DIGEST OF INTRODUCED BILL
Foreclosure of rental properties. Provides that in a foreclosure proceeding involving property that includes one or more residential rental units, the mortgagee shall, at the time that a judgment or decree of sale is entered in the proceeding, provide written notice of the judgment or decree to each tenant who occupies the property under a rental agreement. Specifies that the notice must include a statement of the tenant's: (1) right to terminate the rental agreement; and (2) obligation to pay any outstanding rent upon termination. Provides that a tenant who occupies a rental unit that is subject to a foreclosure proceeding may, upon learning of a judgment or decree of sale in the proceeding, terminate the rental agreement by providing written notice to the landlord of the tenant's intention to terminate the rental agreement on a date that is: (1) specified by the tenant in the notice; and (2) at least ten days after the date of the tenant's notice. Provides that upon termination of a rental agreement, the tenant is liable for rent that may be due under the rental agreement, in an amount that is prorated to the effective date of the termination. Provides that the tenant is not liable for any other rent or damages due solely because of the early termination of the rental agreement.