Hi - my name is XXXXX XXXXX X'm a Real Estate litigation attorney here to assist you.
Unfortunately, commercial tenants have very limited rights when a landlord files bankruptcy unless the lease contains a non-disturbance agreement between the tenant, the landlord and the landlord's lender that says in the event of default by the landlord (borrower), the lease will not be disturbed. Assuming there is no such provision in your lease, once the property is foreclosed, the lender can proceed with evicting you from the property.
However, most lenders are willing to allow the lease to continue because it generates income and also keeps the commercial property open, occupied, active, etc., which makes it easier to sell the property to a new investor/buyer.
I would recommend that you contact the lender before the foreclosure and ask what its intentions are, if you can agree to stay and pay rent, etc. This will give you the peace of mind to move forward as you won't have to guess what is going to happen post-foreclosure.
Yes, if you don't have such an agreement, the lender/new owner can institute an eviction action as soon as it purchases the property at foreclosure. If this occurs, the eviction will take 30-60 days to get to court, and the judge would generally give you 10-30 days after the eviction hearing to vacate.
However, if you want to stay, my experience is that the lender or purchaser would likely want you to stay and continue paying rent.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).