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Protecting Tenants at Foreclosure Act - Frequenty Asked Questions
What properties are covered by the statute?
  • Any dwelling or any residential property
  • Single family (1-4 units) and multifamily (5 or more units)
  • Federally-related is not a limitation

 

When does the law apply?

  • Effective on enactment: 5/20/09
  • Applies to foreclosures that occur after enactment
  • Pending foreclosures are covered; test is whether title has passed: Is there a successor in interest with full title?

 

When can an effective notice to vacate be given?

  • Must be given by the successor in interest; so
  • effective notice cannot be given before there is a
  • successor in interest, i.e. any point before title passes
  • Notices of the initiation of the foreclosure action are
  • required in some states and desirable in all cases, but
  • they do not serve as a “notice to vacate”
  • When there is a lease, can be given 90 days before
  • the end of the lease term

 

Does the tenant have to pay rent?

  • Yes, if the successor in interest will not take
  • the payment or cannot be found, rent should
  • be escrowed
  • Failure to pay rent may constitute an
  • independent ground for eviction

 

What responsibilities does the successor in interest have to maintain the property?

  • The successor in interest has the
  • responsibilities of the landlord as defined in
  • the lease or applicable law

 

Will HUD be issuing any guidance on the section 8 provisions?

  • The provisions are self-implementing and
  • effective immediately; HUD does not have to
  • issue regulations to implement the provisions
  • HUD is reviewing the Act and will be providing
  • information for section 8 administrators soon

 

Is the application of the law affected by the immigration status of a tenant?

  • The Act itself does not condition any of the protections on the immigration status of the tenant

 

What from of notice must be used?

  • Not specified in federal statute
  • Will vary with state and local requirements

 

What is the scope of the preemption of state law?

  • Does not preempt more protective state andlocal provisions
  • Does not preempt evictions based on other causes, such as failure to pay rent