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Protecting Tenants at Foreclosure (PTAF)

A new law is in effect which has been designed to protect a tenant’s rights under foreclosure.

The immediate successor owner of any foreclosed rental property is responsible for complying with the law, as outlined below:

If lease is in its initial lease term, the tenant has the right to remain in the unit. The lease cannot be terminated by the new owner/Landlord until the end of the initial lease term. The tenant should be given a 90 day notice of termination prior to the expiration of the lease. However, the tenant can be evicted at any time for their failure to pay rent or other violations of the lease specified as “good cause” in the lease terms. (The new owner’s desire to have the property empty in order to sell is not considered good cause – and therefore, would not be a legal reason to terminate the lease during its initial term.)

*One exception would be if the new property owner desires to use the unit as their primary residence. In this situation, the new owner/Landlord can give the tenant a 90 day notice to vacate at any time.

If the lease ends in less than 90 days, the new owner/Landlord cannot end the lease without giving the tenant a minimum of 90 days notice.

A revised Housing Assistance Payments (HAP) Contract will be published by HUD to reflect these changes. All existing HAP Contracts are automatically amended by the Law.