Comments on: Tenant rights in NYC during a foreclosure?

By: azrealestate09

azrealestate09 — Thu, 29 Oct 2009 07:47:59 +0000

While I am not in NYC.. I cant imagine ANY CITY..IN ANY STATE.. being able to override FEDERAL LAWS…. The FEDERAL LAWS state they can stay for a min of 90 days and up to the end of their lease…. after foreclosure…
Under the new foreclosure prevention bill President Barack Obama signed into law on May 20, renters scored a big victory against foreclosure evictions.
Starting immediately, the Helping Families Save Their Homes Act allows tenants who pay their rent on time to remain in their foreclosed rentals through the end of their lease, unless the bank sells the property to someone who intends to make it their own residence, according to the Associated Press. If the home is sold to an investor or back to the lender, the new owner will have to allow the tenants to stay in the property for the full duration of the lease. If it is sold to someone that wants to use it as their residence, they HAVE to give the renter AT LEAST 90 day notice.
Renters with no lease will be allowed to stay in their homes for 90 days after the foreclosure. The law is scheduled to expire in 2012. Before the new law, renters had little recourse because existing leases are terminated in a foreclosure sale. Now foreclosure buyers need to give the occupants a 90-day notice to leave. Tenants with a month-to-month lease are also entitled to a 90-day notice.
Good Luck!
References :
FEDERAL LAW
LIC RE AGENT

By: sassy25

sassy25 — Thu, 29 Oct 2009 07:34:59 +0000

All the rules and laws are great but they do not work in the real world.NYC is a tough rental environment. Tell your sister to start looking now while she has about 12 weeks breathing time.
By the time the lender sends her a letter the deadline will be 30 days
You cannot find a closet to rent in NYC in 30 days.
References :

By: tim williams

tim williams — Thu, 29 Oct 2009 07:04:59 +0000

They do not have to leave as long as they are current on the rent. once the foreclosure is completed the new owner is required by FEDERAL LAW to give tenants at least 90 days notice to vacate and in some cases they are required to honor existing lease. Good luck, hope everything works out for your sister.
References :
http://www.rentalforeclosure.com

By: chatsplas

chatsplas — Thu, 29 Oct 2009 06:39:59 +0000

During foreclosure, your sister has a valid and binding lease and needs to pay rent to the LL. At the very end of foreclosure, the property is taken from the LL and the lease is voided. Tenants will be given some notice, and may be entitled to "key" money upon moving out.

Check out your state law on foreclosure and protections for tenants. Many states have new laws permitting tenants to remain after foreclosure.
References :
real estate investor