Tenant Protection from Rent Skimming

[Nemi W.]

I met with a seller today who said he'd heard of a law that just came out within the last couple of weeks, that protects tenants (from being evicted) when the owner is collecting rent without paying the mortgage.

Now I know he may just be pulling my leg and could simply be an owner who is planning on breaking the law but is feeling guilty about the possiblility of a man, his wife and 3 kids being thrown out. But I want to confidently say "No", OR be able speak to a new law he may be thinking of that pertains to something similar.

If anyone knows, pls advise.

[Steve Babiak]

Originally posted by invmatchmaker:

...

The owners are going to try to short sale anyway so hopefully it doesn't come to the renters being thrown out without proper notice.

OK, short sale is DIFFERENT from foreclosure!

If the property is purchased, the lease agreement goes with the property; a short sale is a form of purchase, and the buyer of said short sale will be obligated to abide by the lease.

If the lease is month to month, and if the buyer wishes to occupy the property themselves, then they should give notice to the tenants, or offer to give the tenants a "relocation subsidy". If the lease has many months to go before it runs out, and the buyer wishes to occupy the house, then they will have to negotiate with the tenants to see what it might take to get them to go ("relocation subsidy" AKA "cash for keys").