Tips for Tenants in Foreclosed Properties

To think that foreclosure can only affect homeowners is a misconception. Renters can be and are affected by foreclosures, too. This happens when owners of rental buildings fail to get enough rent to cover their costs. It could be because the number of rentals in their building has decreased or because renters in the building have fallen on hard times, too, and they can’t make the rent. Either way, property owners are forced into foreclosure, which puts renters in jeopardy, too.

Congress passed the Protecting Tenants at Foreclosure Act of 2009 (PTFA), during the height of the Great Recession. It was part of the Helping Families Save Their Homes Act of 2009. The PTFA expired effective December 31, 2014.

State laws regarding tenant protections vary. See the U.S. Department of Housing and Urban Development's site to read your state's tenant laws, rights, and protections.

The best thing for you to do if the property you reside in has been foreclosed on is to consult a foreclosure specialist, who can explain all your options and advise you on the best course of action for your particular situation.