ImageThis is an update to May 26, 2009 Eviction of Tenants In the Event of Foreclosure.

 “Helping Families Save Their Homes Act May 20, 2009” (S. 896) has been extended by the Dodd-Frank Act (Pub. L. 111–203, approved July 21, 2010) to December 31, 2014.

To fall under the Act, a bona fide lease (defined below) must be entered into prior to the date of the notice of foreclosure, which is defined as ‘‘the date on which complete title to a property has been transferred to a successor entity or person as a result of an order of a court or pursuant to the provisions in a mortgage, deed of trust, or security deed.’’  In other words AFTER the foreclosure?  So it appears you can enter into a bona fide lease the day before the trustee sale? That is not advisable.

A bona fide lease is one in which: (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.

The entire notice can be found by clicking here.  Go to page 15379.  Also I found this three page manual from the Comptroller of the Currency Administrator of National Banks  click here ——> here.

If the Federal law expires in 2014 we have NRS 40 in Nevada  what is known as the form NOTICE TO TENANTS OF THE PROPERTY,  in this statute tenants now get a minium of 60 days to vacate.

There is a helpful Renters in Foreclosure Toolkit  from The National Low Income Housing Coalition.

Questions:  darren@dwelshlaw.com

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