Is this statement true?

•Under new Federal law, tenants have the right to stay until the end of their lease or 90 days from the date of a foreclosure, whichever period is longer, in which to move. You still pay rent for this period but this means you do not have to immediately vacate. "A new federal statute, enacted in May 2009 as a part of the Helping Families Save Their Homes Act, gives certain qualified tenants the federal right to stay in their homes following a completed foreclosure sale. This new right is generally the opposite of prior law, in which tenants’ and occupants’ rights were terminated along with all other junior liens or claims to the property once the foreclosure sale was complete. The new law provides that the buyer at the foreclosure sale of residential property takes title subject to certain new rights of qualified tenants. To qualify for protection under this new federal law, the tenant must meet three separate tests: (1) be someone who is not the mortgagor or an immediate family member of the mortgagor; (2) have a lease that was the result of an arms-length transaction; and (3) the lease requires rent that is basically fair market for the property. Exceptions exist if the new owner will occupy the foreclosed property as the new owner’s primary residence and has given the tenant 90 days advance notice that the lease will be terminated. Under the new law, protected tenants must be given 90-day notice to vacate by the new owner. In addition, existing leases must be honored to the end of the remaining term of the lease, with certain exceptions. Qualified tenants without written leases or with leases that can be terminated at will under state laws are also entitled to a 90-day notice to vacate." I believe what you received was effective in starting your 90 day period to run. An open question is the timing of your notice. Were you served before the actual foreclosure sale date. I believe the 90 days would commence on the sales date. If you were served after the 90 days, you could argue that you deserve 90 days from the date of notice to be allowed the full privilege of the new law.... Is this statement true?

4 weeks ago - 3 answers