Landlord and Tenant Rights and Responsibilities Article
WHAT IF I RENT A HOUSE THAT'S IN FORECLOSURE - The Protecting Tenants at Foreclosure Act
The Protecting Tenants at Foreclosure Act
This law expired on December 31, 2014
IMPORTANT PLEASE READ: The Federal Law, Protecting Tenants at Foreclosure Act, expired and is no longer valid as of December 31, 2014. While there were some attempts in the House to revive this law in 2015 none have been successful. Arizona State Law, A.R.S § 33-1331, gives tenants of foreclosed properties some limited protections; information about these protections can be found in this article. This article remains on AZLawHelp.org purely for historical value for those interested in how the Protecting Tenants at Foreclosure Act operated from 2009 through 2014.
There are legal protections for tenants renting a house that is in or goes into foreclosure. The Protecting Tenants at Foreclosure Act (PTFA) was passed by Congress signed into law by the President Obama in 2009; subsequently the law was extended in 2010. The PTFA expired on December 31, 2014. The PTFA, depending on the facts in a particular situation, requires that renters in foreclosed homes be allowed to stay or given sufficient notice under the law.
There are legal protections for tenants renting a house that is in or goes into foreclosure. The Protecting Tenants at Foreclosure Act (PTFA) was passed by Congress signed into law by the President Obama in 2009; subsequently the law was extended in 2010. The PTFA expired on December 31, 2014. The PTFA, depending on the facts in a particular situation, requires that renters in foreclosed homes be allowed to stay or given sufficient notice under the law.
Who qualifies for protection under the PTFA?
The tenant protection provisions apply in the case of any foreclosure on a “federally related mortgage loan” or on any dwelling or residential real property. The tenant must also be “bona fide.” A lease or tenancy is “bona fide” only if:
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The mortgagor or a child, spouse, or parent of the mortgagor under the contract is not the tenant;The lease or tenancy was the product of an arm’s-length transaction; andThe lease or tenancy requires the receipt of rent that is not substantially less than fair market rent or the rent is reduced or subsidized due to a federal, state, or local subsidy.In other words the lease must be made with another person and not with oneself and the rent payments must be a fair amount for the property that is not supplemented by the government.When do renters in foreclosed homes get to stay and when do they have to leave?Renters Get to Stay IF:Renters get to stay for the duration of the lease, if all of the following requirements are met:
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There is a valid lease (not the end of the lease term),The lease was signed before receiving notice of foreclosure (whether judicial foreclosure or trustee sale), andThe new owner does not intend to occupy the property as a primary residence.Renters Cannot Stay But Must Be Given Notice IF:In most other situations, the renters will have to leave, once the foreclosure is complete, and upon receiving 90 days notice from the new owner. The common situations where a renter will have to vacate after the foreclosure upon receiving notice are:
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Renters must vacate if there is a valid lease and they had notice of foreclosure before signing the lease; orRenters must vacate if there is a valid lease, and even if there was no notice of foreclosure but the new owner intends to occupy the property as a primary residence; orRenters must vacate if there is no valid lease, including where a lease expires and the renter is paying month-to-month.
Why does the law end December 31, 2014?
The law has what is called a sunset provision, meaning it has an expiration date. The original date was extended in the “Dodd-Frank Wall Street Reform and Consumer Protection Act”, so that the law will be repealed on December 31. 2014. When laws are written, the legislative body writing the law may set a date of when that law will end, referred to as a “sunset” clause or provision (Note: Not all laws have sunset provisions, it is not required). The PTFA is a federal law, Congress would have to authorize and extension or make the law permanent and the President would have to sign it into law.Source: See 12 U.S.C. 5220 or search the US Code online with the US House of Representatives website. For additional information see the Consumer Financial Protection Bureau website.
Comments:QUESTIONS
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My landlord has asked my roommate from what they have told me to write down my ssi number on note paper instead of calling my guardian or calling me or even asking in person what do I do and do I need to contact authorities
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I have a vacation rental that I need to sell. Does the new owner have to honor any future vacation rentals?
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As a tenant, am I required to do a "walk through" of rental home following my move out? I have satisfied all rental payments and terms and left the home in exceptional condition. T My landlord is refusing to refund me overpaid funds. I don't know why I would accommodate his request? Please advise. he lease does not state I am obligated to this request.
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I have a landlord that am renting from, have been at my residence for 3 years now,We had an agreement to fix the home for down payment to buy.So my husband and really got to work on the home as it was going to be ours, So now she wants us to move in 30 days now all the work is done The time we here she acted like it was a big deal to fix things ,had the kids bathroom full of mold making them sick and termites like crazy. We had fixed roof never got payed labor and cleaned hurricane damage and trees never got paid or taken off rent.Now the home is NiCE she wants us out should she have to pay
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My landlord has not returned my security deposit. Next Monday will be 14 business days (AZ law) She is being shady and I have a feeling she has no intention of giving it back or my prorated rent for that matter. (It was a month to month lease but right after I gave my 30 days she found a new tenant so she owes me for 90% of the month as well) In her lease contract she wrote that she has 30 days to return deposit, however that goes against the state law. Will I have to wait 30 days or does State Law trump a lease contract?
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Who does a landlord get reported to if they fail to issue security deposits within 14 days?
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I filled an application and put $200 down for a deposit. I told the complex I wanted to move in. I was involved in a car accident and I received a call the next day saying I had to be in the office by 6pm to sign a lease. I asked if I could come in the following day. The complex told me no. I asked for my deposit back. Initially the complex stated they would give me a refund. But a few days later the apartment manager noted I was not going to receive a refund. I have not heard from the complex and I would like my $200 back. Is there anything I can do?
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I have been renting a house for the past 4 months and last night the landlord showed up and starting moving her stuff in , can she do that? How do I stop it? I called the police and they said I couldn't do anything about it.
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My landlord has sold the house I am renting. I have 10 months left on the lease. The new home-owner is not buying the house as "occupied". I have agreed to move out. Do the old homeowners owe me any sort of compensation because they broke the lease (comparable to what I would owe if I were the one breaking the lease)? I had about 1 weeks notice. Thanks!
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Who in tucson do I report my landlord about living conditions
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