As background, approximately 40% of families affected by foreclosure rent their homes. Prior to the May 2009 enactment of the Protecting Tenants at Foreclosure Act (PTFA), these tenants could be evicted from their homes with as little as a few days’ notice.
Thanks to the PTFA, bona fide tenants can now stay in their homes for the remainder of their lease or for at least 90 days, whichever is longer. However, the PTFA includes a sunset provision. Unless Congress takes action, the PTFA will expire on December 31, 2014.
The Permanently Protecting Tenants at Foreclosure Act would address the ongoing impact of the foreclosure crisis on renters by removing the sunset date. This ensures renters have a basic level of federal protections regardless of when their residence is foreclosed on. The bill also adds a private right of action for tenants whose rights under the PTFA have been violated. This enforcement mechanism would better ensure compliance with the law.