Limited Eviction Protection

• If you live in a city with rent control -- most are in California, New York and New Jersey -- or in the states of New Hampshire or New Jersey, you are protected from a post-foreclosure eviction by a "just cause" eviction requirement. Only tenants who fail to pay rent, violate some other lease term or fall under a statutorily described reason permitting eviction, can be evicted by any landlord, including a foreclosing lender. Outside of these places, though, if a foreclosing lender wants to evict you after title has changed hands, it can.
  
  

Notice

• In places where tenants can be evicted by landlords without just cause -- which is most of the country -- a 90-day notice is required before an eviction that follows a foreclosure. This is a requirement of the Protecting Tenants at Foreclosure Act, signed into law by President Obama in 2009. There are two exceptions. One is for tenants with fixed-term leases that has not expired. Lenders must honor the lease and cannot send the eviction notice until the lease term ends. The second is for new owners who purchased the home from the foreclosing lender, who are planning on living in the home themselves. In this instance, the new owner must provide either 30- or 60-day notice to the tenant, depending on the state law requirements.
  
  

Cash for Keys

• If you are subject to eviction by a foreclosing lender, you may legally fight it in court, but risk an eviction on your credit record. Another tactic that doesn't require as much risk is negotiating with the new lender/owner. Some lenders have a "cash for keys" program which saves the lender from a complete eviction action in exchange for the occupant moving out with a cash payment, often between $1,000 and $3,000. It is possible to negotiate some more time before you have to move as well. While there is no guarantee you will get cash for keys, there is no harm trying.
  
  

Getting Your Deposit Back

• A problem some tenants face after foreclosure is the loss of their security deposits. The foreclosing lender may or may not be responsible for its return, depending on state law. In Massachusetts, for example, the foreclosing lender is responsible for the security deposit if it is not a bank chartered by the state. If it is then the former landlord who is responsible for its return. Your only recourse here is a small claims action against your former landlord.