Tenants living in a house that is being foreclosed have rights


The Helping Families Save Their Homes Act of 2009 (Pub. L. 111–22) provides a 90-day notice requirement and additional protections for tenants in foreclosed properties. Below you will find the major provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.


– During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause, such as failure to pay rent or damaging the property.


– If the lease ends in less than 90 days after the foreclosure sale, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice.


– At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.


– The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease.


It must be remembered that the tenant must not breach the lease.  In other words, the tenant must continue to pay the monthly rent payment and must keep the property in good repair as required by the lease .


The Tenant Protection Act was originally set to expire or “sunset” on December 31, 2012; Dodd-Frank changes that, and the Tenants Protection Act will now sunset on December 31, 2014.

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