Bank Alert Notice: Residential Foreclosure
April 25, 2017 -
Another impediment related to residential foreclosure
Following a foreclosure, we all have been faced with the prospect of evicting the homeowner who becomes as we all thought, a tenant-at-will. The general rule was to provide a 30-day notice of termination of tenancy and then to begin a summary process hearing to evict the post-foreclosure "tenant" from the property.
A case which was just decided from the Southeastern Housing Court found that based upon the fact that there is no agreement between the homeowner and the lender as to its post-foreclosure tenancy status, that the 90-day notice period provided in the eviction statute applies for the purposes of the Notice to Quit for possession.
As you know, each case is fact specific and the court made clear that under these facts, a 30-day notice to quit was insufficient.
We think that this topic will start to appear more frequently as debtors continue to look for more creative ways to delay the inevitable. Some lenders are simply offering a cash payment following a foreclosure in exchange for keys.