Renters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
In plain words
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Who is protected
Bona fide tenants in a home or unit sold at foreclosure.
When it applies
- Only once a sale date is set or after the foreclosure sale.
- Only if you rent the home.
- Your lease is "bona fide" only if you are not the owner or the owner's spouse, child or parent, it was an arm's-length deal, and the rent is not far below market (unless subsidized).
What you can do
Keep your lease and rent records
Keep your lease, rent receipts and any notice you receive. Write down the date you got the notice to vacate and count 90 days.
Deadline: You get at least 90 days from the notice to vacate.
Open the toolPrepare for an eviction hearing
If you are sued for eviction too early, tell the court about the PTFA and bring your lease and the notice.
Open the tool
Honest limits
- It does not apply if you are the former owner, or a close family member of the owner, or if the lease is not bona fide.
- You must still follow the lease and pay rent to the new owner. State or local law may give you even more protection.
- This is general legal information, not legal advice, and it does not promise any result. A HUD-approved housing counselor or a lawyer can look at your facts.
The law
- Federal lawProtecting Tenants at Foreclosure Act
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
Exact part: (Pub. L. 111-22, div. A, § 702(a)–(b))
What it says: The successor after foreclosure takes the property subject to a 90-day notice to vacate and the rights of bona fide tenants under their leases.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5220&num=0&edition=prelim - Federal lawPTFA restored permanently (2018)
42 U.S.C. § 1437f note(Pub. L. 115-174, § 304)
Exact part: (Pub. L. 115-174, § 304)
What it says: Congress repealed the PTFA's sunset and restored it, effective 30 days after May 24, 2018.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f&num=0&edition=prelim
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
The right to real notice before the government takes or sells your home
U.S. Const. amend. XIV, § 1Due Process Clause
Before a state or county sells your property — for example at a tax sale, or through a court foreclosure — the Constitution requires notice that is reasonably likely to actually reach you. If the government knows your address, publishing a notice in the newspaper is not enough. If a mailed notice comes back unclaimed, the government must take extra reasonable steps to reach you, if it practicably can.
Read this rightThe right to be heard in court, and to speak for yourself
U.S. Const. amend. XIV, § 1Due Process Clause
Due process means that before the government, through a court, takes your property, you must get a meaningful chance to be heard. In federal court, you have a legal right to present your own case without a lawyer. Most state courts also let people represent themselves, under state rules.
Read this rightTenants get 90 days’ notice, or the rest of their lease, after a foreclosure
Cal. Code Civ. Proc. § 1161b(a)–(b)
If you rent a home in California that is sold in foreclosure, the new owner generally must give you a 90-day written notice to quit. If you have a fixed-term lease signed before the sale, you can usually stay until the lease ends. Some exceptions apply, such as when the new owner will live there.
Read this rightTenants can be evicted after foreclosure only for just cause
Mass. Gen. Laws ch. 186A, § 2
If you rent a home in Massachusetts and a bank or other foreclosing owner takes it, that owner cannot evict you without just cause, such as not paying rent. The exception is when a real buyer has signed a purchase agreement for the property.
Read this rightTenants can stay at least 90 days after a foreclosure
N.Y. Real Prop. Acts. Law § 1305(2)
If you rent a home that goes through foreclosure, the new owner generally must let you stay for the greater of 90 days after a notice, or the rest of your lease. You keep the same lease terms during that time.
Read this rightRenters get 30 days’ notice after a foreclosure sale
Tex. Prop. Code § 24.005(b)
If the building you rent is sold at a trustee’s or tax foreclosure sale, and you pay rent on time and are not otherwise in default, the buyer must give you at least 30 days’ written notice to vacate if it chooses not to keep your lease. Federal law (the Protecting Tenants at Foreclosure Act) can give you longer.
Read this right