You are bound by the agreement that the seller made with the tenant. According to Realtor Magazine “about 20% of foreclosed properties are occupied by rental tenants whose protections are sometimes overlooked or ignored in the sales process.” For your protection your offer should require the seller to notify you before writing a new contract or altering any agreement with the tenant. Tenant rights were significantly strengthened with the passage of the 2009 Federal law known as the Protecting Tenants at Foreclosure Act. A tenant with a long term lease is entitled to lease the home for the duration of the contract. There is an exception if the new owner is intending to occupy the home, then the lease term ends with 90 day’s notice. The law does not apply to the former owner, spouse, their parents, or children.