Protections for Tenants in Foreclosed Properties
May 27, 2009
Renters whose landlords fall into foreclosure have new protections from evictions under a bill passed by Congress and signed by President Obama.
The bill provides renters whose landlords have lost their properties to foreclosure the right to stay in the home for 90 days after the foreclosure or through the term of their lease unless the property is sold to someone who will occupy the home. The bill also provides similar protections to housing voucher holders.
The National Low Income Housing Coalition estimates that 40 percent of the households who lose their homes because of foreclosure are renters.
The renter protection provisions went into effect on May 20, 2009, and will expire at the end of 2012. In most states, renters get little or no notice to vacate their homes upon their landlords’ foreclosures. The new federal protections preempt state law unless a state provides a greater level of renter protections at foreclosure.
Entry Filed under: Foreclosures. .
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austintenantscouncil | June 1, 2009 at 5:14 pm
NLIHC’s Renters in Foreclosure Toolkit offers sample letters that tenants can send to their landlord if they receive a termination notice in violation of the new law.