Understanding The Helping Families Save Their Homes Act By GoRenter.com
UNDERSTANDING THE NEW LANDLORD TENANT FORECLOSURE ACT
"HELPING FAMILIES SAVE THEIR HOMES".
On May 20th 2009 a new law passed by Congress and signed by President Obama provides new protections for tenants whose landlords fall into foreclosure. The law the President has signed is the Helping Families Save Their Homes Act which expands on the success of the Making Home Affordable Program first announced in February. GoRenter.com (Arizona property management company) is happy to see this new law enacted as it provides the needed protection tenants have been lacking in the turbulent Arizona real estate market.
The protections within the new law, the Helping Families Save Their Homes Act, are effective immediately and expire at the end of year 2012. With the new law, tenants now have the right to remain in their homes after foreclosure for 90 days or through the term of their lease as long as the new buyer of the property does not intend on living in the residence. The bill also provides similar sanctions to low income families holding housing vouchers. Below is the actual law:
TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT
SEC. 701. SHORT TITLE.
This title may be cited as the `Protecting Tenants at Foreclosure Act of 2009'.
SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.
(a) In General- In the case of any foreclosure on a federally-related mortgage loan
or on any dwelling or residential real property after the date of enactment of this title, any immediate successor in interest in such property pursuant to the
foreclosure shall assume such interest subject to--
(1) the provision, by such successor in interest of a notice to vacate to any
bona fide tenant at least 90 days before the effective date of such notice;
and
(2) the rights of any bona fide tenant, as of the date of such notice of
foreclosure--
(A) under any bona fide lease entered into before the notice of
foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or
(B) without a lease or with a lease terminable at will under State
law, subject to the receipt by the tenant of the 90 day notice under subsection (1),
except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants.
(b) Bona Fide Lease or Tenancy- For purposes of this section, a lease or tenancy shall be considered bona fide only if--
(1) the mortgagor or the child, spouse, or parent of the mortgagor under
the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length transaction; and
(3) the lease or tenancy requires the receipt of rent that is not substantially
less than fair market rent for the property or the unit's rent is reduced or
subsidized due to a Federal, State, or local subsidy.
(c) Definition- For purposes of this section, the term `federally-related mortgage loan' has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).
For example an estimated one third of homes that are in foreclosure in Arizona are rentals. This new federal law will allow these tenants to stay in the foreclosed property for 90 days as long as they are abiding by their lease terms. This new program is the same across the nation.
Many landlords across the nation have committed fraud by signing tenants into one year leases knowing they were going to let the house go to foreclosure. This new federal law is the protection many tenants were lacking and finally gives peace of mind to any family renting a home. GoRenter.com cares about our tenants rights. Our company goes to great lengths to pre-screen both tenants and landlords ensuring a suitable match is made that is in the best interest of all parties.
GoRenter.com is an Arizona property management company that specializes in helping local and out-of-state real estate investors find appropriate tenants for their rental homes. We provide full-circle service including a complete maintenance division and 24 hour customer support center. For Renters, we have the largest selection of available rental homes in the Phoenix-Metro area & clear contracts that make renting a home through us easy. So whether you a renter or a landlord, the all new GoRenter.com is the perfect choice for all of your rental / property management needs. Our office line is 602-512-4406.