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Excalibur Home Management Blog

“Protecting Tenants at Foreclosure” protections are back!

Mike Nelson - Thursday, June 7, 2018


“Protecting Tenants at Foreclosure” protections are back!  And they're permanent!

The Economic Growth, Regulatory Relief, and Consumer Protection Act recently passed by Congress and signed by the President was focused primarily on reducing some of the regulatory burden, this law re-instituted the Protecting Tenants at Foreclosure Act which had otherwise died on 12/31/14.  Below is the section of the Act.  Note that now there is no expiration date.

19 SEC. 304. RESTORATION OF THE PROTECTING TENANTS AT FORECLOSURE ACT OF 2009. 21 (a) REPEAL OF SUNSET PROVISION.—Section 704 of 22 the Protecting Tenants at Foreclosure Act of 2009 (12 23 U.S.C. 5201 note; 12 U.S.C. 5220 note; 42 U.S.C. 1437f 24 note) is repealed. 71 SIL17981 S.L.C. 1 (b) RESTORATION.—Sections 701 through 703 of the 2 Protecting Tenants at Foreclosure Act of 2009, the provisions of law amended or repealed by such sections, and 4 any regulations promulgated pursuant to such sections, as 5 were in effect on December 30, 2014, are restored and 6 revived. 7 (c) EFFECTIVE DATE.—Subsections (a) and (b) shall 8 take effect on the date that is 30 days after the date of 9 enactment of this Act.

As a quick review – if a tenant occupied property is foreclosed upon, and the “buyer” at the foreclosure sale will not make the property their primary residence, then the “buyer” must honor any existing lease until it terminates – or unless the parties negotiate a mutually agreeable termination.  If the lease is running on a month to month basis, the buyer must provide the existing tenant with at least 90 days notice to terminate the lease.  If the “buyer” at the foreclosure sale plans to make the property their primary residence, then the buyer can terminate the tenant’s lease with a 90 day notice and require the tenant to vacate.

If you buy properties at foreclosure auctions, make sure you account for whether or not the current occupant is the owner (mortgagor) or a tenant.  It could impact your plans.


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Excalibur Homes
2855 Marconi Dr, Suite 310
Alpharetta GA 30005
678-825-0500 Fax:(678) 825-1401