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As a tenant, you have the same rights if your landlord is in foreclosure as you do if your landlord is not in foreclosure. Just because the rental premises is the subject of a foreclosure proceeding does not mean you lose any rights as a tenant under New Jersey law.

Tenants in New Jersey have very strong rights under New Jersey law. Only a tenant in premises which is owner occupied and does not contain more than two rental units (i.e. a two or three family owner occupied building) can be evicted for other than “good cause” under New Jersey law. All other tenants can only be evicted for “good cause”. The “good cause” requirement also applies if you rent a condominium or a single-family home.

Your rights a tenant do not end when the premises in which you are living is in foreclosure. A new owner, a bank or someone who buys the premises at a foreclosure sale, steps into the shoes of your landlord, is bound by your tenancy and has the same obligations as the old owner; unless the new owner intends to occupy the premises (for example if you rent a single-family home or a condominium). However, even then you are entitled to notice before you can be evicted. Do not let realtors, attorneys for your landlord or a lender or a management company tell you that a foreclosure action has changed your rights. If that happens and you are threatened with eviction, see a lawyer with experience in landlord-tenant law for help.

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