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Tenants in Foreclosure

It is the nightmare of every tenant.  You pay rent, don’t cause any trouble, and suddenly you learn that the property you live in is going through a foreclosure.  Worse yet, some tenants do not become aware of the foreclosure until after it is completed and the new owner expects them to vacate the property.  The question becomes, how fast must a tenant relocate?

From 2009 through 2014 a Federal law was in place to provide tenants with strict protections.  The law was referred to as the Protecting Tenants at Foreclosure Act (PTFA).  Under PTFA, the person or entity taking title to the property was required to provide a tenant with at least ninety days notice prior to seeking the removal of the tenant.  In some cases, the tenant would be allowed to complete the term of the lease even if that meant living in the property for more than ninety days.  PTFA was a great tool in that it provided tenants with adequate time to find a new residence rather than being removed with only twenty-four hours notice.
PTFA was not renewed for 2015 which resulted in many tenants being left in a state of flux.  Although some lenders still gave tenants the ninety day notice, others did not.  Fortunately, Governor Rick Scott recently signed a bill passed by the 2015 Florida Legislature (HB 779) which provides that tenants must receive thirty days notice prior to a lease being terminated.  Although HB 779 provides less protection than PTFA, it is a welcome measure that still gives occupants substantially more time than would otherwise be available.
If you are a tenant going through a foreclosure I encourage you to call our office at 386.257.1222 for a consultation regarding your rights.  
Posted July 2, 2015