Doesn’t Mean Tenants Have to Move

It’s a question that is popping up more and more as the foreclosure rate increases – if a landlord goes into foreclosure, does the tenant have to move out? The answer in most cases is no. Lenders have to honor the terms of the lease agreement.

According to the Protecting Tenants at Foreclosure Act passed by Congress in May 2009, renters are eligible to stay on the foreclosed property as long as they have a valid lease and are paying rent regularly. Those with a month-to-month lease arrangement receive 90-days to move. This is great for the tenants, but unfortunately in some cases, lender representatives are relying on tenant ignorance of their rights and bullying or threatening them into leaving quickly.

The problem is that because of the backlog of foreclosures, lenders often contract with outside law firms or real estate brokers to handle them. In some cases, it is these groups overstepping their bounds and not playing by the rules.

This entry was posted on August 29, 2010 at 12:18 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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