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That tenant may be able to sue you if they can demonstrate that as a result of your actions (or in this case-inaction to pay the mortgage) they incurred financial damages. However, if this occurred after the termination of the lease, they may not have much of a claim, unless you failed to evict the tenant properly, and now they're being evicted due to the foreclosure.

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Q: Can a tenant sue after the lease if they wont leave because the house is in foreclosure?
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