Renters whose landlords fall into foreclosure will have new protections from evictions under a bill passed by Congress this week and expected to be signed by the president today, according to the National Low Income Housing Coalition (NLIHC).
The House and Senate passed the Helping Families Save Their Homes Act May 19. Once signed by the president, the bill will provide renters whose landlords have lost their properties to foreclosure the right to stay in the home for 90 days after the foreclosure or through the term of their lease, unless the property is sold to someone who will occupy the home.
The bill will also provide similar protections to housing voucher holders.
The renter protection provisions go into effect as soon as the bill is signed, and expire at the end of 2012.
The NLIHC said it estimates that 40 percent of the households who lose their homes because of foreclosure are renters. In most states, the organization said, renters have very few rights upon their landlord’s foreclosure and are often evicted with little or no notice.
