When the bank forecloses a tenant-occupied property, the eviction process is controlled by laws that are in place to protect tenant rights. Typically, the bank will initiate Cash for Keys (CFK) negotiations with the tenants to voluntary vacate the now bank-owned property in a short period of time.

It is, however, important to know that the law allows tenants to stay in the foreclosed home for up to 90 days before being subjected to eviction. Of course, they forego of the CFK offered by the bank.

As foreclosures and evictions continue to take its course, the government has continually adopted legislations in order to ensure tenant rights are upheld.

- In 2008, landlords were required to give a 30-day notice to vacate to tenants for any reason, except failure to pay.

- In the same year, 2008, Senate Bill 1137 was passed which required banks to wait 60 days after foreclosure before asking tenants to vacate.

- In May 2009, a federal law was enacted which requires banks of foreclosed properties to give tenants at least 90 day-notice to vacate. Additionally, a tenant may continue to occupy a foreclosed property through the end of his lease, as long as the lease was entered into before being made aware of the looming foreclosure. However, once an REO is sold to a buyer who intends to occupy the property, the tenant will need to move out, as long as the prescribed time period is followed.

- In September 2010, SB 1149 was signed into law in California, requiring tenants of foreclosed properties to be given a formal notice of their rights and responsibilities. This is to be attached to the eviction notice sent to tenants.

Foreclosures still occur, and will continue to occur as long as there are homeowners who fail to pay their mortgage. For renters, know your rights. The law is often on your side.