Are we protected by some sort of foreclosure law? 7 Answers as of July 11, 2013

We are under contract to buy a home. The home was owned by a family that got into financial trouble and gave the deed to the home to the bank in lieu of foreclosure. The bank went under and the home was bought up by an asset management company. That company rented the home to the current tenants. Their lease expires July 15th. We are under contract to buy the home and have already put down $10,000 in escrow and had the inspection. We are supposed to close and move in on July 18th. We have to be out of our rental on July 18th and have nowhere to go if this does not go through. Today the tenants told me they will not move out and are protected under some sort of foreclosure act giving them the right to stay for an extra 90 days! Could this be true? Thanks for your help!

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Palumbo and Kosofsky
Palumbo and Kosofsky | Michael Palumbo
You need to run these questions by the lawyer who is representing you in the closing. If you do not have a lawyer give us a call to discuss retention of our office.
Answer Applies to: New York
Replied: 6/30/2011
Frances R. Johnson
Frances R. Johnson | Frances R. Johnson
That may potentially be true, however, I am not experienced in foreclosure law, so I cannot say. Please contact an attorney with foreclosure law experience.
Answer Applies to: Colorado
Replied: 6/30/2011
Law Office of Jared Altman
Law Office of Jared Altman | Jared Altman
I am unaware of any such provision. I know that under the NYS Real Property Actions and Proceedings law they can be given ten days' notice to quit (leave) after their lease has expired. You can usually negotiate with your landlord if you have to hold over.
Answer Applies to: New York
Replied: 6/30/2011
Law Offices of Timothy G. Kearney, LLC
Law Offices of Timothy G. Kearney, LLC | Timothy G. Kearney
Given your fact pattern the current tenants may not qualify by the act you are referencing.
Answer Applies to: Connecticut
Replied: 7/11/2013
Law Offices of Steven A. Fink
Law Offices of Steven A. Fink | Steven Alan Fink
Tenants do have protection under a Federal law. The Protecting Tenants at Foreclosure Act, Pub. L. No. 111-22, 701-704 (2009), which became law on May 20, 2009, applies to state eviction proceedings. This act requires that a new owner who took title to residential rental property through foreclosure must honor existing leases until the end of the lease term. There are three exceptions to this rule: 1) if there is an existing term lease and the new owner wants to occupy the foreclosed property as a personal residence before the end of the lease term, 2) if there is an existing term lease with less than 90 days to the end of the lease term, or 3) if the existing lease on the foreclosed property is a month-to-month tenancy or a tenancy at will. In each of these cases, the owner must provide the tenant at least 90 days notice to terminate the tenancy.
Answer Applies to: California
Replied: 6/30/2011
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