What Is a Notice to Vacate From Foreclosure?
A notice to vacate from foreclosure is the notification required by law for new owners of foreclosed properties to provide to existing tenants or former owners of those properties. The notice informs the tenants that the landlord from whom they were renting the property has had the property seized and sold after not making payments. It is used to tell tenants or former owners that they will be required to move out of the property by a specified date.
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Notice to Vacate
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If a landlord has a reason to ask a tenant to move out of a property, for example, because of failure to pay rent or because he has recently bought the property and intends to to occupy it or rent it out to a tenant of his choice, the landlord must provide a notice to vacate, which gives the reason for the eviction and the date by which the tenant or tenants must remove themselves and their belongings from the property.
Foreclosure
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Merriam-Webster's Dictionary of Law defines foreclosure as "a legal proceeding that bars or extinguishes a mortgagor's equity of redemption in a mortgaged real property." In short, it is the seizure and sale, by a bank or other financial institution to whom the balance of a mortgage is owed, of a house or other property that the mortgage holder has ceased to make payments on according to the terms of the mortgage.
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Protecting Tenants at Foreclosure Act
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The Protecting Tenants at Foreclosure Act, passed by the United States Congress on May 20, 2009, is a law that defines the responsibilities of the new owners of a foreclosed property with respect to bona fide tenants and the number of days' notice they must give existing tenants to leave the newly acquired property.
Tenants With Leases
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Under the terms of the Protecting Tenants at Foreclosure Act of 2009, bona fide tenants of properties who entered into leases to occupy those properties before a notice of foreclosure must be allowed to occupy the property until the lease end date. A bona fide lease cannot be with the mortgagor or the mortgagor's spouse, children or parents, and must be the result of an arm's length transaction. It must also set a rental rate that is not substantially less than fair market rent for the property.
Tenants Without Leases
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New owners of foreclosed properties may, from the date of the official transfer of ownership, give tenants notice that they must vacate the property not less than 90 days after receiving the notice.
Former Owner
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If the former owner of a property that has been sold in foreclosure is still living in the house, he may have as little as three days to leave the premises before the new owner can start the eviction process.
Exceptions
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A tenant with a lease may be given 90 days notice to vacate a foreclosed property by the new owner if the purchaser plans to occupy the property as his primary residence.
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References
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