Foreclosure Protections for Tenants

The Protecting Tenants at Foreclosure Act (PTFA) is a federal law that provides protections for tenants living in properties that are foreclosed upon. Under the PTFA, tenants have the right to remain in the property until the end of their lease term, even if the property is sold to a new owner through foreclosure. If the new owner wants to occupy the property as their primary residence, they must provide the tenant with a 90-day notice to vacate. Month-to-month tenants are also entitled to a 90-day notice to vacate. The PTFA applies to all foreclosures on residential properties, regardless of whether the tenant has a written lease or is current on rent payments. Some states have additional foreclosure protections for tenants, such as the right to receive notice of the foreclosure sale or the right to sue the former landlord for damages.