Question: Do i need to pay rent if the house i'm renting is in foreclosure. and if so to who?
Answer: Legally you do need to continue paying rent to your original landlord until the house has been sold. Practically speaking, if you don't keep paying your landlord rent, it is unlikely (but still possible) that the landlord would try to sue you to recover back rent. When a house is in foreclosure, your landlord still owns it until what is known as a "trustee's sale" occurs. At that time, a new entity - usually the bank that holds the mortgage - will purchase the house, and will then become the new owner of the house you are renting. When the new owner takes possession of the property, they can either (1) kick you out of the property or (2) enter into a new rental agreement with you.
May 13, 2009