Renters Protected from Foreclosure Evictions

Renters now have a little more protection from eviction if their landlord’s property is foreclosed on, thanks to the new housing law signed by President Obama.

The law allows tenants to remain in their foreclosed rentals through the end of their lease and then 90 days after that before being forced to vacate by the lender. Renters without leases will have 90 days, a significant improvement over what most received before: almost no notice at all.

The National Low Income Housing Coalition estimates 40 percent of foreclosed properties in the country have renters and the new law could aid tens of thousands of renters.

Before, many renters booted out of foreclosed homes would have to find emergency shelter with family or friends because they have little savings to cover moving costs, first month’s rent and a security deposit at another apartment. In the worst cases, some families are forced into shelters for temporary housing.

Earlier this year, Fannie Mae and Freddie Mac stepped up their renter protections, but they only applied to loans the companies held or guaranteed.