The Protecting Tenants at Foreclosure Act of 2009

The Protecting Tenants at Foreclosure Act of 2009 allows tenants who live in foreclosed residential properties to stay in their homes until they are given at least 90 days advance notice to vacate, with the buyer as the new landlord.  Moreover, if the tenant has a current lease, the tenant is entitled to stay until it expires, unless the buyer or some subsequent purchaser intends to move into the home and make it a primary residence-in which case, the tenant still must be given at least 90 days advance notice to vacate before being required to move out.  (To be protected, any lease must be a bona fide lease not made to the mortgagor or the child, spouse, or parent of the mortgagor, made at arms-length, and for fair market rent.) 

The federal law applies to tenants who live in residential properties that are sold at a foreclosure sale on or after the law’s effective date, which was May 20, 2009.   

For more information, please visit www.nlihc.org.