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

Contents

• What is the Protecting Tenants at Foreclosure Act (PTFA)?
• What are my rights if my landlord is foreclosed on?

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

The Protecting Tenants at Foreclosure Act (PTFA) is a federal law. It protects tenants from immediate eviction if the home they are renting goes into foreclosure.

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

Who is protected by PTFA?

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

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What are my rights if my landlord is foreclosed on?

You may not receive direct communication about the foreclosure. However, you should stay informed through public records or by talking to your landlord. Foreclosure will likely impact your tenancy, so be sure to stay up-to-date on the status of the foreclosure. 

After receiving a notice of upcoming foreclosure, 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.

Section 8 Housing Choice Vouchers (HCV) tenants can stay in their home under the same lease after a foreclosure, and the new owner has to assume the housing assistance payment contract.

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Contents

• How can I recover my security deposit?

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How can I recover my security deposit?

Contact your landlord to formally request its return. Send this request in writing, and keep a copy for your records. It will be helpful to review your lease agreement as well for more details.

If your security deposit is not returned after following these steps, you should consider filing a claim in small claims court.

In Georgia, you can file for amounts up to $15,000. If you choose to take this route, be prepared to present your evidence and documentation. If you encounter difficulties or if the situation is complex, you should consult with an attorney or a legal aid organization specializing in tenant rights.
 

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