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In May of 2009, the federal government passed the Protecting Tenants at Foreclosure Act. This Act provides renters with rights when their landlords lose the property they are currently renting to foreclosure. Prior to the PTFA, renters were often forced out of their homes with little notice. Unfortunately, the law does not always permit a renter to enjoy all the terms of the lease that he was previously entitled to.

The Protecting Tenants at Foreclosure Act of 2009

Under the PTFA, all renters have the right to remain residents of their current home until the end of the original lease. Although the new owner of the property is under no obligation to renew the lease, this gives individuals the opportunity to find other housing with the knowledge that they cannot remain in their current location.

One exception to the PTFA is if the buyer of the foreclosure intends to occupy the premises himself. Should this occur, the new owner of the home is required to give his tenants 90 days notice of the termination of the lease.

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