Miami real estate news and information

Federal Policy on Foreclosure: Tenants Protected from Eviction

Foreclosure is a hot topic these days, and protecting tenants is a subject of conversation.   “Helping Families Save Their Homes Act of 2009”  is a Federal Policy  protecting  tenants from eviction  if their rental property goes into foreclosure.  Landlords rightfully want to ensure  that their  tenants are financially solvent, before entering into a lease agreement with them.  In Miami,  it is common for a landlord to  require a month (or two) security deposit.  A  run a credit and background check is likely also done for a perspective tenant prior to the landlord signing a lease.  With foreclosure rampant, tenants  need protections too.  With the “Helping Families Sve Their Homes Act of 2009, Tenants may  now STAY in a foreclosed property through the end of their lease unless:

1) The new owner wants to occupy the property as a personal residence,  or 2) They have either a month-to-month lease, or a non-written lease.foreclosure-notice

Regardless, the tenant must be given 90-days notice before they can be evicted,  and that notification must come from either the bank or the new owner.

These protections apply  to  “bona fide”  tenants,  who have written contracts  that are “not substantially below fair market value”.   If the tenant  violates any terms of the lease,  their protection from eviction under the “Helping Families Save Their Homes Act of 2009”  ceases, and the tenant  CAN be evicted.   

In order to reduce the impact of  foreclosure on our communities,  this non-eviction provision of   S.896  will continue through December 31, 2012 … and is backed by the  National Association of Realtors (NAR).

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