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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102349
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I am a licensed Realtor in Maryland. I have a listing in prince

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I am a licensed Realtor in Maryland. I have a listing in prince georges county where the house is being sold as a short sale. The seller has the property currently occupied by a tenant that was on a 6 month lease that expired in June 2013. The seller (sr. citizen) has not received any rent since the lease expired in June 2013 which I didn't know until now. We have our short sale approval and are scheduled for settlement on 10/17/13. Now the tenant is indicating that they don't have anywhere to move to, and will have to stay until they're put out of the property because they know the house was facing foreclosure. My questions are, can the seller file for an eviction without a 30 day notice since there is no longer a lease in place, and the tenant has not paid rent in several months? Also, what happens if the seller has to give a 30 day notice, and the property will have sold during that time? Will the new owner then have to start the 30 day notice process all over again because they "inherited" this non-paying tenant?
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

I am sorry for your situation.

Now the tenant is indicating that they don't have anywhere to move to, and will have to stay until they're put out of the property because they know the house was facing foreclosure.

This is not uncommon. Ordinarily, the tenant would have some protection under the Protecting Tenants at Foreclosure Act of 2009, which often allows them to live out a written lease OR gives them a 90 day window after a foreclosure, with the caveat that if the new owner wants to move in immediately, then they do not have this protection.

However, this Protecting Tenants at Foreclosure Act of 2009 does not apply to short sales. A short sale is like a regular sale and would not be covered under the Protecting Tenants at Foreclosure Act of 2009.

As such, the new owner "takes over" the role of the landlord. Because the tenant has NOT PAID RENT for months, the new owner can easily evict the tenant. Or, the old owner can, if they are willing to do so. Of course, a home without a renter to be evicted is much easier to sell.

My questions are, can the seller file for an eviction without a 30 day notice since there is no longer a lease in place, and the tenant has not paid rent in several months?

Yes. Due to non-payment, the tenant only needs a 5 day notice before eviction is filed.

and the property will have sold during that time?

Technically yes, although then it would be the NEW tenant who continues the eviction process. It may be easier to evict without having to change the owners in the midst of an eviction.

Will the new owner then have to start the 30 day notice process all over again because they "inherited" this non-paying tenant?

It would be 5 days notice, and no, they would not have to start the matter again but as stated above, since it is only 5 days notice before filing the eviction, it is best that ONE owner files and has the eviction heard.

I hope this helps and clarifies. Good luck.

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