By JAY ROMANO Published: January 27, 2011 on NYTimes.com
Q What, if anything, can a tenant in New York do when the building he is renting in is being foreclosed upon?
A Steven Einig, a Manhattan lawyer who specializes in foreclosures, says that the most important thing a tenant can do is to continue to pay rent, either to the owner or to a “receiver” appointed by the state court. Rent-regulated tenants, Mr. Einig said, cannot be evicted, even after a foreclosure, as long as they continue paying rent and do not otherwise violate the terms of the lease. Under state law, he said, residential tenants in buildings in foreclosure must be served with a notice of the foreclosure action by the lender. Generally, unregulated tenants are entitled to remain in their apartments for the remainder of their lease term, or for 90 days after being served with the notice, whichever is greater. After that, they can be subject to an eviction procedure.