Protecting Tenants At Foreclosure Act Of 2009

Greetings Peachtree City!  Is it just me or does it seem like the foreclosure situation mirrors an unwanted fever blister on your lip.  You know what I mean…it started kinda small then when you notice it you try and put everything on it to stop it from getting bigger and more noticeable.  Much to your chagrin, it seems like the more you do to it the bigger and more noticeable it seems to become until you just decide to ignore it and hope that it will eventually just go away!  Then in the meantime, you go about your business trying to pretend that it’s not there or at least just not that bad looking!  But the truth be told….it’s festering, unattractive, and more than likely nobody is gonna kiss you until it goes away….right! 

Alright, maybe that is an overblown example but you get the point and most of us have been through it.  Unfortunately the foreclosure problem has also created issues for unsuspecting renters.  The problem has become so enormous that the media picked up a story awhile back in Chicago where the Sheriff defied court ordered evictions because many of these folks had been paying their rents and now with only a few days notice were having their belonging (not to mention their bodies) physically removed from the properties.  

On May 20, 2009, President Obama signed into law the “Helping Families Save Their Homes Act of 2009.”  This law include Title VII, “Protecting Tenants At Foreclosure Act.”  The Act provides that in the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property, the party taking title to the property pursuant to the foreclosure, (”Foreclosing Party”) assumes the property subject to the rights of the tenant.  If the owner decides to evict the tenant, the tenant must be given a 90 day notice to vacate the premises.  

However, it should be noted that if the tenant executed a lease prior to the date of the foreclosure, the tenant has the rights to stay in the property until the end of the lease period.    Of course, the exception being if the new owners will be the occupants of the home.  Then the 90 day notice would apply. 

The act still raises numerous questions and is vague about related issues as they severely impact the rights of foreclosing lenders.  But, the primary purpose of preventing individuals and families from being evicted without due notice or consideration is paramount.  Now let’s hope we can find additional workable ways to help homeowners stay in their homes.