Foreclosure and Renters Rights

PHOENIX - Do you live in a property that's foreclosed? Do you know your rights?

Arizona Attorney General Terry Goddard is reminding homeowners and tenants of the laws regarding foreclosures.

Last May, Congress passed the Protecting Tenants at Foreclosure Act to protect renters that were forced to immediately vacate their home after it was placed in foreclosure. The law remains in effect until Dec. 31, 2012.

Under the Protecting Tenants at Foreclosure Act:
-- All tenants must receive a 90-day notice before being evicted as the result of a foreclosure.
-- With some exceptions, the law requires that in the event of foreclosure, existing leases for renters are honored to the end of the term of their lease.
-- The stated exceptions are for tenants without a lease, tenants with a lease terminable at will under state law, or where the owner acquiring the property will occupy it as a primary residence. In these cases, the tenants must receive a minimum of 90 days notice to vacate the property.
-- This law does not affect the requirements of any state or local law that provides longer time periods or other additional protections for tenants.
--The new law does not require any agency to issue implementing regulations; these protections apply to foreclosures after May 20, 2009.
-- Although no federal or state agency is specifically charged with enforcing the Protecting Tenants at Foreclosure Act, if a landlord tries to evict a renter without following the law, the renter may be able to raise that as a defense in eviction proceedings.

For more information:
http://thomas.loc.gov/
http://www.azsos.gov
http://www.azag.gov/consumer/foreclosure/