The federal 90-day rule applies in Ohio
Ohio tenants in a foreclosed house are protected by federal law, not just state law. The Protecting Tenants at Foreclosure Act first passed in 2009, lapsed at the end of 2014, and was restored permanently by S.2155, signed May 24, 2018 and effective June 23, 2018, according to the National Housing Law Project.
Its two core rules:
- Notice: the new owner after foreclosure must give a bona fide tenant at least 90 days’ notice before eviction.
- Leases: a bona fide tenant with a fixed-term lease can stay until the lease ends. The one exception is a buyer who will occupy the house as their home: that buyer can end the lease, but still has to give 90 days’ notice.
The law covers single-family homes and multi-unit buildings, judicial and non-judicial foreclosures, and every state. It does not override state or local rules that protect tenants more.
Who counts as a bona fide tenant
Only a bona fide tenant gets the federal protection. The NHLP summary lists three tests:
| Test | Passes | Fails |
|---|---|---|
| Relationship | Unrelated renter | The borrower, or the borrower’s spouse, child or parent |
| How the lease was made | Arm’s-length deal | A sham lease set up to block the foreclosure |
| Rent | Not substantially below market | A token rent, unless lowered by a government subsidy |
The tenancy also had to be in effect on the date title transferred at the foreclosure sale. Someone who moves in afterward is not covered. A family member living rent-free is usually treated as an occupant, not a protected tenant.
Section 8 voucher tenants
Housing Choice Voucher tenants get an added layer. Section 703 of the act lets them continue under their existing lease and requires the new owner to take on the housing assistance payment contract. It also says a foreclosure transfer is not “good cause” to end the lease. A voucher tenant should contact their housing authority as soon as they learn of the sale.
A worked example of the timing
Two tenants in the same foreclosed duplex can end up with very different move-out dates. Suppose the bank buys the duplex at the sheriff sale and takes title, then serves notices on March 1:
| Tenant | Tenancy on the title date | Earliest date the new owner can require them to leave |
|---|---|---|
| Upstairs | Month-to-month, market rent | 90 days after notice: about May 30 |
| Downstairs | 12-month lease ending November 30 | November 30, the end of the lease, if the buyer is not moving in |
| Downstairs, if the buyer will live there | Same lease | 90 days after notice: about May 30 |
The 90 days and the lease term are minimums. A new owner can offer more time, or a written move-out payment, and many do because a cooperative handover protects the property. Any agreement should be in writing and signed by both sides.
The tenant should keep the notice, the envelope and the date it arrived. If a notice gives less than 90 days, or a buyer who won’t live there tries to end a lease early, that is the point to call legal aid.
How the new owner removes a tenant under Ohio law
After the federal notice runs, the new owner still has to follow Ohio procedure. R.C. 1923.02 lists the people forcible entry and detainer can be brought against, including occupants after a court-ordered or execution sale and tenants holding over after their term. The steps then match any other eviction:
- The 90-day federal notice, or the end of the lease if the tenant has that right.
- A 3-day notice to leave under R.C. 1923.04, with the required warning statement.
- A filing in municipal court, a hearing, and a writ if the court rules for the owner.
Lockouts, utility shutoffs and removing belongings are not allowed at any stage. R.C. 5321.15 makes a residential landlord liable for damages and attorney’s fees for those acts. Our guide to the Ohio eviction process walks through the court stage.
The landlord who is being foreclosed on
Owners in foreclosure who rent the house out have a narrow window to act before the sheriff sale. Selling before the sale lets the owner deal with the tenant directly instead of leaving it to a bank. It also keeps control of the deposit. Under R.C. 5321.16, a deposit must be returned or itemized within 30 days after the tenancy ends, and a tenant left without their deposit after foreclosure often has a claim against the old landlord.
Practical steps for a landlord facing foreclosure:
- Tell the tenant in writing what is happening and where rent should go.
- Keep the deposit records and lease in one place for the buyer or title company.
- Check the court docket for the sale date. Our Ohio foreclosure timeline explains the stages, and what happens after a sheriff sale in Ohio covers confirmation and the new owner.
What tenants should do now
Tenants who see a foreclosure notice on the door or in the mail should keep paying rent and keep proof, read their lease end date, and save any notice the new owner sends. Ask for the new owner’s name and address in writing. Legal aid can review whether you are a bona fide tenant and whether a notice was valid. Community Legal Aid, which serves central Northeast Ohio, lists a HelpLine at 866-584-2350.
Landlords who would rather sell before the sheriff sale, tenant in place, can read selling a house in foreclosure for that choice.
