Tenant rights in foreclosure?

Question from G updated on 8th June 2014:

If a property that I am tenant of be foreclosed by a bank then what rights do I have? Can I be immediately evicted? There is a mine in the area I live (and the property is affected) so it is not an easy one to sell.

Our expert Alan Bruce responded:

When the owner of a property does not meet their obligations to a bank, the bank may take possession of the property. In most cases the bank will sell the property to recover any money it is owed. The bank becomes your landlord until the sale of the premises is completed and has the same rights and responsibilities as your former landlord. The bank is bound by the Residential Tenancies Act 1986 and by the tenancy agreement. The Ministry has prepared an information sheet for parties affected by mortgagee sales. You can read this information here: http://www.dbh.govt.nz/tenancy-mortgagee-sale-info. To discuss your situation further you can call 0800 TENANCY (0800 836 262) between 8.00am-5.30pm Monday to Friday to speak with a member of our Tenancy Advice team. You can also visit our website: www.dbh.govt.nz/tenancy-index.

The Ministry of Business, Innovation and Employment provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.

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