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New law: Protection for tenants in foreclosed properties

Posted by: VHFA on 5/28/2009

Last week President Obama signed into law the Helping Families Save Their Homes Act.

The new law, which became effective May 20, provides protections for tenants living in foreclosed properties.

A White House release pertaining to the law says, "One of the often overlooked problems in the foreclosure crisis has been the eviction of renters in good standing, through no fault of their own, from properties in foreclosure.

"To address the problem of these tenants being forced out of their homes with little or no notice, this legislation will require that in the event of foreclosure, existing leases for renters are honored, except in the case of month-to-month leases or owner occupants foreclosing, in which cases a minimum of 90 days notice will be required."

You can read the law online (PDF) or learn more about it in this press release from the National Low Income Housing Coalition.

(Photo: President Obama signs the Helping Families Save Their Homes Act, East Room, White House, May 20, 2009)