Protecting Tenants at
Foreclosure Act of 2009
[To protect the interests of bona fide tenants in the case of any foreclosure on any dwelling or residential real property, or for other purpose.] -May, 2009... to expire in 2012.
--- Provisions basically protect tenants from being thrown out without notice, or with too little notice. Tenants have at least 90 days notice to move, and have to be formally notified.
If new owner of foreclosed property is an investor, tenants can stay (after property changes hands) until lease expires. If new owner bought as their primary residence and will be living there themselves, the 90 day rule applies.
TENANTS: HOW DO YOU AVOID THE FORECLOSURE MESS?
Before signing a lease, check county/court records to make sure no current foreclosure proceeding has been filed. Use an EXPERIENCED Realtor, and either go to the listing Agent directly - or have your Realtor ask the right questions. Ask about the Owner/Landlord. Find out their situation as best you can. Alot can be learned up front to give you a good indication of the stability of the situation with the property.
*But keep in mind, with the current backlog of foreclosure activity with banks and our court system... it can sometimes be 5+ months before the bank files the actual paperwork and it's visible for a tenant to find. And even the listing agent won't always know the situation with the owner, and situations can always change in a year.
Florida law does currently require lenders to name and notify tenants in a foreclosure lawsuit. Most often, someone will go to the property and hand deliver court papers to the current tenants explaining that the house is in foreclosure.
At that point, don't panic... but start looking for another rental. And there are PLENTY of great deals out there!
But keep in mind... tenants are STILL obligated to continue paying rent. Until the house goes through foreclosure and the bank becomes the sole owner of the property... tenants must still pay the owner rent as per their existing lease.