New federal as well as state laws protect tenants when the landlord’s property is foreclosed upon.
New federal law.
Under the Protecting Tenants at Foreclosure Act of 2009 the purchaser at foreclosure takes the property subject to any unexpired lease. The law also requires the foreclosure auction purchaser to give notice to vacate to any month-to-month tenant. The notice must be served at least ninety days prior to its effective date. The law expires at the end of 2012.
New Washington law.
Under a new Washington law the purchaser is required to give a statutory notice form to any occupants. The purchaser is required to give at least 60 days notice to terminate the possession of any tenant. The purchaser may then bring an unlawful detainer action. The new state law does not expire.
