Protecting Tenants At Foreclosure Act of 2009 - Soon to Expire - Then what happens?

[sandyclaus]

What is the name of your state (only U.S. law)? California, but non-state specific as it applies to the law.

The Protecting Tenants At Foreclosure Act of 2009 is slated to expire at the end of this year (December 31, 2012). Is there any talk or discussion about the possibility of extending the effective dates of the Act?

I'm wondering about tenants who enter into a lease on a property that is later foreclosed upon during the tenancy. What if their expiration date falls AFTER the December, 2012 end date? Are they protected by the Act even though their lease expires after the Act expires? Or do they become vulnerable to predatory new owners again due to the upcoming end of the Act?

I'm really curious about this. DeenaCA is the perfect person to chime in, but I'm interested in what others may know or have to say about the matter. In this economy, the Act is the only thing keeping a lot of people in their homes when they become unwitting victims of unscrupulous LLs who rent out their properties in these situations.

 

[FlyingRon]

I think there's probably good chance it will be extended. However, it really is one of those things that we need to be getting away from. The only reason that it got passed to begin with is that the purchaser after foreclosure is almost always the bank in the current mess. Once the thing settles down to the way they were (were there usually was some amount of equity and the sale auction was competitive) you're going to have more griping AGAINST the legislation. As it is, the people who are encumbered are the idiot banks who caused the problem to begin with.

 

[DeenaCA]

In July 2010, Congress extended the Act through 2014. See https://www.federalregister.gov/articles/2010/10/28/2010-27309/protecting-tenants-at-foreclosure-act-guidance-on-notification-responsibilities-under-the-act-with#p-7:

Section 1484 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, approved July 21, 2010) amended PTFA, and extended the PTFA protections to December 31, 2014.

 

[sandyclaus]

In July 2010, Congress extended the Act through 2014. See https://www.federalregister.gov/articles/2010/10/28/2010-27309/protecting-tenants-at-foreclosure-act-guidance-on-notification-responsibilities-under-the-act-with#p-7:

Excellent. Didn't know that - and apparently some of the sources that are available on the net haven't been updated to reflect the extended date.

 

[FarmerJ]

Sandy one thing I wonder about is if we will see a federal law that does as some states do now as far as how deposits are held In many states as you know there is little to no penalty to a LL who ends up spending a tenants deposit other than LL being taken to court and tenant ending up with a judgement but not knowing how to enforce it or when a LL lets a property go and then files BK tenant pretty much lose so there too I wonder if we will end up seeing a fed law that also changes that.

 

[FlyingRon]

Sandy one thing I wonder about is if we will see a federal law that does as some states do now as far as how deposits are held In many states as you know there is little to no penalty to a LL who ends up spending a tenants deposit other than LL being taken to court and tenant ending up with a judgement but not knowing how to enforce it or when a LL lets a property go and then files BK tenant pretty much lose so there too I wonder if we will end up seeing a fed law that also changes that.

Frankly this one is more serious in my opinion than not canceling out the lease in a foreclosure. California is one of the few places where the new owner is on the hook for the security deposit.