A new law was passed in May that protects tenants whose landlords fall into foreclosure. Under the Helping Families Save Their Homes Act, tenants have the right to stay in their homes after foreclosure for 90 days or through the term of their lease. The bill also provides similar protections to housing voucher holders.
The message hasn’t filtered down to everyone, though. If you are renting a property that is in foreclosure, you may get a 60 or even 30 day notice to move. Don’t accept these notices at face value, is the advise of attorney Shirley Gibson, they may not be legal. Here’s more advise for renters from Shirley Gibson of the Legal Aid Society of San Mateo:
Free legal help is available to you from your local Legal Aid Society. Click here for a list of KTEH’s partners who can help with legal and other foreclosure issues.
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July 29th, 2010 at 7:23 am
I am in a hime that I just received paperwork on is being forclosed on. What kind of help is there for me to help me move. The paperwork states that the payments haven’t been made since December but I have paid him every month. Is there any financial help I can get, do I have to keep paying rent? I am at a loss and very confused
December 17th, 2010 at 5:03 pm
If you are living in a home whose mortgage is owned by Fannie Mae you may be able to sign a month to month lease if the property is foreclosed and reverts back to Fannie Mae. Additionally, Fannie Mae has relocation programs for existing renters. For more information you can select the link here, http://www.fanniemae.com/kb/index?page=home&c=homebuyers_supportforrenters
While the new laws offer more protection to tenants living in homes that are in foreclosure tenants have equally expressed a delay in receiving information the home was involved in the foreclosure process. This delay can lead to rents being paid to the landlord after the foreclosure sale.
To prevent all this tenants can register to receive immediate foreclosure alerts when their home is in foreclosure. This early notice can help you to renegotiate your lease or make a decision if it is best to deposit future rent payments into a checking account and have a judge make a decision. Often a landlord may not proceed with the eviction process or will accept the rent payments in agreement to terminate the lease early, modify the payment, and apply security deposits to future rents. Tenants can register to receive foreclosure alerts here, http://www.worldclassmemberservices.com/foreclosureprotection.html