Legal Question in Real Estate Law in Maryland

Prior to 2009, if the property went into foreclosure, the lease was completely wiped out and the tenants were forced to immediately vacate the premises with little to no recourse against the defaulting landlord. After March 2009, this changed thanks to legislation passed by President Obama.

Now, if the property goes into foreclosure before the lease expires, you receive the protection of a federal statute called The Protecting Tenants at Foreclosure Act of 2009. This law was passed by President Obama and protects tenants from immediate eviction by persons or entities that become owners of residential property through the foreclosure process. Under the law, the immediate successor in interest at foreclosure (usually a bank or other lending institution) must: (i) provide bona fide tenants with 90 days notice prior to eviction (once the property has been foreclosed) and (ii) allow bona fide tenants with leases to occupy property until the end of the lease term, EXCEPT the lease can be terminated on 90 days notice (after foreclosure) if the house is sold to a purchaser who will occupy the property.

Best of luck.*****The above is for informational purposes only and does not create an attorney-client privilege.******