[talc5]

Hi there.. can someone please decipher the following amendment that was recently passed as part of the Help Families Save Their Homes Act of 2009?

TITLE VII—Protecting Tenants at Foreclosure Act

SEC. 701. Short title.

This title may be cited as the “Protecting Tenants at Foreclosure Act of 2009”.

SEC. 702. Effect of foreclosure on preexisting tenancy.

(a) In general.—In the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property after the date of enactment of this title, any immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to—

(1) the provision, by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice; and

(2) the rights of any bona fide tenant, as of the date of such notice of foreclosure—

(A) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or

(B) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90 day notice under subsection (1),

Except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer times or other additional protections for tenants.

(b) Bona fide lease or tenancy.—For purposes of this section, a lease or tenancy shall be considered bona fide only if—

(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract 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.

(c) Definition.—For purposes of this section, the term “federally-related mortgage loan” has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).

This is from the following link of S.896 Public Law No. 111-22
<enum>I</enum><header display-inline="yes-display-inline">Prevention of Mortgage Foreclosures</header> <section commented="no" display-inline="no-display-inline" id="HA9A13E87B3234F1A9980A2302441466D" section-type="subsequent-section"><enum>101.</enu

I think this will give my family at least 90 days to vacate once we receive official paperwork from the mortgage company. :D

Thanks.

[Fr_Chuck]

Once it is officially foreclosed yes that gives you 90 days.

But if your landlord still owns the property, this does not effect them, since it is not "foreclosed yet"

[AK lawyer]

I think this will give my family at least 90 days to vacate once we receive official paperwork from the mortage company. :D

That's the gist of it allright.

I don't know if it would be the mortgage company or sombody else who would be the "immediate successor in interest in such property pursuant to the foreclosure", but that entity has to give you a 90 day notice which would look something like this:

Greetings: We have acquired the property in a foreclosure proceedings. You are hereby notified that you have 90 days to get out of the premises. ...

[ScottGem]

There are actually two thing going on here. First, the law requires the successor to honor any current lease unless they plan on occupying the property. So if a bank takes over the property and the tenant has a lease that doesn't expire for 6 months, they have to honor the lease. If there is no current lease, or if the property is sold to someone who will occupy it, then the tenant has no less than 90 days to vacate.