Wednesday, June 24, 2009
Protecting Tenants at Foreclosure
Dear Sue,
I have been renting a beautiful house in south Auburn for the last three years.
My landlord, who lives in the Bay Area, bought the house to live in when he retires. He assured me that I could rent it for at least five years.
Yesterday, I was reading the notices in the local newspaper and discovered that my home is in foreclosure!
I have until Dec 30th of this year remaining on my lease.
When the bank takes the home back will I be forced to leave? What about the contract I have with my landlord? I have kept my part of the bargain. I have been on time with my rent and I keep the place up.
Worried Walt
Dear Walt,
Dear Walt,
Tenants across the nation face the threat of eviction when the homes that they have been renting in good faith go into foreclosure.
According to the Legal Hotline at the California Association of Realtors, President Obama recently signed into law the, “Protecting Tenants at Foreclosure Act of 2009.”
All tenants including those under Section 8 must now get a 90-day written notice prior to eviction due to foreclosure. In addition, tenants that have leases can continue to live in their homes until the end of the term of their lease.
The National Housing Law Project (NHLP) will help tenants exercise their rights under this new law.
Under the new law, tenants with leases can occupy the property until the end of the lease term with one exception. If the new purchaser is going to occupy the property as their primary residence, the lease can be terminated with 90 days written notice.
In today’s market, a fairly high percentage of the buyers are investors. If an investor buys the property where you are renting, he will have to honor your lease and you will be able to stay in your home.
The only scenario where you will have to leave before the term of your lease is up is if the new buyer plans to reside in the property, in which case you will have to vacate after receiving a 90 days notice.
Many lenders are offering tenants cash to buy their leases out early. This is known as “Cash for Keys.” You can be proactive and initiate the negotiation. It will give you more control over your destiny.
This law became effective in May of this year and it expires at the end of 2012. This bill brings long overdue relief for the least blameless group in the housing foreclosure crisis, tenants.
Knowing your rights as a tenant is a matter of Good Home $$s and Sense.
To visit my company's website for more real estate information including new laws and property listings visit:
HomeTown Realtors
I have been renting a beautiful house in south Auburn for the last three years.
My landlord, who lives in the Bay Area, bought the house to live in when he retires. He assured me that I could rent it for at least five years.
Yesterday, I was reading the notices in the local newspaper and discovered that my home is in foreclosure!
I have until Dec 30th of this year remaining on my lease.
When the bank takes the home back will I be forced to leave? What about the contract I have with my landlord? I have kept my part of the bargain. I have been on time with my rent and I keep the place up.
Worried Walt
Dear Walt,
Dear Walt,
Tenants across the nation face the threat of eviction when the homes that they have been renting in good faith go into foreclosure.
According to the Legal Hotline at the California Association of Realtors, President Obama recently signed into law the, “Protecting Tenants at Foreclosure Act of 2009.”
All tenants including those under Section 8 must now get a 90-day written notice prior to eviction due to foreclosure. In addition, tenants that have leases can continue to live in their homes until the end of the term of their lease.
The National Housing Law Project (NHLP) will help tenants exercise their rights under this new law.
Under the new law, tenants with leases can occupy the property until the end of the lease term with one exception. If the new purchaser is going to occupy the property as their primary residence, the lease can be terminated with 90 days written notice.
In today’s market, a fairly high percentage of the buyers are investors. If an investor buys the property where you are renting, he will have to honor your lease and you will be able to stay in your home.
The only scenario where you will have to leave before the term of your lease is up is if the new buyer plans to reside in the property, in which case you will have to vacate after receiving a 90 days notice.
Many lenders are offering tenants cash to buy their leases out early. This is known as “Cash for Keys.” You can be proactive and initiate the negotiation. It will give you more control over your destiny.
This law became effective in May of this year and it expires at the end of 2012. This bill brings long overdue relief for the least blameless group in the housing foreclosure crisis, tenants.
Knowing your rights as a tenant is a matter of Good Home $$s and Sense.
To visit my company's website for more real estate information including new laws and property listings visit:
HomeTown Realtors
Labels: California Association of Realtors, Cash for Keys, Protecting Tenants at Foreclosure Act of 2009
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