You need to be aware of the protections that federal law provides to renters during foreclosure.
Even with inventories down, there are plenty of foreclosed properties awaiting sale. While the problems associated with property vacancies and blight have gotten much attention during the housing crisis and recovery, about 20 percent of foreclosed properties are occupied by rental tenants whose protections are sometimes overlooked or ignored in the sales process. Since foreclosure listings continue to be a significant part of the landscape, it’s essential to be aware of the rights of tenants in these situations.
Tenants’ rights were strengthened considerably in 2009 by the enactment of a federal law known as the Protecting Tenants at Foreclosure Act. Before the PTFA was enacted, tenant protections were left to the states, though many failed to address the issue at all. The federal law supersedes any state protections against eviction unless the state provisions are stronger, as is the case in California, Connecticut, and Maryland. READ MORE: http://realtormag.realtor.org/law-and-ethics/law/article/2013/05/protecting-tenants
Video Learn more about your role and responsibilities under the PTFA. NAR’s William Gilmartin talks with Bauman in a five-minute REALTOR® Magazine video, “Tenant Rights in Foreclosure Listings.”
