New York Renters' Rights in Foreclosure Situations

Facing a foreclosure as a renter in New York can be confusing and stressful. If your landlord's property is being foreclosed, it's important to know your rights and what the law says, so you aren’t caught off guard. This article explains the protections in place for renters, which forms or notices you should watch for, and where to seek help.

What Happens to Renters When a Landlord Faces Foreclosure?

In New York, if your landlord loses their property through foreclosure, federal and state laws may offer you special protections—even if you had no idea foreclosure was happening. Foreclosure is the legal process in which a lender takes back property from an owner who has missed mortgage payments.

• Your lease usually survives foreclosure: If you have a written lease, you generally have the right to stay until it ends.
• Month-to-month renters have 90 days’ notice: If you do not have a lease, you’re still entitled to at least 90 days’ written notice to leave, thanks to the federal Protecting Tenants at Foreclosure Act (PTFA).
• Only certain reasons for early eviction: New owners can only ask you to move out before your lease ends if they plan to personally move in.

Your Notice and Eviction Rights

If the property you’re renting is sold at foreclosure, the new owner must provide an official written notice if they want you to move. This must give you at least 90 days before they can start a court eviction case. If you have an unexpired lease, you may be able to stay until it ends, unless the new owner is moving in personally.

Official Forms and Notices

• Notice to Quit (90-Day Notice): This formal letter lets you know that you must move out after 90 days. It is required by law to start the eviction process for renters after foreclosure. For more about this notice, see the New York Courts Eviction Information page.
• Holdover Petition (RPAPL § 713): If you do not move out by the end of the notice period, the new owner may file a Holdover Petition in Housing Court to start the official eviction. Learn about petitions and court papers at the New York State Ejectment Guide.

Which Laws and Agencies Protect You?

The main laws are the New York State Real Property Law and the Protecting Tenants at Foreclosure Act (PTFA). The primary tribunal handling these matters is the New York City Housing Court (for NYC), or your local County or City Court for other areas in New York.

• NYC Housing Court (for New York City renters)
• Find your local court (for renters outside NYC)
• New York State Tenant Protection Unit (guidance and complaints)

Action Steps if Your Home Is in Foreclosure

If you learn your building is in foreclosure, stay calm. Here are the practical actions you can take as a renter in New York:

• Keep paying your rent to the landlord—or, if notified, to the court or designated receiver (never stop paying without written notice).
• Read any letters, court papers, or 'notices to quit' carefully, and note all deadlines.
• If you receive a Holdover Petition, respond to the court by the date listed. Attend all Housing Court dates.
• Seek legal advice if you are unsure about your rights or notice wording.

Many renters can stay in their homes for the full lease or for 90 days after written notice, even after foreclosure. Don’t feel pressured to move out early without official paperwork.

FAQ: New York Foreclosure and Renters

1. Can a landlord evict me immediately if the property is foreclosed?
   No. In New York, even if a property is foreclosed, you cannot be evicted without receiving at least 90 days written notice unless your lease has ended or you break rental rules.
2. What happens to my security deposit in a foreclosure?
   The new owner is responsible for your security deposit. If you move out, request it from either the original landlord or the new owner—always in writing.
3. Can I stay until my lease expires?
   Usually, yes. If you have a valid lease signed before the foreclosure sale, you can remain until the lease ends, except if the new owner intends to live there themselves.
4. What official documents should I look out for?
   Expect a 90-Day Notice to Quit and possibly a Holdover Petition in court. Carefully read all legal papers and keep copies for your records.
5. Where do I go for help with a foreclosure eviction?
   Contact your local Housing Court or the New York State Tenant Protection Unit for guidance, and consider reaching out to a legal aid group.

Key Takeaways

• Most New York renters get at least 90 days’ notice to move after foreclosure, and many can stay until their lease ends.
• Always read and respond to official notices—Housing Court is the authority for resolving disputes.
• Resources, forms, and help are available from state agencies and courts.

Need Help? Resources for Renters

• NYC Housing Court – Official Information
• New York State Tenant Protection Unit – Tenant Rights & Support
• NYS Courts – Eviction Information
• CourtHelp for NYC Tenants
• NY Tenant Information Guide (PDF)

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1. New York State Real Property Law (RPL)
2. Protecting Tenants at Foreclosure Act
3. New York City Housing Court
4. NYS Tenant Protection Unit
5. NY Court Ejectment Information

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