Protecting Tenants At Foreclosure Act of 2009
This may come as old news for some of your but it's my understanding that a lot of tenants are still not aware of this Act.
It's no news that the foreclosure crises has become a huge problem for tenants who are now facing the possibility of having to suddenly pack and find another place to live. Investors have let their properties go and, often times, tenants don't even know that the property is facing foreclosure because their landlord didn't bother to tell them so. So when they least expect, there's a sheriff knocking on their door saying "get packing...need to go". Can you imagine?
Do you know that most mortgage servicers and banks will honor a lease agreement as long as the tenant can document their rent payments?
Here's one important note. The Federal Protecting Tenants At Foreclosure Act of 2009 says that all the banks are mandated to do is to give the tenant 90 days to vacate the property. Beyond that it's up to the bank.
Now, about the validation of the lease agreement. If you are a tenant and want to make sure the bank accepts your lease agreement, it is a good idea to save your canceled checks to show proof of payment. That way there will be no question on the validation of the agreement.
If you or one of your clients is in the process of getting evicted, make sure to "get your ducks in a roll.
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