Law protects tenants at forclosure Published Aug. 4, 2010 By Bobby Moore 81st Training Wing legal office KEESLER AIR FORCE BASE, Miss. -- Congress recently enacted legislation aimed at protecting millions who lease or rent properties. "Protecting Tenants at Foreclosure Act" is part of the, "Helping Families Save Their Homes Act of 2009" signed into law by President Obama. The act aims to protect tenants from suddenly being left out in the cold when their landlords are foreclosed upon. The act allows bona fide tenants who had active leases prior to the foreclosure proceedings to remain in their rental properties until the term of their lease ends. The legislation provides that a lease or tenancy shall be considered bona fide if: the mortgagor or a relative/ dependent is not the tenant; the lease or tenancy was the result of an arms-length transaction; and the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit's rent is reduced or subsidized due to a federal, state or local subsidy. There is an exception, however, when the entity foreclosing on the property finds a buyer who will make the property their permanent place of residency. At that point, the entity or person may terminate the lease so long as the tenant receives 90 days notice to vacate by the property owner. The act provides virtually the same protection for Section 8 renters who are subsidized by the federal government. Proponents of the legislation say it's vital for renters to have this protection in times where foreclosures are at an all-time high, and many properties being foreclosed upon are rental properties. For more information, call the base legal office, 376-8601.