A bill passed by both houses and signed by the President on May 20, 2009 titled "Helping Families Save Their Homes" establishes among other provisions, some level of comfort for renters unwittingly caught in the foreclosure crisis. Many renting families have become victims of the foreclosure crisis by not knowing that the home is being foreclosed. Without warning they may be told that the home now belongs to the bank and that they have 48 hours to vacate. A provision of this bill finally addresses the problem and provides some security for renters of foreclosed homes. Helping Families Save Their Homes establishes protections for renters living in foreclosed homes.
According to Senator Dodd of Connecticut and a U.S. Senate publication: "One of the overlooked problems in the foreclosure crisis has been the eviction of renters in good standing from homes that go through foreclosure because owners of those homes, unbeknown to the renters, have not been paying their mortgage. The bill will require the bank that forecloses to honor the existing leases, for renters on a month-to-month basis, provide a 90 day notice. If the bank sells the property to an intended owner occupant, 90 day notice is required. Parallel protection are provided for Section 8 tenants.
Senator Chris Dodd is Chairman of the Senate Banking, Housing and Urban Affairs Committee.
Other provisions of the bill reportedly are designed to help prevent foreclosures and increase the availability of consumer and business credit. Some of these are listed as:
- Expand Access to Hope For Homeowners
- Increase funding for Foreclosure Prevention
- Provide New Resources for Homeless Americans
- Increase borrowing authority for FDIC and NCUA (National Credit Union Association).
For more information on this new legislation or answers to questions about buying selling or renting in Southeast Florida please call me directly at 561-306-6736 or email firstname.lastname@example.org.