HB 2632 Summary

• Allows tenants lawfully occupying a property when foreclosure is initiated to continue renting for the remainder of their lease or 90 days after the new owner takes possession, whichever is longer.

• During the continuation period following foreclosure, the new owner assumes landlord obligations under the existing lease terms, including the rental amount.

• Requires property owners to provide written notice of possible foreclosure to any tenant entering into a rental agreement after foreclosure action has begun, with specific court and sale information included.

• Permits tenants who do not receive required foreclosure notice to deliver written notice and recover damages or seek injunctive relief, with security deposits returned as prescribed by law.

• Excludes multifamily residential units with four or more connected units from these foreclosure protections.