Renters Can Now Stay In Bank REO’s Longer
INDUSTRY NEWS, REAL ESTATE LEGISLATION, SHASTA COUNTY
May 27th, 2009
Bona fide tenants now can remain in a home that has been foreclosed on for 90 days before having to vacate. This applies to the REO lender and/or the buyer of the home. Furthermore, if the tenant has a lease that extends beyond the 90 day period, the property owner must allow the tenant to stay until the lease ends.
In areas with rent control laws, rent-subsidized programs (Section 
or other state laws that provide additional protections, the stricter provisions apply. This law sunsets December 31, 2012. The law applies to single family homes and homes where a federally-related mortgage was foreclosed upon.
Lenders typically have real estate agents or bank representatives inspect a property to ascertain if it is occupied or vacant. Some tenants are offered “cash for keys” to expedite the process of vacating the property in order to ready the property for sell. If a tenant agrees to vacate early under such an agreement, they will waive their rights to remain in the property as per their lease.
This law took effect immediately as part of the Helping Families Save Their Homes Act of 2009 signed into law by President Obama.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
CORNER OF COURT AND PLACER IN REDDING
