For sure you need competent legal counsel to assist. Foreclosure laws and rules vary. Typically it would render a lease null and void. However, if after the foreclosure you accept rent - you basically end up ratifying the lease. You need to be prepared - legally - to give notice to the tenants once the foreclosure takes place as to what your requirements are. You could renegotiate the lease in some cases or you may wish to accept some leases and not others. How you get copies of leases can be tricky. Who has been operating the property up to now? Someone on ownership / landlord side should have a copy. You may have to make a request (probably best handled by atty) of the tenant to provide you with a copy.
Security deposit - generally (consult atty) a foreclosure will wipe out the obligation of the party foreclosing for the security deposit held. Again this will vary but should be handled by atty giving notice after the foreclosure. In some caes - you may want to work out a deal with a tenant and continue with the deposit as state in the lease for "good will".
Apr 8, 2011