Renter's Rights
New Law Gives Renters Protection During Foreclosure
On May 20th, important protections for tenants living in foreclosed properties were signed into law by President Obama. The renter protection provisions took effect immediately and expire at the end of 2012.
S. 896 contains key renter protections:
- 90-day pre-eviction notice to tenants whose homes have gone into foreclosure.
- The rights of tenants to remain in their homes for the terms of their leases. (However, if the new owner will live in the home, leases can be terminated subject to the 90-day notice.)
- Tenants with Section 8 vouchers able to remain with both their lease and rental assistance payments intact, subject to the rights of the purchaser at foreclosure who wants to occupy the home after 90 days notice.
Currently, in most states, renters get little or no notice to vacate their homes upon their landlords' foreclosures. The new federal law will not preempt state laws that provide a greater level of renter protections at foreclosure.
Renter’s Rights Information for Renters Impacted by Foreclosure
What to do when your landlord is foreclosed on:
- Ask your landlord to allow you to end the lease early and move out.
- Give reasonable notice.
- Give your landlord contact information so he/she can send you your security deposit.
- Make sure you put any agreements in writing so you can consult the documents later
if any misunderstandings arise.
- As a tenant, you are required to comply with the lease agreement until it ends or has
been lawfully terminated. However, the foreclosure process may impact your rights
as a tenant. Therefore, if you have received a notice that your landlord is facing a
foreclosure of the property you are renting, immediately contact a Legal Assistance provider or a
private attorney who handles landlord/tenant matters-
When to contact a Virginia--based Legal Assistance provider:
- If you receive court papers or are concerned about your legal rights.
- If you have a complaint about your landlord or need advice about recovering a security
deposit.
- If you have questions about the rights and obligations of landlords and tenants
You can find Legal Assistance providers listed at
http://www.virginiaforeclosureprevention.com/legal.asp
After Foreclosure
- If you have to move before your lease expires, you may be able to sue your
landlord for monetary damages. However, this can be costly, time consuming, and
it may be difficult to collect money from a landlord who is in foreclosure.
- Once you move out of the home you can try to recover your security deposit if your landlord does not return it. Again, it may be difficult to collect the
money from a landlord who was foreclosed on.
- If the bank or new owners contact you directly, negotiate with them for a move
out date that suits both your needs and theirs.
- The new owner may also offer you “cash for keys” if you leave the property
voluntarily without going to court.
- Do not pay rent to the new owner unless you have reached a written agreement
concerning your right to remain in the property.
- Even if you cannot reach an agreement with the new property owner, only a court
can order you to vacate the property. The new owner does not have the right to
change your locks or force you to leave without a court order.
- If you do not have an agreement with the new owner, and you do not vacate,
he/she may file a suit called an “Unlawful Detainer,” asking the court to evict
you.
- The new owner may also ask the court to award damages if he/she has lost money
because you have not vacated the property. However, between foreclosure and
court-ordered
eviction, you have the right to remain in the property.
- Use the time between foreclosure and the court order to find new housing and
move.
- The entire process of foreclosure and eviction of the house’s occupants usually
takes 2-3
months.
