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Consuelo Peniza's Blog

By Consuelo Peniza | Agent in Weston, FL

Protecting Tenants at Foreclosure Act Extended Through Dec. 31, 2014

The Protecting Tenants at Foreclosure Act is part of the ‘Helping Families Save Their Homes Act of 2009′. These laws protect tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, 2014.

The law provides that “any immediate successor in interest” in a foreclosed property (on a “federally related mortgage loan” or on any dwelling or residential real property), including a bank that takes title to a house upon foreclosure, will assume the interest subject to the rights of any bona fide tenant and will need to comply with certain notice requirements.

Under this law, the immediate successor in interest of a dwelling or residential real property must provide tenants with a notice to vacate at least 90 days before the effective date of such notice. Tenants also must be permitted to stay in the residence until the end of their leases unless the property is sold after foreclosure to a purchaser who will occupy the property as a primary residence or, when there is no lease or the lease is terminable at will under state law. However, even when these exceptions apply, tenants must still receive 90 days’ notice before they may be evicted.

It is important to note that the protections of this law apply to tenants under a “bona fide” lease or tenancy. A lease or tenancy is “bona fide” only if the defaulting borrower (or a child, spouse, or parent) is not the tenant, the lease is an arm’s-length transaction and the lease requires reasonably fair market rent (or the rent is subsidized due to a federal, state, or local subsidy – e.g. Section 8 Housing).  

Article written On August 6, 2012, in Attorney Jennifer D. Scott, Banking, Government, Real Estate, by Attorney Jennifer D. Scott.

The Protecting Tenants at Foreclosure Act is part of the ‘Helping Families Save Their Homes Act of 2009′. These laws protect tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, - See more at: http://www.joseazcarate.com/sample-page/our-blog/#sthash.rIJ8RXgE.dpuf
The Protecting Tenants at Foreclosure Act is part of the ‘Helping Families Save Their Homes Act of 2009′. These laws protect tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, - See more at: http://www.joseazcarate.com/sample-page/our-blog/#sthash.rIJ8RXgE.dpuf

The Protecting Tenants at Foreclosure Act is part of the ‘Helping Families Save Their Homes Act of 2009′. These laws protect tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, 2014.

The law provides that “any immediate successor in interest” in a foreclosed property (on a “federally related mortgage loan” or on any dwelling or residential real property), including a bank that takes title to a house upon foreclosure, will assume the interest subject to the rights of any bona fide tenant and will need to comply with certain notice requirements.

Under this law, the immediate successor in interest of a dwelling or residential real property must provide tenants with a notice to vacate at least 90 days before the effective date of such notice. Tenants also must be permitted to stay in the residence until the end of their leases unless the property is sold after foreclosure to a purchaser who will occupy the property as a primary residence or, when there is no lease or the lease is terminable at will under state law. However, even when these exceptions apply, tenants must still receive 90 days’ notice before they may be evicted.

It is important to note that the protections of this law apply to tenants under a “bona fide” lease or tenancy. A lease or tenancy is “bona fide” only if the defaulting borrower (or a child, spouse, or parent) is not the tenant, the lease is an arm’s-length transaction and the lease requires reasonably fair market rent (or the rent is subsidized due to a federal, state, or local subsidy – e.g. Section 8 Housing).  

Article written On August 6, 2012, in Attorney Jennifer D. Scott, Banking, Government, Real Estate, by Attorney Jennifer D. Scott.

- See more at: http://www.joseazcarate.com/sample-page/our-blog/#sthash.rIJ8RXgE.dpuf

The Protecting Tenants at Foreclosure Act is part of the ‘Helping Families Save Their Homes Act of 2009′. These laws protect tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, 2014.

The law provides that “any immediate successor in interest” in a foreclosed property (on a “federally related mortgage loan” or on any dwelling or residential real property), including a bank that takes title to a house upon foreclosure, will assume the interest subject to the rights of any bona fide tenant and will need to comply with certain notice requirements.

Under this law, the immediate successor in interest of a dwelling or residential real property must provide tenants with a notice to vacate at least 90 days before the effective date of such notice. Tenants also must be permitted to stay in the residence until the end of their leases unless the property is sold after foreclosure to a purchaser who will occupy the property as a primary residence or, when there is no lease or the lease is terminable at will under state law. However, even when these exceptions apply, tenants must still receive 90 days’ notice before they may be evicted.

It is important to note that the protections of this law apply to tenants under a “bona fide” lease or tenancy. A lease or tenancy is “bona fide” only if the defaulting borrower (or a child, spouse, or parent) is not the tenant, the lease is an arm’s-length transaction and the lease requires reasonably fair market rent (or the rent is subsidized due to a federal, state, or local subsidy – e.g. Section 8 Housing).  

Article written On August 6, 2012, in Attorney Jennifer D. Scott, Banking, Government, Real Estate, by Attorney Jennifer D. Scott.

- See more at: http://www.joseazcarate.com/sample-page/our-blog/#sthash.rIJ8RXgE.dpuf

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