Facing Eviction? The Law Has Changed - You Can Stay In Your House!

Question: 

We are being evicted even though we have paid the rent to our landlord because our landlord has not paid the loan and the bank foreclosed.  Can we stop the eviction?

Answer:

Fortunately, you are protected from eviction.  The Federal Government has stepped in to help families keep their homes and avoid eviction.  The Helping Families Save Their Homes Act of 2009 signed into law on May 20th, 2009 (Pub. L. 111–22).  The new law provides a 90-day notice requirement and additional protections for tenants in foreclosed properties. It applies in the following example:  You have been renting a house, but the landlord has defaulted on the mortgage - the house is in foreclosure or has been foreclosed and you have received an eviction notice.  WHAT DO YOU NEED TO DO?

STAY CURRENT on the rent, and pay the landlord until you receive a notice from the loan company giving you a new address and payee.  Keep WRITTEN evidence of the delivery of the rent (use a check and send it certified mail).  None of the law's protections apply if you default on the rent.  It does not matter if the property has been foreclosed. 

HOW LONG CAN YOU STAY?  If you have a lease that has not yet expired, and you are current on the rent, you get to finish out the term of the lease, even if the lease has many months, or years, to run.  After the term of the lease, you still get 90 days notice.  The only exception is if the buyer at the foreclosure sale was an individual planning to live in the house instead of a bank or lending company.  Then you get to stay at least 90 AFTER notice.  If you have a lease that will expire in less than 90 days, has expired and you are now month to month, then you get to stay at least 90 days AFTER notice.

WHAT IF YOU ARE THE OWNER AND YOUR BANK IS FORECLOSING YOUR LOAN?  The statutes seems to exclude the homeowner from the 90 day notice if it is the homeowner's loan that is being foreclosed.  However, in some states the rules have also changed.  Moreover, if you tried to modify your loan with the bank and it foreclosed anyway, you may have claims against the bank that will keep you in the house.  Check with a local attorney in your state.

IF YOU ARE BEING FORECLOSED GET ADVICE FROM A LAWYER FAMILIAR WITH THE NEW FEDERAL LOAN MODIFICATION STATUTES AND EVICTION LAWS BEFORE ITS TOO LATE!

 At the end of the term of the lease, the new owner may terminate the tenancy if the new owner provides a 90-day notice.

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