There is Good News for Renters!
A federal law may provide renters with more security and peace of mind when their landlords fail to pay their mortgage.
Fortunately, a federal law helps protect the rights of tenants in properties facing foreclosure, say experts at the Office of the Comptroller of the Currency (OCC). The Protecting Tenants at Foreclosure Act of 2009 establishes national standards to provide renters sufficient notice when foreclosure happens.
The new national standard provides uniform protection to renters who are vulnerable to sudden eviction. The new law states:
- In all cases, renters will get at least a 90-day notice prior to eviction.
- Renters can stay until their lease runs out except when the new owner will occupy the home as a primary residence, when renters have no lease or when renters have only a month-to-month lease. Even for these three exceptions, the 90-day notice still applies.
- The tenant is not the landlord or a child, spouse or parent of the former owner.
- The lease or tenancy is the product of an “arm’s length transaction” with no conflict of interest.
- The rent is not substantially less than the fair market price.
- The rent is not sharply reduced because of a government subsidy (tenants in Section 8 subsidized housing have separate protections under this law).
Some tips on how to prove you are in good standing include:
- Sign a written lease.
- Pay your rent on time and in full.
- Use checks rather than cash to provide a record of payment.
- Pay your rent at the market rate. Paying a lower rent to a friend or family member will cut your costs, but may weaken your legal standing during a foreclosure or legal dispute.
- With all legal matters, the OCC encourages you to consult a lawyer.
Like Us, Follow Us, Have Fun with Us! | |||||||
Powered by Keller Williams Partners Realty
1307 Aeroplaza Drive
Colorado Springs, Colorado 80916
719-651-0085
summitrealestategroup.com