Landlord and Tenant Rights and Responsibilities Article
WHAT IF I RENT A HOUSE THAT'S IN FORECLOSURE - The Protecting Tenants at Foreclosure Act
The Protecting Tenants at Foreclosure Act
This law expired on December 31, 2014
IMPORTANT PLEASE READ: The Federal Law, Protecting Tenants at Foreclosure Act, expired and is no longer valid as of December 31, 2014. While there were some attempts in the House to revive this law in 2015 none have been successful. Arizona State Law, A.R.S § 33-1331, gives tenants of foreclosed properties some limited protections; information about these protections can be found in this article. This article remains on AZLawHelp.org purely for historical value for those interested in how the Protecting Tenants at Foreclosure Act operated from 2009 through 2014.
There are legal protections for tenants renting a house that is in or goes into foreclosure. The Protecting Tenants at Foreclosure Act (PTFA) was passed by Congress signed into law by the President Obama in 2009; subsequently the law was extended in 2010. The PTFA expired on December 31, 2014. The PTFA, depending on the facts in a particular situation, requires that renters in foreclosed homes be allowed to stay or given sufficient notice under the law.
There are legal protections for tenants renting a house that is in or goes into foreclosure. The Protecting Tenants at Foreclosure Act (PTFA) was passed by Congress signed into law by the President Obama in 2009; subsequently the law was extended in 2010. The PTFA expired on December 31, 2014. The PTFA, depending on the facts in a particular situation, requires that renters in foreclosed homes be allowed to stay or given sufficient notice under the law.
Who qualifies for protection under the PTFA?
The tenant protection provisions apply in the case of any foreclosure on a “federally related mortgage loan” or on any dwelling or residential real property. The tenant must also be “bona fide.” A lease or tenancy is “bona fide” only if:
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The mortgagor or a child, spouse, or parent of the mortgagor under the contract is not the tenant;The lease or tenancy was the product of an arm’s-length transaction; andThe lease or tenancy requires the receipt of rent that is not substantially less than fair market rent or the rent is reduced or subsidized due to a federal, state, or local subsidy.In other words the lease must be made with another person and not with oneself and the rent payments must be a fair amount for the property that is not supplemented by the government.When do renters in foreclosed homes get to stay and when do they have to leave?Renters Get to Stay IF:Renters get to stay for the duration of the lease, if all of the following requirements are met:
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There is a valid lease (not the end of the lease term),The lease was signed before receiving notice of foreclosure (whether judicial foreclosure or trustee sale), andThe new owner does not intend to occupy the property as a primary residence.Renters Cannot Stay But Must Be Given Notice IF:In most other situations, the renters will have to leave, once the foreclosure is complete, and upon receiving 90 days notice from the new owner. The common situations where a renter will have to vacate after the foreclosure upon receiving notice are:
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Renters must vacate if there is a valid lease and they had notice of foreclosure before signing the lease; orRenters must vacate if there is a valid lease, and even if there was no notice of foreclosure but the new owner intends to occupy the property as a primary residence; orRenters must vacate if there is no valid lease, including where a lease expires and the renter is paying month-to-month.
Why does the law end December 31, 2014?
The law has what is called a sunset provision, meaning it has an expiration date. The original date was extended in the “Dodd-Frank Wall Street Reform and Consumer Protection Act”, so that the law will be repealed on December 31. 2014. When laws are written, the legislative body writing the law may set a date of when that law will end, referred to as a “sunset” clause or provision (Note: Not all laws have sunset provisions, it is not required). The PTFA is a federal law, Congress would have to authorize and extension or make the law permanent and the President would have to sign it into law.Source: See 12 U.S.C. 5220 or search the US Code online with the US House of Representatives website. For additional information see the Consumer Financial Protection Bureau website.
Comments:QUESTIONS
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When entering my apartment, does the landlord/mgr have to specify a date when they will enter or can they just say they will be in the week of, and come in anytime that week or month? I have a service dog and do not want anyone entering without my presence, but I cannot always be home 24/7 as they dont specify a date, which makes no sense to me as they could just say they are coming in sometime in 2018?? Please advise asap as they have not even given me a notice much less date and expect to come in within 3 days.
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Hello, I recently moved out on Aug 26 2016 of a rental property managed by a property management company. On the 14th business day I was sent an estimated security deposit itemized list. When am I supposed to get the final one? Owner of house doing a complete remodel and could be months before she's done. Am I supposed to wait that long to hear back? Also, what is the lifetime of a carpet? Their trying to charge me for cleaning when carpet is 20 years old and we lived there for 5 years.
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must a landlord provide a notice to vacate to a tenant in "writing", or can it be verbal?
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I found mold in my bathroom ceiling, as well as a few other places, so I scheduled a mold professional to come out and the property owner or landlord won't let us they are trying to have maintenance come determine and fix the issue, I need to know my rights and if I need an attorney or not because mine and my 9 month old son have had skin reactions and health issues include him wheezing and difficulty breathing, he's been congested since we moved in.
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Am I required by law to give a formal 5 or 10 day notice for repairs for lack of hot water to terminate our lease if no reasonable effort was made within 5 days to fix the issue or was our initial maintenance request sufficient notice of the problem?
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Can a house built for a mother in law be rented by someone from another family
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I read in the A.R.S. §§ 33-1322 –1324, which specifies: A landlord is required to do the following: Supply running water and reasonable amounts of hot water. Questions: Must I, as a Landlord, have to pay my tenants gas bill for hot water? What does "reasonable amounts of hot water" mean specifically? The water heater is in good condition and does not repairs. P.S., I already pay their monthly water that comes from the city.
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I signed a year lease starting in 2-1-12. In December of 2012. The landlord asked if I would like a new lease. I verbally agreed to 6 months. He said he would email me the new lease. He hasn't yet and I am second guessing staying. My lease is over at the end of Feb. Can I still give 30 days if no new lease has been signed yet?
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Is a landlord legally required to provide external doors for apartment entrances, or can they use hollow interior doors instead of exterior doors? My apartment had a hollow door for my apartment entrance that got damaged and the property management is making me pay for the new solid, exterior door to replace the hollow interior door used incorrectly as an exterior facing door. I learned that my apartment was not the only one on the property with an interior door used as an exterior door and would like to know how legal that is.
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