Protections under the Protecting Tenants at Foreclosure Act (PTFA)

If your landlord loses the rental property through foreclosure, you have certain protections under the PTFA.

The PTFA applies to foreclosures on all residential properties and in cases of both judicial and nonjudicial foreclosures. The law protects tenants with lease rights of any kind, including month-to-month leases or leases terminable at will. As long as your tenancy is in effect as of the date of transfer of title at foreclosure, you qualify for the PTFA protections.

The PTFA allows renters whose homes are in foreclosure to remain in their homes for at least 90 days or for the remaining term of their lease, whichever is greater.

Once the new owner is permitted to terminate the lease, they must still go through the judicial process in order to evict you. This means that the new owner must obtain a court order for your eviction. To obtain a court order against you, the new owner must file an eviction lawsuit against you in court. It is illegal for your original landlord or the new owner to lock you out or to perform other types of self-help eviction.

Section 8 Housing Choice Voucher Tenants

The new owner is required to assume the housing assistance payment contract associated with your lease.

Remember: If you gave your original landlord a security deposit, your original landlord must return the security deposit to you. Learn more about security deposits.