One aspect of the foreclosure crisis that is all too often forgotten, are the tenants of homes being foreclosed on. Tenants of foreclosed properties may be evicted even though they have always paid their rent on time and followed all terms of their lease. Is there any protection for this group? Yes, the Protecting Tenants at Foreclosure Act of 2009.
The Protecting Tenants at Foreclosure Act of 2009, or PTFA, was enacted by the federal government to provide tenants of foreclosed properties protection until the end of 2014. Under the Act, a tenant must be given at least 90 day's advance notice of eviction from the new property owner. However, the tenant must be a bona fide tenant, which means:
1. the tenant is not the borrower of the mortgage or the child, spouse, or parent of the borrower;
2. the lease is the result of a arms-length transaction; and
3. the lease requires the payment of rent that is not substantially less than the fair market rent for the property.
So if you are currently renting property that is being foreclosed on or are renting your property that is facing foreclosure, the tenants will not have to vacate the property without any notice. At a minimum, the tenants will have 90 days advance notice of when they must be out of the property. Regardless, it is always a good idea to seek the advice of a Jacksonville Foreclosure Defense Attorney.
