Eviction and Foreclosure Tenant Rights
The federal government has recently passed legislation protecting tenants living in foreclosed homes. The new law states that:
- Banks must give tenants 90 days written notice after the home is foreclosed before they can evict.
- If the tenant has a lease, the bank must honor it. They can only try to evict the tenant after the lease ends, or sooner if the bank has a buyer who plans on moving into the apartment.
- Section 8 tenants cannot be evicted because of a foreclosure unless the new owner plans on moving into the apartment.
Pre-Foreclosure Sale Notice to Tenants (Providence Code of Ordinances § 13-219)
At the same time a notice of sale is provided to the mortgagor, lenders/mortgagees are required to serve, by mail and posting, a notice to all bona fide tenants in the property being foreclosed upon. The notice, "(i) stating that the real estate is to be sold in foreclosure, which may affect the tenant's right to continue to live in the property; (ii) stating the date, time and place of sale; (iii) providing the address and telephone number of Rhode Island Legal Services; and (iv) providing the name, address and telephone number of HUD-approved counseling agencies in Rhode Island," must be in both English and Spanish. A successor in interest may not evict bona fide tenants until such notice is given.
Eviction Protections (Providence Code of Ordinances § 13-219)
In Providence, bona fide tenants, meaning tenants who entered into a rental agreement with the former landlord or mortgagor at least 30 days before the foreclosure sale, may remain in their homes until the end of the lease term. For bona fide tenants without leases, the tenancy is converted into a month-to-month tenancy.
Post-foreclosure Notice Requirement (Providence Code of Ordinances § 13-219)
A successor in interest after foreclosure must post and mail each bona fide tenant a notice, in English and Spanish, informing the tenant that the the property was sold at a foreclosure sale. The notice must also state "the name and address of the successor in interest, and/or managing agent so that the tenant may know to whom the ongoing rental payments should be made." A successor in interest may not evict bona fide tenants until such notice is given.
Utility Services (Providence Code of Ordinances § 13-219)
If essential utility services, including heat, running water, hot water, electric, sewer or gas, were provided by the foreclosed mortgagor, the successor in interest after foreclosure is required to continue providing these utility services to bona fide tenants.
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