What should I know about the rights of a renter during a foreclosure?

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• What is the Protecting Tenants at Foreclosure Act (PTFA)?

What is the Protecting Tenants at Foreclosure Act (PTFA)?

The Protecting Tenants at Foreclosure Act (PTFA) is a federal law. If a tenant's landlord is foreclosed on, it allows the tenant to stay in the property. The tenant can stay for at least 90 days or for the rest of the lease, whichever is greater. But, if the new owner plans to live in the property, then the tenant only has the right to remain in the property for 90 days. 

The law applies to all foreclosures on all residential properties. This includes traditional one-unit single family homes and multi-unit properties. The PTFA also extends extra protections for tenants with Section 8 vouchers.

Tenants who have leases are protected as long as they are tenants at the time the foreclosure occurs. This includes month-to-month leases or leases terminable at will.

The law does not cover:

• Tenants facing eviction in a non-foreclosed property
• Tenants with a fraudulent lease
• Tenants who enter leases after a foreclosure sale
• Homeowners in foreclosure

The law does not stop a new owner from evicting a tenant for:

• Failing to pay rent
• Breaking the lease in some other way

The PTFA applies in cases of both judicial and nonjudicial foreclosures. It applies in Georgia.

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