Can I Get a Rental Supplement if My House Is Being Repossessed?

If a homeowner doesn't pay his mortgage, the bank can repossess his home and resell it. This process is called foreclosure. If the defaulting homeowner rented the home out to tenants, those tenants have the right to remain until the end of their leases. If a tenant is on Section 8, which means the state supplements his rent, the new landlord must honor this arrangement until the end of the lease term.

Tenants' Rights

If your landlord doesn't pay his mortgage and the bank forecloses on the home, the new owner cannot evict you until the end of your lease, unless he intends to live in the home himself. If you are a Section 8 tenant, the new landlord cannot change your lease terms until the lease expires. Therefore, you will continue to get your rental supplement. Pay the same rent that you paid under the old landlord.

90-Day Notice

If the new owner intends to live in the home, he must give you a 90-day notice to vacate the premises. Section 8 tenants are not exempt from this requirement. You still qualify for Section 8 if you continue to pay rent and follow lease terms. If you receive a 90-day notice from a new landlord, immediately contact your Section 8 housing representative. Let her know that the new owner is requiring you to move. Your housing representative will help you find new housing.

Public Housing Authority

The new owner must contact the public housing authority to arrange to get the payments it was sending to the old landlord on your behalf. The new landlord must accept your Section 8 vouchers for the remainder of your lease term; he cannot insist Section 8 tenants pay full price, even if he does not plan to accept Section 8 in the future. If the landlord does not get his payment from the public housing authority, contact your Section 8 representative.

Security Deposits

As of 2011, the new landlord is not responsible for refunding security deposits if he evicts tenants at the end of their lease terms, including Section 8 tenants. You must contact the old landlord to get any security deposit that you paid back. If you cannot locate the old landlord, contact legal aid in your state to get an attorney to help you. You may have to sue the old landlord to get your deposit.

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