A law that expired in December 2014 was restored this month. The Protecting Tenants at Foreclosure Act (PTFA) is intended to shield tenants from eviction because of foreclosure on the property they occupy.
The PTFA applies in the case of any foreclosure on a federally related mortgage loan or on any dwelling or residential real property. Generally, tenants of foreclosed properties may have the right to remain in the property for at least 90 days after foreclosure and may have the right to stay longer.
Here are a few tips property managers should consider with the resurrection of the PTFA.
- Get familiar with Paragraph 4(I): Foreclosure of the Residential Leasing and Property Management Agreement (TAR 2201).
- Provide tenants with the General Information for Tenant of Property Facing Foreclosure (TAR 2220) form, which is updated to reflect the reinstatement of the PTFA.
- If you are managing a property under foreclosure, be sure to document everything you can.
- Avoid giving tenants or the owner legal advice and refer them to an attorney.
More information for renters in foreclosure is available from the National Low Income Housing Coalition.
So happy that this was reinstated as numerous people were getting affected by it on a daily basis. This way the tenants will have some type of security for the house that they live in.
We have been living in this house for 6yrs. We just found out last wk that our landlord has not been paying the morgage. Now the house is in forclosure. Going up for auction March 3rd. Don’t know what to do. We do know that we are paying her any rent on the 3rd.
Will appreciate any advisee
Would you mind sharing your outcome?
By any chance did your problem get resolved was your contract respected ?were u evicted?or allowed to live there as your contracts says ….. I’m going through the exact same problem… thanks for any tips you can tell me
I think it is such a good gesture that they have finally resorted to the law as there were so many tenants who feared eviction because of it. This would allow them to live peacefully.
Home was foreclosed and new owner is giving 2 weeks to be out. I asked for 30 days.
If you are / were renters then you have 90 days by law.