jody kriss report

New Law Protects Tenants in Foreclosure Properties

Foreclosure

The annals of real estate are replete with stories about people renting homes, and paying their lease responsibly. Then they receive a notice that they being thrown out on the street because a landlord has been keeping the rent money and not paying their mortgage. However, under a new law, that foreclosure cannot be a surprise to the family of tenants because property managers and landlords must now disclose in writing, any notices of default recorded against a property.

 

New law

Supporters of the bill believe that this will help tenants make more informed decisions about where to live and how long to live there. Of course opponents of the legislation say that these disclosures will actually hasten foreclosure since tenants will likely steer clear of properties with a default history.

Some of the most proactive renters’ rights laws and regulations in the country, so this new bill likely comes as little surprise to those already living on the west coast. Landlords already must take existing tenants with the purchases of new property, and most tenants have the right to carry out their leases even if the property changes hands or have 90 days (or more) in which to vacate.

Foreclosure Disclosure

The entire written disclosure must be written in a specific manner, as follows:

“The foreclosure process has begun on this property, and this property may be sold at foreclosure. If you rent this property, and a foreclosure sale occurs, the sale may affect your right to continue to live in this property in the future. Your tenancy may continue after the sale. The new owner must honor the lease unless the new owner will occupy the property as a primary residence, or in other limited circumstances. Also, in some cases and in some cities with a ‘just cause for eviction’ law, you may not have to move at all. In order for the new owner to evict you, the new owner must provide you with at least 90 days’ written eviction notice in most cases.”