Federal and State Protections for Tenants Living in Properties That Have Been Foreclosed On
2010 federal and state legislation gives tenants living in properties that have been foreclosed upon some additional protections during the eviction process -- including the requirement that an eviction of a bona fide tenant only be for "just cause" unless certain specified conditions are met.
A Bill to Stabilize Neighborhoods -- This Massachusetts bill, chapter 258, was signed into law on August 7, 2010. A link to the bill is here. The bill adds a new chapter 186A to the General Laws and allows most tenants in foreclosed rental properties who pay rent and comply with tenancy obligations to remain in their homes until there is a binding purchase and sale agreement.
Protecting Tenants at Foreclosure Act of 2009 (PTFA) and "Protecting Tenants at Foreclosure Extension and Clarification (2010) -- These federal bills require bona fide tenants in foreclosed properties to be given at least 90 days notice to vacate, and also gives most tenants with pre-existing leases the right to remain in the property during the term of the lease.
Additional general materials about these laws are as follows:
- Summary of tenant protections in the Massachusetts law (including text of the ammendment to chapter 186A) (prepared by MLRI)
- Pamphlet for tenants -- Tenants Have New Rights After Foreclosure (MLRI) (also, see this MassLegalHelp link for information about how to customize the pamplet with your organization's name and contact information)
- Letter to Housing Courts summarizing key protections in the state and federal legislation (prepared by MLRI)
- Letter to Massachusetts District Courts summarizing key protections in the state and federal legislation (prepared by MLRI)
- August 11, 2010 Memo from Chief Justice of Massachusetts District Courts, informing the courts of new protections against eviction of residential tenants from foreclosed properties (Lynda Connolly, Chief Justice)
- August 26, 2010 Memo from Chief Justice of Massachusetts District Courts, reminding the courts about federal protections for residential tenants in foreclosed properties (Lynda Connolly, Chief Justice)
- Powerpoint presentation about the Massachusetts law (prepared by MLRI, updated Dec. 2010)
- Powerpoint presentation emphasizing the effect of post-foreclosure eviction laws on section 8 tenants
- Table describing and comparing G.L. c. 186A, G.L. c. 186 secs 13 and 13A, and the federal Protecting Tenants at Foreclosure Act of 2009 (PTFA) (prepared by MLRI)
- YouTube video of an ABCD-Boston training on the 2010 Post-Foreclosure Just Cause Eviction law
- Massachusetts Law About Tenants in Foreclosed Buildings (Mass. Law Library link)
- HUD Notices and Guidance on Protecting Tenants at Foreclosure: March 15, 2012, Oct. 28, 2010, and June 24, 2009
Note: The PTFA expired 12/31/14 but on 5/24/18 it was reauthorized and permanently extended.