have a lease, have an “at-will” lease, or are underpaying for rent.
Tenants who are related to the landlord are also more easily evicted.
To protect yourself from being impacted by your landlord’s foreclosure, tenants should make sure to have their lease in writing and record their lease with the Register of Deeds.
Renters should also reach out to the new buyer to see what their plans are.
