Foreclosure is a hot topic these days, and protecting tenants is a subject of conversation. “Helping Families Save Their Homes Act of 2009” is a Federal Policy protecting tenants from eviction if their rental property goes into foreclosure. Landlords rightfully want to ensure that their tenants are financially solvent, before entering into a lease agreement with them. In Miami, it is common for a landlord to require a month (or two) security deposit. A run a credit and background check is likely also done for a perspective tenant prior to the landlord signing a lease. With foreclosure rampant, tenants need protections too. With the “Helping Families Sve Their Homes Act of 2009, Tenants may now STAY in a foreclosed property through the end of their lease unless:
Regardless, the tenant must be given 90-days notice before they can be evicted, and that notification must come from either the bank or the new owner.
These protections apply to “bona fide” tenants, who have written contracts that are “not substantially below fair market value”. If the tenant violates any terms of the lease, their protection from eviction under the “Helping Families Save Their Homes Act of 2009” ceases, and the tenant CAN be evicted.
In order to reduce the impact of foreclosure on our communities, this non-eviction provision of S.896 will continue through December 31, 2012 … and is backed by the National Association of Realtors (NAR).