Protecting Tenants at Foreclosure Act of 2009 – A Summary

The Helping Families Save Their Homes Act of 2009 (Pub. L. 111–22) provides a 90-day notice requirement and additional protections for tenants in foreclosed properties.  Below you will find the major provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.

- During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause.

- If the lease ends in less than 90 days, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice.

- At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.

- The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease.

These provisions expire on December 31, 2012.

Click here to read Title VII, Protecting Tenants at Foreclosure Act of 2009.

Update:

Dodd-Frank Extends the Expiration Date

The Tenant Protection Act was originally set to expire or “sunset” on December 31, 2012; Dodd-Frank changes that, and the Tenants Protection Act will now sunset on December 31, 2014.

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2 Responses to “Protecting Tenants at Foreclosure Act of 2009 – A Summary”

  1. This Federal statute may protect all tenants including those guilty of non payment of rent (even though this was not the intent of Congress).

    The statute should be corrected to allow for eviction of tenants who are guilty of non payment of rent (not engaged in legal rent withholding) and/or other just cause involving wrongdoing by the tenant without being required to wait the 90 days.

    Another possibility which would protect the landlord from a claim of being in violation of the act, would be for the landlord, prior to taking any action to evict the tenant, to file an equity action for a declaratory judgment ruling that the tenant who has not paid rent (and is not engaged in legal rent withholding) is not a bona-fide tenant and not covered by the protections of the Protecting Tenants at Foreclosure Act of 2009.

    • Conversely, if you are a bona fide tenant in possession of rental property in foreclosure, and if you are served with a notice to quit or an eviction notice that provides for less than the required 90 days, you need to respond with written notice that you are exercising your rights under the Protecting Tenants at Foreclosure Act, Pub. L. No. 111-22, § 702 (2009), to retain possession of the rental property for up to the full 90 day period.
      Brian

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