New law gives tenants in foreclosed homes additional protection
July 3rd, 2009
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Dennis Norman
By: Dennis Norman
If you buy a foreclosed home that has an existing tenant in it you need to be sure you are aware of and comply with provisions of the “Helping Families Save Their Homes Act of 2009″. The act went into effect on May 20, 2009 and provides the following protections for the existing tenant:
- For the act to apply the tenant must be under a “Bona Fide Lease or Tenancy” which the act describes as:
- the tenant is not the mortgagor or the child, spouse or parent of the mortgagor
- the lease or tenancy was the result of an arms-length transaction, and
- the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a Federal, State or local subsidy
- tenancy or lease was in effect as of the date of the “notice” of foreclosure Read more…
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