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.
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