Information on Home Foreclosure and Renter's Rights
Your landlord has not paid the mortgage and now your home is in foreclosure. You are being evicted through no fault of your own.
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Foreclosure Statistics
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According to RealtyTrac, there were more than 1.9 million U.S. foreclosure filings in the first half of 2009. California, Florida and Arizona had the highest rates.
Foreclosure Defined
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A property owner does not repay a loan and the lender files a Notice of Default. Foreclosure allows the lender to recoup the loan. Recovery is usually accomplished by the lender selling the property or taking ownership and renting it.
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New Law
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On May 20, 2009, President Obama signed the Protecting Tenants at Foreclosure Act of 2009. Before this, foreclosure meant that most renters were subject to immediate eviction.
Renter's Rights Under the New Law
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When property goes into foreclosure, the renter's lease must be honored. Month-to-month renters must be given a 90-day notice to vacate. All tenants, including Section 8, are protected from immediate eviction. A tenant in a home that new owners want to move into, however, can lose the lease with a 90-day notice.
Moving Out
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New owners, believing that foreclosed property is easier to sell when empty, may offer renters cash to terminate the lease early. If a new home is available, the deal could be worth it. To recuperate security and other deposits, renters may need to sue their original landlords.
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References
- Photo Credit Image by Flickr.com, courtesy of Mike Licht
