Federal Law Protects Renters During Foreclosure (NAPSA)—Thereis good news for renters. A new federal law may provide them with more security and peace of mind when their landlords fail to pay their mortgage. As the numberof foreclosures has increased across the country, some renters in good standing have received a nasty surprise— immediate eviction—when the houses, apartments or condos they rented went into foreclosure. Fortunately, a new federal law helps protect the rights of tenants in properties facing foreclosure, below-market rent can weaken a renter’s legal standing during a foreclosure. Comptroller of the Currency *The rent is not substantially less than the fair marketprice. The rent is not sharply reduced because of a government say experts at the Office of the (OCC). The Protecting Tenants at Foreclosure Act of 2009 establishes national standards to provide renters sufficient notice when foreclosure happens. The new national standard pro- vides uniform protection to renters who are vulnerable to sudden eviction. The new law states: eIn all cases, renters will get at least a 90-day notice prior to eviction. eRenters can stay until their lease runs out except when the new owner will occupy the home as a primary residence, when renters have no lease or when renters have only a month-tomonth lease. Even for these three exceptions, the 90-day noticestill applies. The new law applies only to a “bonafide” lease or tenancy. Bona fide means: The tenant is not the landlord or a child, spouse or parent of the former owner. *The lease or tenancy is the product of an “arm’s length transaction” with no conflict of interest. subsidy (tenants in Section 8 subsidized housing have separate protections underthis law). OCC experts advise renters to always be aware of their rights, and protect these rights by making sure they stay in good standing with regard to their rental property. Sometips on how to prove you are in good standing include: Sign a written lease. Pay your rent on time and in full. *Use checks rather than cash to provide a record of payment. Pay your rent at the market rate. Paying a lower rent to a friend or family member will cut your costs, but may weaken your legal standing during a foreclosure or legal dispute. eWith all legal matters, the OCC encourages you to consult a lawyer. To learn more about foreclo- sures and banks in general, go to www.HelpWithMyBank.gov.
