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When a property owner fails to pay his mortgage, the bank may take back the property. If you are renting a unit where the owner loses the property, you may not hear about it until the bank gives the owner a Notice of Trustee’s Sale. The Notice will be posted at the property. You will also receive a Notice in the mail. About 20 days following the Notice, the property may be sold at foreclosure. Please give a copy of the Notice to your Section 8 advisor immediately.

 

The new owner may let you stay. If the new owner wants you to sign a new lease, please tell your Section 8 advisor.

 

If the new owner wants to evict you, the owner must give you a 60-day notice. You may ask your Section 8 Advisor for a voucher to move. Please put your request in writing and attach a copy of the 60-day notice.

 

Sometimes a bank will offer you “cash for keys” which refers to relocation assistance in exchange for leaving the unit on a specific date. You may also be entitled to a refund of your security deposit from the new owner. If you have any questions regarding your legal rights, you may call Legal Aid at 1-800-399-4529.

Until the sale of the property, you must continue to pay your rent to the original owner. After the property is sold, do not pay rent to anyone until you can verify the new owner or property manager. Verification documents include a letter of authorization from the bank, or a recorded copy of the trustee’s deed of sale.

 

4. How should I pay my rent?

   - NEVER pay your rent in cash.

   - ALWAYS ask for a receipt. (If you pay your rent by check, your cancelled check can serve as your receipt.

   - KEEP RECEIPTS AND/OR CANCELLED CHECKS FOR ALL OF YOUR RENTAL PAYMENTS.

MORE RESOURCES

To learn more on how to proceed if you find yourself in such a situation, please refer to our Tenant Newsletter by clicking here. 

You can also refer to the information on Foreclosed Properties and Housing Rental Market by clicking here.