The foreclosure process for many houses is dragging down to a slow crawl. Lenders are buried, short sales could be in the works, and the free-loading homeowners have no incentive to cooperate.
But once the lenders finally complete the trustee sale, they’re not done.
They have to get the occupants to leave.
Tenants now get 90 days to vacate – from B of A’s Tenant Assistance Flyer:
The “Protecting Tenants at Foreclosure Act of 2009” took effect May 19, 2009 and applies to properties with a foreclosure date of May 20, 2009 or after. This new bill requires 90 days notice to vacate or notice to quit, depending on the state guideline requirements for tenant occupied properties. Should the tenants produce a bona fide lease, then the terms of the lease will be honored. A bona fide lease must be at arms length, the tenant cannot be the prior mortgagor, spouse or child of the mortgagor, the lease must have been executed before the notice of foreclosure, and the lease must be fair market rent for the area.
Doesn’t that sound like they just got into the landlord/property management business? Not only will tenants get an automatic 90 days to vacate, if they have a lease that goes longer, it sounds like they can stay, as agreed.