Protecting Tenants at Foreclosure Act of 2009: Terminations after Foreclosure in California

 

The Protecting Tenants at Foreclosure Act of 2009 provides limited eviction relief to some tenants following foreclosure on a federally-related mortgage loan or on any residential property.  To qualify for the added tenant protections under the Protecting Tenants at Foreclosure Act of 2009, the lease or tenancy must be “bona fide,” meaning:

  • The tenant cannot be the borrower on the loan, or related to the borrower as a child, spouse, or parent;
  • The tenancy must be the result of an arms-length transaction;
  • The rent must not be substantially less than the fair market rent for the property.

Tenants may not be able to use the provisions of the Protecting Tenants at Foreclosure Act of 2009 if they are behind in their rent.

The Protecting Tenants at Foreclosure Act of 2009 became effective on May 21, 2009, and  is currently expected to expire on December 31, 2014.  Under the Protecting Tenants at Foreclosure Act of 2009, tenants are entitled to a 90 day notice of eviction after foreclosure for month-to-month tenancies.  Tenants holding possession under a lease have the right to possession until the end of the lease, unless the purchaser will occupy the premises as a primary residence, in which case the 90 day notice period applies.

The Law Office of David Piotrowski represents landlords throughout southern California and can assist with a tenant eviction.

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