Tenants (Renters) Rights in a Foreclosure

 

The Protecting Tenants at Foreclosure Act (PTFA) went into effect in May 2009. The PTFA provides protections to tenants in foreclosed properties.

 

The PTFA is found in the Helping Families Save Their Homes Act of 2009 (a document of 1632 pages). Originally set to expire (or "sunset") on December 31, 2012, Dodd-Frank extended the expiration date of the PTFA to December 31, 2014. 

 

Under this legislation, the immediate successor of interest (generally the purchaser) of a foreclosed property must provide all tenants with at least 90 days notice prior to eviction because of foreclosure.

 

Additionally, tenants must be permitted to stay in the residence until the end of the lease, with two exceptions:

• The property is sold after foreclosure to a purchaser who will occupy the property as a primary residence, or

• There is no lease or the lease is terminable at will under state law.

Even if these exceptions apply, the tenant must be given at least 90 days notice prior to eviction. The rights of Section 8 tenants are also protected under the PTFA.

In this newsletter, we should like to direct you to further information on the PTFA.

Open Houses - HUGE Liability & Risks Involved (Part 2)

I have written previously on the issues and liabilities as a Listing Agent (or owner) of doing an Open House to market and sell a property.  See my previous blog article which addresses this issue in more detail.

This news article today only compounds my position on the issue.  What's alarming and disturbing about this instance is that the burglaries at Open Houses were perpetrated by a former Real Estate agent or REALTOR with "inside information" (literally and figuratively - LOL) and with the theft of house keys from a lock-box shackle to gain entry into [unattended] homes later.  

I hope this bastard gets prosecuted to the fullest extent of the law when it comes to sentencing....