Finally Renters/Tenants Get Much Needed Protection From Foreclosures!

  

Long overdue in Florida and unfortunately with no help from the state legislature, both tentants and property managers can now find relief in the new Federal Bill enacted last week:

President Obama signed S. 896, P.L. 111-22, on May 20, 2009. This bill includes a nationwide 90 day pre-eviction notice requirement for tenants in foreclosed properties. The provisions of the bill are effective on enactment, May 20, 2009.

Specifically, the new law will require that the immediate successor in interest at foreclosure

1. provide bona fide tenants with 90 days notice prior to eviction and
2. allow bona fide tenants with leases to occupy the property until the end of the lease term except the lease can be terminated on 90 days notice if the unit is sold to a purchaser who will occupy the property.

With the length of time that foreclosures take, this should generally ensure that tenants will be able to occupy their properties until the end of their lease term.

Unfortunately there is no additonal protection for renters who lease from private owners with respect to their security deposit. Renters are entitled to a refund based on the relative condition of the property on move out to its move in condition. However, private landlords in foreclosure have been known to liquidate this money, with little to no effective recourse for the tenant.

If you are renting from a Professional property manager, you should make sure you notify them of a foreclosure notice immediately.