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Protecting Tenants At Foreclosure |
Are you a tenant whose house is being foreclosed? If you are a tenant and the home you have been renting is being or has been foreclosed, you need to know what your rights are. There is a new federal law that offers protection to tenants in foreclosed properties. How do you qualify? You must be a renter, not a former owner or child, spouse or parent of former owner The rent paid must be close to fair market value (around what most people would pay to rent the property). If rent is much less than fair market value, you must have reduced rent due to Federal, State, or local subsidy. The property has been foreclosed on or after May 20, 2009. What does the new federal law mean? If the new buyer of the house is going to live in the house, they must give you 90 days from the date of the foreclosure sale to move out. If the new buyer does not plan to live in the house, they must allow you to live out the rest of your lease in the house. If you do not have a lease or you are a month-to-month tenant, the new buyer must give you 90 days from the date of the foreclosure sale to move out. What does this mean for Section 8 tenants? If the new buyer plans to live in the house, they must give you 90 days from the date of the foreclosure sale to move out. If the new buyer does not plan to move in the house, then they are required to accept the lease between you and the former owner, and they are required to accept the payments from the Public Housing Authorities. Important Things To Know: Pay your landlord rent until the month of the foreclosure. Try to find out who has bought the property as soon as possible (call County Deed Recording Office, Georgia Law Center for the Homeless, or Atlanta Legal Aid). Attempt contact the lender of the mortgage (if possible) or the property management company in order to get some information. Until you find the new buyer, continue to save the money you would be paying for rent. The new landlord is not responsible for old security deposit. You will have to get it from your old landlord. The new landlord cannot give you 90 days notice to move out before the date of the foreclosure sale. If you cannot find a copy of your lease, you will be treated as a month-to-month tenant. Moving out or abandoning property will forfeit any rights you have under this law. If you are planning to accept a “cash for keys” arrangement, be sure to get it in writing and have an attorney review it before signing. |
