Do tenants have to move out immediately when a landlord is foreclosed on in Florida?

No. Under the Protecting Tenants at Foreclosure Act (PTFA), tenants with a bona fide lease must receive at least 90 days written notice before being required to vacate after the foreclosure sale. If you have a lease that extends beyond the 90-day period, the new owner generally must honor the remaining lease term.

Who should I pay rent to during a foreclosure on my rental property?

Continue paying rent to your current landlord until you receive official written notice from the new owner (the foreclosure buyer). Do not stop paying rent because the property is in foreclosure — this could be used as grounds for eviction. Once you receive written notice of the ownership change with payment instructions, redirect rent to the new owner.

What happens to my security deposit when my landlord is foreclosed on?

Under Florida Statute 83.49, the original landlord is required to transfer security deposits to the new owner or return them to the tenant. In practice, many foreclosed landlords do not transfer deposits. You may need to pursue the original landlord in small claims court for the deposit. Document that you paid a deposit with copies of your lease and payment records.

Does a foreclosure affect my Section 8 voucher in Florida?

The PTFA provides specific protections for Section 8 tenants. The new owner after foreclosure must honor your Section 8 lease for the remaining lease term. Your voucher itself is not affected by the foreclosure — you retain your housing choice voucher and can use it at the current property (if the new owner participates) or at a new property.

Can the new owner raise my rent after buying the property at foreclosure?

If you have an active lease, the new owner must honor the rent amount in your lease for the remaining term. Once the lease expires, the new owner can set new lease terms including higher rent. If you are on a month-to-month tenancy, the new owner can change terms with proper notice (15 days in Florida for month-to-month).

What is a bona fide lease under the Protecting Tenants at Foreclosure Act?

A bona fide lease means: the tenant is not the borrower or a close relative of the borrower, the lease was the result of an arms-length transaction at fair market rent, and the lease was signed before the notice of foreclosure. If your lease meets these criteria, you receive full PTFA protections including the 90-day notice requirement and the right to remain through your lease term.

What Happens to Tenants When a Landlord Is Foreclosed On in Florida?

If your landlord is being foreclosed on in Florida, you have significant legal protections — more than most tenants realize. The federal Protecting Tenants at Foreclosure Act (PTFA) guarantees you at least 90 days' notice before you must vacate, and in many cases, the new owner must honor your existing lease through its full term.

Finding out that the property you rent is in foreclosure is stressful and confusing. You may not know who to pay rent to, whether your security deposit is safe, or how much time you have to find a new place. This guide explains your rights under both federal and Florida state law so you can protect yourself.

What Is the Protecting Tenants at Foreclosure Act?

The Protecting Tenants at Foreclosure Act (PTFA) is a federal law that was made permanent in 2018. It applies to all residential tenants nationwide, including Florida, and provides two core protections:

90-day notice requirement.After a foreclosure sale, the new owner must give tenants at least 90 days' written notice before requiring them to vacate. This applies even if you are on a month-to-month lease or have no written lease at all.
Bona fide lease honored. If you have a bona fide lease (more on what that means below), the new owner must honor the remaining term of your lease. They cannot force you out before the lease expires simply because they bought the property at a foreclosure auction.

The exception: if the new owner intends to occupy the property as their primary residence, they can terminate your lease with 90 days' notice regardless of the remaining lease term. This exception is relatively rare in practice, especially with investor buyers at foreclosure auctions.

What Qualifies as a Bona Fide Lease?

Not every lease qualifies for full PTFA protection. To be considered "bona fide," your lease must meet three criteria:

Arms-length transaction. You and the landlord negotiated the lease independently — you are not a family member of the borrower and the lease was not created to manipulate the foreclosure process.
Fair market rent. The rent you pay is consistent with fair market rates for comparable properties in the area. A lease at $500/month for a property worth $2,500/month would not qualify.
Pre-foreclosure notice. The lease was executed before the lis pendens (notice of foreclosure lawsuit) was filed. Leases signed after the foreclosure action began may not receive full protection.

If your lease meets all three criteria, the new owner after foreclosure must honor your lease through its remaining term — or give you 90 days' notice, whichever is longer.

Who Should You Pay Rent to During the Foreclosure?

This is one of the most common questions tenants have, and the answer depends on the stage of the foreclosure process.

Before the foreclosure sale: Continue paying rent to your landlord as normal. The foreclosure process in Florida takes months or even years, and your landlord remains the legal owner until the foreclosure sale is completed and the certificate of title is issued to the buyer. Do not withhold rent — doing so gives the new owner (or even your current landlord) grounds to evict you.

After the foreclosure sale: Once the property is sold at auction and the certificate of title is issued, ownership transfers to the new buyer. You should receive written notice from the new owner with instructions on where to send rent. Do not pay anyone without proper written documentation of ownership.

