As the number of foreclosures continues to rise throughout Minnesota, more and more renters are finding themselves in the difficult situation of renting a home or apartment that has fallen into foreclosure.
How Foreclosure Affects Renters:
help renters facing eviction and foreclosed notices from landlords.
It may be surprising, but an estimated 40 percent of U.S households facing eviction due to foreclosure are renters, not homeowners. Many renters have been evicted from their homes with little or no warning - sometimes with no idea that a foreclosure was even pending. This eviction comes from no fault on the part of the renter, but because their landlords were unable to pay their mortgages.
Renter's Eviction Notice Often Comes With Little Warning
As a renter, you may have no idea of an impending foreclosure on a property you are occupying. Unless otherwise stipulated in your rental contract, you may have less than 30 days to vacate your home and relocate. And the hard-to-swallow news continues: renters are finding it difficult to obtain new housing on the same budget as rental prices have gone up. With the increased number of short sales and foreclosures, many other's are forced by eviction to search for the same rental units. In tern, the growing demand for rental homes has jumped costs by 10% or more.
Lease Terms If Landlord Is Foreclosed
If you are a Section 8 tenant, the new landlord cannot change your lease terms until the lease expires. Therefore, you will continue to get your rental supplement and pay the same rent that you paid under the old landlord. The tenant must be given notice of the sale pursuant to Minn. Stat. § 580.042. It states, "The mortgage foreclosure does not change the terms of your lease. You and your landlord must continue to follow the terms of your lease, including the rights and responsibilities of you and your landlord. You must keep paying rent unless you have a legal reason to withhold it. Your landlord must keep the property repaired. Utilities must be paid under the terms of your lease or under state law."
Download and read the report on how HUD is helping renters and families save their homes. 
Another document with valuable information on how foreclosure affects renters and tenant rights was prepared by the Florida Senate.
The University of Minnesota has a report to help renters in foreclosure in the Immigrant Community of Minneapolis.
Foreclosure Protection To Help Renters Facing Eviction
Renters gained some protection against foreclosure under the Helping Families Save Their Homes Act, which was signed and took effect in May 2009. The new law requires the new owners of a property to allow tenants to remain in the home, as long as the tenants pay their rent on time. Renters will be able to stay until the end of their lease, or will get at least 90 days notice if they do not have a lease or if the new owner intends to reside in the home. The tenants to whom the notice must be provided must be bona-fide tenants as this term is defined in Section 702(b). Section 702(b) defines bona fide lease or tenancy, and under this definition, bona fide tenants do not include the mortgagor or the child, spouse or parent of the mortgagor.
Renters Should Have A Minimum Of 90 Days Notice:
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The advance notice applies to tenants in any foreclosed dwelling or residential real property, regardless of the type of loan or other security interest on the property.
An advance notice of 90 days is the minimum period of notification. A longer period may be provided, for example, if greater protections are provided by state or local law.
Responsibility for providing the advance notice to tenants falls on the immediate successor in interest of the property, which will generally be the
purchaser.
The notice must be given to anyone who, as of the date of the notice of
foreclosure, is a bona fide tenant, whether or not there is a lease.In some communities, nearly half of those being affected by foreclosures are renters. If you are uncertain of how foreclosure affects renters in your building or block, your local sheriff's office should have a list of all homes in foreclosure. The Minnesota Home Ownership Center cannot directly assist renters in this situation, but we would like to offer you some links to additional information that may be useful:
You do NOT have to move right away
Your landlord must honor terms of your lease
The landlord must continue to maintain the property