Charlotte Property Management update:
As a property manager it is our job to be aware of the rights of our homeowners but also be aware of the rights of our tenants. While we represent the homeowner in our management agreements, it is important to understand what recourse our tenants have in cases where the homeowner is in trouble of financially.
First, as of Oct. 1 2007, any loan servicer acting for the mortgagee or trustee who is foreclosing on residential must send by first class mail a notice of foreclosure sale to all tenants at least 20 days prior to sale date. If tenant name is not known, the notice must be sent to occupant.
The rules changed dramatically on May 20, 2009, when President Obama signed the “Protecting Tenants at Foreclosure Act of 2009.” This legislation provides:
Leases would survive a foreclosure — meaning the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days’ notice before having to move out (this notice period is longer than any state’s non-foreclosure notice period, a real boon to tenants).
The law permits (with one exception noted below) all tenants of residential real property under a lease entered before the the issuance of a notice of foreclosure on the lease property may continue to occupy the lease premises until the end of the lease term.
There is one excpetion to the tenants right to keep possession under the pre-existing lease. If the purchaser at foreclosure will occupy the lease property as a primary residence, then the tenant’s lease may be terminated with 90 days notice to tenant.
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