If you are unsure:Check the county clerk's website for your property to verify current ownership. You can also contact a housing counselor for guidance on who the legal owner is at any given point.

What Happens to Your Security Deposit?

Security deposits are a major source of confusion and disputes in landlord foreclosures. Under Florida Statute 83.49, when a rental property changes ownership, the previous landlord must either:

Transfer the security deposit to the new owner, or
Return the deposit to the tenant

In a foreclosure situation, neither of these often happens. The foreclosed landlord may not have the funds to return deposits, and the transfer to the new owner at a foreclosure sale does not follow the typical property sale process where deposits are handled at closing.

To protect yourself:

Keep copies of your original lease, deposit receipt, and any communication about the deposit
Send a written request for your deposit to the former landlord via certified mail
Contact the new owner in writing to ask whether the deposit was transferred
If the deposit is not returned or transferred, you can pursue recovery in Florida small claims court (up to $8,000)

Barrett Henry, a REALTOR with 23+ years of real estate experience and Broker Associate at REMAX Collective, has seen countless tenants lose security deposits in foreclosure situations. Documenting everything from the start of your tenancy is the best protection.

What Are Section 8 Tenant Protections During Foreclosure?

Section 8 (Housing Choice Voucher) tenants receive additional protections under the PTFA. The new owner after foreclosure must honor your Section 8 lease for the remaining lease term, regardless of whether they want to participate in the Section 8 program.

Key protections for Section 8 tenants:

Your voucher is not affected by the foreclosure — it stays with you, not the property
The new owner must honor your lease term under the PTFA
If the new owner does not wish to continue participating in Section 8 after your lease expires, you can use your voucher to find a new qualifying property
Contact your local Public Housing Authority (PHA) immediately when you learn about the foreclosure — they can intervene on your behalf and help coordinate the transition

Can You Stay After the Foreclosure Sale?

Whether you can stay depends on your lease status and the new owner's intentions:

Active bona fide lease:Yes, the new owner must honor your lease term. They cannot force you out before the lease expires (unless they intend to occupy the property as their primary residence, in which case they must give 90 days' notice).
Month-to-month tenancy:The new owner must give you at least 90 days' notice to vacate. After the 90 days, they can proceed with eviction if you have not moved out.
No lease: You still receive the 90-day notice protection under the PTFA. The new owner cannot show up and demand you leave immediately.

In some cases, the new owner (often an investor) may want to keep you as a tenant. This is common when the property is an investment purchase. The new owner may offer you a new lease — review the terms carefully before signing.

What Should You Do If You Receive a Notice to Vacate?

If the new owner serves you with a notice to vacate after the foreclosure sale, take these steps:

Verify the notice period. The PTFA requires at least 90 days. If the notice gives you less time, it may be invalid. Do not assume you must comply with an improperly short notice.
Check your lease status. If you have a bona fide lease that extends beyond the 90-day period, you have the right to remain through the lease term.
Respond in writing. Send a written response to the new owner citing the PTFA and your lease, if applicable. Keep a copy for your records.
Contact legal aid. Florida has free legal aid organizations that help tenants facing eviction after foreclosure. Contact your local Legal Aid Society or call the Florida Bar Lawyer Referral Service at 800-342-8011.
Start looking for alternatives. Even if you have the legal right to stay, it is wise to explore other housing options. The transition period after a foreclosure sale can be unpredictable.

What Rights Do Tenants Have During the Foreclosure Process?

During the foreclosure process (before the sale), tenants have the following rights under Florida law:

Right to occupy.The landlord's foreclosure does not terminate your lease. You have the right to remain in the property and use it as agreed in your lease.
Right to habitable conditions. The landlord remains responsible for maintaining the property in habitable condition under Florida Statute 83.51, even during foreclosure. If the landlord stops making repairs, you may have remedies under Florida landlord-tenant law.
Right to privacy.The landlord, the lender, and the lender's agents cannot enter the property without proper notice (at least 12 hours under Florida law) except in emergencies.
Right to information.You are entitled to know about the foreclosure status. Check the county clerk's online records for case updates.

How to Protect Yourself as a Tenant in a Foreclosure

Take these proactive steps as soon as you learn your landlord is facing foreclosure:

Document everything. Make copies of your lease, all rent payments (checks, bank transfers, receipts), security deposit documentation, and any communication with your landlord about the foreclosure.
Monitor the court case.Look up the foreclosure case on your county clerk's website to track the timeline and know when the sale is scheduled.
Save money. Start building a moving fund in case you need to relocate. Having first/last/deposit ready gives you options.
Know your lease terms.Understand when your lease expires and whether it qualifies as "bona fide" under the PTFA.
Seek help early. Contact a housing counselor or legal aid organization before a crisis develops.

Whether you are a tenant in a foreclosed property or a landlord facing foreclosure with tenants, contact us for a free consultation. We help both sides navigate this complex situation with clear guidance and practical solutions.