LawsonGroupMediation

Attorney Keith Saks alerted me to the Protecting Tenants at Foreclosure Act which was signed into law on May 20, 2009.

This law protects tenants from the foreclosure of federally-related mortgage loans, which is most of them. Under the law, a tenant with a lease may remain in the home for up to 90 days following a notice to vacate. They may actually remain in the home for the balance of the lease unless the home is sold by the foreclosing entity to a new owner who will live in the home as their primary residence. In that event the lease will terminate on the date of sale subject to the 90 day notice to vacate.

Tenants at will, or on a month to month rental will be subject to a 90 day eviction notice.

What does this mean for short sales? This law applies to foreclosures, not short sales.

Any of you representing buyers purchasing an REO may find some that are occupied pursuant to this new law. Likewise if you are selling REO’s you may inherit a property to sell that is occupied, unless the bank does not turn it over for sale until it is vacated, which is the likely the scenario.

For those who wish to read this law, the federal statute is Title VII, Sec. 701 et seq. You can simply Google “Protecting Tenants at Foreclosure Act”.

Ken Lawson JD

www.LawsonGroupMediation.com

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