There is help for renters of foreclosure properties too!
President Obama signed S. 896, P.L. 111-22, on May 20, 2009. This bill includes a nationwide 90 day pre-eviction notice requirement for tenants in foreclosed properties. The provisions of the bill are effective on enactment, May 20, 2009.
Specifically, the new law will require that the immediate successor in interest at foreclosure
- provide bona fide tenants with 90 days notice prior to eviction and
- allow bona fide tenants with leases to occupy the property until the end of the lease term except the lease can be terminated on 90 days notice if the unit is sold to a purchaser who will occupy the property.
A bona fide lease or tenancy is one where the tenant is not the mortgagor or a member of the mortgagor’s family, the lease or tenancy is the result of an arms length transaction, and the lease or tenancy requires rent that is not substantially lower than fair market rent or is reduced or subsidized due to a Federal, State or local subsidy.
For more information from the National Low Income Housing Coalition and the National Housing Law Project, Click here