Highlights: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.
- FDIC examiners will monitor and enforce compliance with the requirements of this law in the same manner as other consumer protection laws and regulations.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Compliance Officer
Chief Lending Officer
Loan Servicing/Loss Mitigation Department
Related Topics:
Section 8(o)(7) of the United States Housing Act of 1937
Attachment:
Protecting Tenants at Foreclosure Act (Public Law 111-22, Division A, Title VII) – PDF (PDF Help)
Contacts:
Samuel Frumkin, Senior Policy Analyst, at (202) 898-6602 or sfrumkin@fdic.gov; or
Jeanne Rentezelas, Counsel, at (202) 898-6786 or jrentezelas@fdic.gov
Printable Format:
FIL-56-2009 – PDF (PDF Help)
Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC’s Web site at www.fdic.gov/news/news/financial/2009/index.html
To receive FILs electronically, visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained via the FDIC’s Public Information Center (1-877-275-3342 or 703-562-2200). .
