This isn’t new but you may not have heard about it. It’s especially important if you’re interested in purchasing properties in foreclosure down at the public trustee’s auction. It’s also an update on this post where unknowing renters were being evicted from the property even though they had a lease in place with the owner.
New Federal law effective from August until December 31, 2012 says they can stay through their previous lease as long as they continue to honor the terms of the lease. Alternatively, a 90 day notice is given for the renters to vacate.
You can see more of it here.
This is good information. These questions come up a lot. An agent asked me simply what happens to a lease after a simple transfer of ownership so having good information for the public is great.