Protecting Tenants in Foreclosure
In Orlando Florida about 20% of all foreclosures are occupied by tenants.These tenants are oftentimes overlooked or ignored in the foreclosure process.They pay their rent and suddenly one day they are notified that the property they have been renting is in foreclosure.
However; tenants rights were strengthened considerable in 2009 by the enactment of a federal law know as the Protection Tenants at Foreclosure Act. Now tenants with a long term lease agreement are entitled to continue renting the home for the duration of their lease. Should the bank take back the house the bank must honor the terms of the existing agreement. The Act also protects tenants from any rent increases or other changes to the current lease.
There is one exception: If the new owner intends to live in the property as a primary residence, tenants can be required to vacate the property before the end of their lease term; However, the new owner must still provide them with a 90 day notice.
If you are thinking of renting a houses in the Orlando area you should always ask if the owner is current with their mortgage and you should always ask for a one year lease.
If you are looking for a good, honest, no nonsense property management company in Orlando call us at 407-283-5065