Do Tenants Have Rights When Their Rental is being Foreclosed Upon?

Real Estate Agent with JohnHart Real Estate CAL BRE 01461940


Education is key in this real estate market for distressed homeowners and tenants who are renting a home that is going through a foreclosure. Not only is it a very stressful time for the distressed homeowner now other families are being affected, their tenants. Tenants find themselves confused and unsure of where to find answers with this unique situation. They are left wondering what their rights as a tenant are. The Helping Families Save Their Homes Act of 2009 signed into law on Wednesday, May 20th, 2009 (Pub. L. 111-22) provides a 90-day  notice requirement and additional protections for tenants in foreclosed properties. 

Below you will find the major provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.

 - During the term of the lease, the tenant has a right to remain in the unit and cannot be evicted, except for actions that constitute good cause.

- If the lease ends in less than 90 days, the new owner may not evict the tenant without giving the tenant at a minimum 90 days notice.

- At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.

- The new owner may terminate the tenancy if the owner will occupy the unit as a primary residence, and has provided the tenant a notice to vacate at least 90 days before the effective date of such notice. This is the only exception to the rule that the tenant may not be evicted during the term of the lease.

These provisions expire on December 31, 2012.

Click here to read more provisions outlined under Title VII, Protecting Tenants at Foreclosure Act of 2009.

Here is additional information as of July 2011 go to:


Posted by

Jennifer Ricco | Realtor | Retired Police Officer
JohnHart Real Estate

SCV Women's Council of Realtors Board Member  2016 Treasurer/Secretary
Selling Santa Clarita & Beyond Since 2004!

LA | OC | Ventura

CAL BRE 01461940    

All content posted, unless noted, is the property of Jennifer and may not be used without permission.


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Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant


this is good to know, thank you

Feb 27, 2010 03:45 PM #1
Jennifer Ricco
JohnHart Real Estate - Santa Clarita, CA

Thanks Christine-

I am asked this question in many forums. I think all parties to a short sale/non owner occupied real estate transaction ie; listing agent, homeowner in distress, home buyer, buyer's agent and tenant need to know this critical information.  

Feb 27, 2010 03:50 PM #2

I am sooooo confused, I live in a house with two other roomates, we found a auction notice on the door saying the house was going to auction in two weeks, that the loan was in default since 2008..... the two weeks past and nothing, the owner said hes filing BK and trying to handle it, we all pay every month.....what is goin on? what are we to plan to do? THANKS!!!

Apr 03, 2012 04:40 PM #3
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Jennifer Ricco

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