A new law is offering protection to tenants of foreclosed properties. This new law exposes some of the issues of how to handle a tenant occupying a property that has been foreclosed on.
The Helping Families Save Their Homes Act of 2009 grants protection to tenants of foreclosed properties. The tenant is allowed to stay in the home for a minimum of 90 days after foreclosure. Additionally, tenants with a current lease that extends beyond 90 days are allowed to remain in the property for the remainder of their lease unless the new owner plans to occupy the property as a primary residence. The tenant must continue to pay rent and abide by all existing lease terms.