Protecting Tenants at Foreclosure Act (PTFA) Scheduled to Expire at End of 2014
Updated 4/1: On March 31, the New Haven Register released an article titled Programs, laws protect Greater New Haven homeowners, tenants from foreclosure.
Updated 3/20: On March 13, Rep. Keith Ellison (D-MN) published a press release announcing the introduction of the Permanently Protecting Tenants at Foreclosure Act of 2015 (H.R. 1354).
Link to H.R. 1354 text
On December 29, Benjamin Hoen, attorney with the Real Estate Default Group of Weltman, Weinberg & Reis Co., LPA authored a Client Advisory titled Federal Tenant Protection Act Scheduled to Expire.
Client Advisories Federal Tenant Protection Act Scheduled to Expire
In 2009, President Obama signed into law the federal Protecting Tenants at Foreclosure Act (PTFA), granting tenants, under certain circumstances, the right to live out their lease or at least 90 days’ notice before having to vacate a property sold at foreclosure sale. PTFA came at the height of the foreclosure crises, in response to a pervasive trend impacting renters living in mortgaged properties. Even though they paid rent each month, tenants were being evicted when the place they called home went through foreclosure, because their landlords failed to pay the mortgage.
However, these protections will no longer exist when PTFA expires on December 31, 2014.
In 2013, Legislation was introduced in the House and Senate by a number of democratic Senators and Representatives, seeking to make these protections permanent. The Bills received very little bi-partisan support, and as a result neither the House nor the Senate took a vote on the bill prior to the December congressional recess. With the new Republican controlled Congress set to take office in 2015, it is not expected that a Bill to make these protections permanent will gain much traction in the next Congress.
In a related matter, Congress passed a one year extension to the Foreclosure Relief and Extension for Servicemembers Act prior to the December recess. The Act ensures that troops on active duty are protected against losing their home for one year following the completion of their service. Previously, under the Servicemembers Civil Relief Act (SCRA), troops were only protected for 90 days. In 2012 those protections were extended to nine months, before being extended to one year in 2014. The Act was also set to expire on December 31, 2014, and if Congress had not acted, the protections would have reverted to the original 90 days. The temporary extension of these protections will remain in effect until December 31, 2015 and the Bill now awaits the President’s signature.
WWR will continue to monitor these situations, and take all necessary steps to ensure that our clients remain in full compliance with existing Federal law. Future updates to PTFA and SCRA will also be provided as they become known.
Please click here to view the advisory online.
About Safeguard
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.
