Protecting the rights of tenants in foreclosed properties is an issue that's become prevelant in today's real estate. This could impact renters in homes that are currently in the process of foreclosure or homes which have already been taken back (foreclosed on) by the lender.
There are many times that honest tenants have been bamboozled (obviously been mislead) by owners of residential properties that have been in foreclosure and/or on the verge of the lender/bank taking the home back. Meaning they may even have recently rented a property, signed a lease for a period of time, paid their rent/lease payments only to find mortgage holder came knocking at the door!
And if that’s the case, what’s a tenant to do? Take a quick look at this 2-Minute Real Estate Video to learn more about tenants rights and the Federal Law more commonly known Title VII Protecting Tenants Rights AT Foreclosed ACT.
1. the mortgagor or the child, spouse, or parent of the mortgagor under the contras is not the tenant:
2. the lease or tenancy was the result of an arms-length transaction: and
3. the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit's rent is reduced or subsidized due to a Federal, State or Local subsidy.
Please keep in mind this is a Federal law and there are some exclusions! CHECK WITH THE PROPER PROFESSIONAL for additionals laws in your state!
When you're looking for knowledgeable competent real estate help, contact me, Lynda@PreferredHomeBrokers.com, I'm the Broker & Owner of Preferrred Home Brokers and have been for decades. You can also reach me direct or text (714) 595-1494, and you can work with me or any of the great Preferred REALTORS®.
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