On May 20, 2009 President Obama signed protecting tenants at foreclosure act.
The Act provides significant new protections for tenants in foreclosed properties, including a 90-day notice requirement and the right to remain for the term of the lease in most cases.
Specifically, the PTFA requires that the immediate successor in interest at foreclosure (1) Provide bona fide tenants with 90 days notice prior to eviction, and (2) Allow bona fide tenants with leases entered into prior to the foreclosure sale to occupy the property until the end of the lease term. (The lease can be terminated on 90 days notice if the unit is sold to a purchaser who will occupy the property.) In the case of an owner who is an immediate successor in interest to a property occupied by a tenant with a section 8 voucher, the owner takes the property subject to both the section 8 lease and the housing assistance payment contract, except in the case where the owner will occupy the unit as a primary residence.