Dec. 29, 2008 - Tenant's rights and foreclosures

It's the law

New Jersey Public Advocate, Ronald K. Chen, issued a stern warning to real estate licensees and attorneys that residential tenants in New Jersey cannot be evicted solely because the property where they live is in foreclosure or has been foreclosed.  

It was also said that the law demands when a bank or other lender forecloses on a residential property, it takes that property with the tenants still in it. When the property is resold to a new owner, that owner takes the property with its tenants.

Chen and Department of Banking and Insurance Commissioner, Steven M. Goldman, warned real estate licensees and attorneys involved in the process of evicting tenants from properties in foreclosure or foreclosed that they may be subject to disciplinary action affecting their professional licenses if they intentionally mislead tenants that they must move from their residence solely because the property is in foreclosure or is foreclosed. 

You can, however, be evicted for non-payment of rent.  If you, as a residential tenant are caught in a similar situation and are unsure where to send your payment, the Public Advocate's office suggests setting the money aside.  Pay the rent as soon as it is determined who should receive it.

If you have questions you may call the NJ Public Advocate at: 609-826-5070

View Rights of Tenants During Foreclosure Brochure