Is Your Landlord Facing a Foreclosure?

You are paying the rent, but your landlord is not paying the mortgage. Unfortunately, this scenario is happening across America all too often. In 2009, the federal government decided to take action to help renters in your situation. The Protecting Tenants at Foreclosure Act of 2009 (the “Act”) modified the landscape of the foreclosure process.

Before the Act, the investor who purchased the foreclosed property did not have to give effect to an existing lease. As such, the tenant or renter would be evicted in a matter of weeks.

After the Act, the foreclosure sale purchaser must give the “bona fide tenant” at least 90 days notice to vacate (not the normal 3 day notice to vacate). In addition, the tenant may be entitled to remain in the property for the remainder of the lease if the foreclosure sale purchaser does NOT intend to live in the foreclosed property.

As a result of the Protecting Tenants at Foreclosure Act of 2009, tenants have a new bundle of rights that may be asserted. Strategically, these rights should be asserted at the proper time and forum. If these new rights are asserted properly, they can be powerful tools in your favor.

The Act is extremely unfavorable to mortgage companies and foreclosure sale investors. As such, they are currently looking at ways to combat its detrimental effect. If your landlord is facing a foreclosure, call my office as soon as possible to discuss your legal options.

For more on this topic go to: Protecting Tenants at Foreclosure Act