III) Foreclosure

I am a homeowner and I received court papers for a mortgage foreclosure. What does this mean? Do I have to move?
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If the bank or mortgage company has started a foreclosure suit against you, you will be served court papers by the sheriff or by a process server. You should receive a summons (a notice from the court which tells you that a case has been filed and how long you have to respond to the complaint), a complaint, and possibly an order to show cause. These papers come with a deadline (usually specifically provided in the summons)! So, as soon as you get them, read them. Try to talk with an attorney about them so you can get some advice about what to do. If you delay in responding or do not show up in court, an order of default may be entered against you. This would be like automatically losing the case. The next piece of paper you could receive might be a notice to leave your house after the foreclosure sale is completed.

I am a renter and I received court papers for a "mortgage foreclosure". What does this mean? Do I have to move?
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Most likely it means the owner of the property, who is probably your landlord, isn’t making the mortgage payments. You may have to move, but not right away. The most important thing to know is that the foreclosure does not immediately change your relationship with your landlord. In other words, you still have to pay rent or risk being evicted.

If the owner doesn't stop the foreclosure, you may eventually be forced to move, even if you have a written lease. It will take 3 to 6 months, perhaps a year or even longer, for the foreclosure to go through.

You should file a written response to the foreclosure complaint (which you should mail to the court and to the attorney representing the plaintiff), saying you are a tenant and that you want to be notified of what happens in the foreclosure case. If the foreclosure does go through, you should get a copy of the court order setting the date for the public sale. About 10 days after the public sale, the clerk of court will issue a Certificate of Title saying who the new owner is. The new owner can immediately get a Writ of Possession immediately and have the sheriff throw you out on as little as 24 hours’ notice. If you have a lease and you are current on your rent and other lease obligations, the new owner may agree to accept your lease and allow you to remain in the property.