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Thursday, March 4, 2010

The Protecting Tenants at Foreclosure Act

On May 20, 2009 President Obama signed a federal law protecting tenants when the property they rent is sold at a foreclosure sale.  The is a federal law but it applies to state court eviction proceedings. 
These rules apply to the foreclosure of any mortgage on residential property where the property is foreclosed upon after May 20, 2009.

Who Does the Act Protect?
The lease between the tenant and the former landlord or owner who lost the property to foreclosure, must meet the following rules:

1. The tenant cannot be the child, spouse or parent of the former owner of the property.

2. The original lease must have been the result of an arms-length transaction. The lease must not be an attempt to avoid or gain the protection of this new law.

3. The rent due under the lease must be close to what other apartments rent for unless the government subsidizes the rent.
 
The new law includes protections for tenants and responsibilities and even apply to some tenants with subsidized housing payments.

Read more about how the law works at OKLaw.org (http://www.oklaw.org/)
The article is posted in our Housing>Lanlord and Tenant Issues>Tenants in Foreclosure Properties materials at this link:
http://www.oklaw.org/link.cfm?2938
 
If you find yourself in this situation, as a tenant or a landlord, please talk to a lawyer and get help with your specific information.