The foreclosure of a Havelock apartment building has some tenants wondering what it means for them.
The four-unit apartment building, building “E” at 201 E. Shipman Road, is scheduled to be sold at auction later this month.
“I just found out from you,” tenant Tashara Brown said to a reporter.
The building is in foreclosure because the owner was in default on a loan, according to the bank.
Brown wondered what the forthcoming change of ownership means her; she signed a lease in April.
“I’m really not prepared for having to move,” Brown said.
Turns out she doesn't need to worry.
Federal law states that, in most cases, a tenant’s lease must be honored in the case of a change of ownership.
The company that manages the apartment building, but does not own it, is Town & Country Rental and Management Agency in Havelock.
A supervisor, Beth Martin, said the tenants will be taken care of in any case.
The bank is now planning to keep the apartment building instead of selling it at auction, Martin said Thursday.