New National Protections for Renters in Foreclosed Properties - May 27, 2009

President Obama signed S. 896 on May 20, 2009. This bill includes a nationwide 90 day preeviction notice requirement for tenants in foreclosed properties. The provisions of the bill are effective on enactment, May 20, 2009.

Specifically, the new law will require that the immediate successor in interest at foreclosure

• provide bona fide tenants with 90 days notice prior to eviction and
• allow bona fide tenants with leases to occupy the property until the end of the lease term except the lease can be terminated on 90 days notice if the unit is sold to a purchaser who will occupy the property.

Please click here to read the memo from the NLIHC on S. 896.