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Tenants of Foreclosed Properties
Federal law protects tenants from sudden eviction if the property they are leasing becomes subject to a bank foreclosure.
The objective of the tenant protections is to ensure that tenants receive appropriate notice of foreclosure and are not abruptly displaced.
- If you have a fixed term lease, and the lease has not expired, you have the right to remain in the home until the end of your lease term. The new property owner may not terminate your lease early without proper cause (for example, serious or repeated violation of the lease agreement, or a violation of applicable law).
- There is one exception to this rule: If the new owner wants to occupy the unit as their primary residence, the owner may give you a 90-day notice to vacate, even if your lease expires in more than 90 days.
- The new owner cannot terminate your lease early simply because they want the property vacant before they try to sell it.
- If your lease ends in less than 90 days, the new owner has to give you at least 90 days notice to vacate.
- If you get a notice that your rental home is in foreclosure, we suggest that you seek legal advice before making any decisions regarding your tenancy.
For more assistance, read the attached information from Legal Aid Services of Oregon.