Your Jacksonville Bankruptcy Attorney

Jacksonville Bankruptcy Lawyer, Robert L. Peters is excited to give our Jacksonville foreclosure clients some great news.

There is good news for any tenant facing eviction after foreclosure.  The Protecting Tenants at Foreclosure Act of 2009, which became law on May 20, guarantees almost all tenants at least 90 days after receiving notice of foreclosure before they can be evicted from their homes. This applies even to month-to-month leases.  And even better news for some tenants is that they may be able to remain in their homes for the remainder of their lease terms, giving them an opportunity to make alternative housing arrangements.  Of course, this does not bode well for lenders, who may find themselves reluctantly managing rental properties over the next three years.

So if you’re the tenant, how do you know how long you can stay in the house if the bank forecloses?

• If the new owner plans to use the property as a personal residence, you get at least 90 days to vacate.  If you’re living in the property month-to-month, you also get 90 days to vacate.
• If your lease is up next month, guess what? You still get 90 days to vacate.
• If, however, the new owner isn’t going to use the property as a personal residence, you get to stay in the home until your lease expires.

One important point: leases have to be “bona fide” in order for the tenant to qualify for this protection.  If you’re living in the house for a dollar a month because your cousin really likes you (or because he lost a bet), you’re probably not protected by this Act.  To be considered a bona fide lease, three requirements must all be met: “(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant; (2) the lease or tenancy was the result of an arms-length transaction; and (3) 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.”  Consequently, new owners may have a valid defense in some circumstances.

Jacksonville Bankruptcy Lawyers

Many people aren’t sure where they stand after a foreclosure or filing bankruptcy. Jacksonville Bankruptcy Lawyer, Robert L. Peters, understand every aspect of foreclosures and bankruptcy. Don’t let these circumstances get you down, contact your Jacksonville Bankruptcy Lawyer, Robert L. Peters today!

Please contact our Jacksonville Bankruptcy Lawyer office at 904.421.6907 or our Fernandina Beach Lawyer office at 904.491.1083 for a FREE consultation!