July 20, 2024


Mad about real estate

Renting A Home In Foreclosure? New Rules May Protect You From Eviction

With the increased numbers of homes falling to foreclosure, there are many non-home owners across the country who are increasingly suffering from anxiety related to their housing; these tenants are the renters of homes in foreclosure.

A number of renters across the nation have been the victims of unscrupulous lenders or real estate agents who see them as a roadblock to a home sale. Due to the lack of communication surrounding the new Protecting Tenants at Foreclosure Act passed last spring which allows most renters to stay in a foreclosed home for a period of time after foreclosure, some renters have been pressured out of homes which they have every right to keep residing in.

The new laws allow a renter with a lease to stay in the home for the duration of the lease when a home is foreclosed on. The renter may be able to renegotiate their lease after the contract runs out, but there is no guarantee. For renters who are renting on a month to month basis, there must be 90 days before they are required to leave the premises.

For renters who have a lease, there is still the problem of when a foreclosed home is sold to a buyer who wants to live in the home as a primary residence instead of renting it out; in this case, even with a lease, the owner may legally present the renters with a 90-day notice to vacate.

These new laws, while actively in effect, are apparently unknown to many renters across the nation. Some of the property management companies who collect rents on these homes may not be all that proficient with the new rules laid out in the Protecting Tenants Act either; some tenants have had their rent checks refused, their leases deemed “illegitimate”, and their lives disrupted.

It just proves the point that many renters need to consider when they feel like their rights might be getting quashed; research your rights and responsibilities so that you’re aware of what is or is not acceptable and legal. It is an even better idea to research renters’ rights before you enter into a rental agreement in the first place as there are a lot of laws regarding these types of contracts that have been around for a long time but that are still often misunderstood by many people.