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Is there any federal law or TN law that has not expired &

Is there any federal...

Is there any federal law or TN law that has not expired & CURRENTLY protects tenants that have a written lease that makes banks foreclosing on their properties honor existing leases?

Lawyer's Assistant: What steps have they taken so far? Have they prepared or filed any paperwork?

No

Lawyer's Assistant: Have they talked to a TN lawyer about this?

No

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Not at the moment except that I keep reading from google various conflicting information and some sources say federally it is a law that, with a written lease, that banks, or those foreclosing or those privately buying a rental property through a foreclosure sale, do have to honor the rental rate and term of existing leases, as long as its an arms length transaction as far as rent rate/payments and not renting to your family super cheap etc, , which the situation I am concerned about is arms length, (with one & sounds like the only other exception to the rule of honoring written leases being if an owner occupant buys the foreclosure rental property to make it their primary residence, which I don't think will happen), however many of these articles some dated as recently as July 2017, cite the federal "Protecting Tenants During Foreclosure Act of 2009", but while other websites mention it expired in 2014 sometime, others make it sound like it is still federal law or that somehow since then and still currently existing written leases must be honored, and/ or depending on the source where they don't make that sound certain, they say the bank and/or new owner is obligated to give tenants at minimum 90 days notice once they legally own the property again. Do you know or can the lawyer find out accurate information from a reliable source, hopefully citing a current federal or Tn specific law in the answer ?

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Answered in 4 minutes by:
3/25/2018
Loren
Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 37,339
Experience: 30 years of real estate practice experience.
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Thank you for using JA. I am Loren, a licensed attorney for over 30 yrs., and I am here to help.

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I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get. I just ask that you not shoot the messenger.

Unfortunately, The Protecting Tenants at Foreclosure Act of 2009 (PTFA), which originally became effective on May 20, 2009, expired on December 31, 2014.

Therefore, an order of foreclosure will, as a general rule, terminate any leases not recorded prior to the foreclosed mortgage.

You may be able to negotiate a new lease with the new owner, or a "cash for keys" agreement, which would provide a payment for leaving voluntarily by a certain date.

I am sorry. I wish I could tell you otherwise, but I do not want you blindsided.

I am happy to continue if you have further questions.

If (and only if) you are completely satisfied that your question is answered professionally and accurately, even if not the answer you were hoping to get, please remember to leave a favorable rating (click 5 stars in the rating section on this page). It is the only way that I am credited by JustAnswer for answering your question.

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Customer reply replied 29 days ago
What do you mean by not recorded? I have copies of the lease agreements signed by me, the landlord, and by my tenants from before the loan was in default. Also, I spoke with a TN lawyer that for some reason cited this same law during a consultation for me concerning my bankruptcy, so he wasn't necessarily an expert in real estate law but does currently practice in the state of TN, and said if the leases were written they'd likely be honored and'or if not banks had to give the tenants at least 90 days notice to vacate once they owned the property. I afterwards looked up that act he quoted which was federal but did technically expire and it did confuse me, but I thought that maybe he knew that as far a Tn went maybe they made it statute or that maybe parties involved in such situations maybe still generally follow those or similar guidelines? Did you just look up the federal law and shoot me a quick statement, or do you have or more importantly can you please try to find me any state specific and reliable information on what is law and/ or common practice in TN?
Customer reply replied 29 days ago
I thought actually that the bankruptcy lawyer said that if my tenants were all on written leases that they had to be honored... and that if not they get a minmum of 90 days but that has been about a month ago so the exact details are shady but I left there feeling as if my tenants were protected from displacement in a very short time frame.

By "recording", I mean a lease filed with the county recorder of deeds, prior to the recording of the mortgage.

Otherwise, the order of foreclosure terminates the lease and the tenancy becomes month to month. A month to month tenancy can be terminated with 30 days notice.

The 90 days was the required notice for a month to month tenant under the federal tenant protection law which expired at the end of 2014.

TN has no specific tenant protection laws regarding foreclosure.

Again, I am sorry to be the bearer of bad news.

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Your bankruptcy lawyer may not have been aware of the expiration of the federal law.

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Did you have further questions? Have I answered your question? Please let me know.

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Customer reply replied 29 days ago
OK. I just get frustrated that I asked a lawyer in TN and got bad information at a time when I was super concerned about the notices and time frames to vacate and that pocket sense had an article concerning this very scenario in TN and it said written leases would be honored without mentioning prior to the mortgage situation and both sources were innaccurate and apparently knew enough to be dangerous. I decided to let the current "buyer" that had been trying to buy the places for months continue to "wait for his tax returns", while also trying to "sale a piece of land he owned that would allow him to buy cash or pay off the mortgage after getting loan that he supposedly had a buyer lined up for too. I did not think them being displaced anytime soon was an issue and as my life was falling apart and I had to find housing for me, I got a good answer and so I put that issue on the back burner and didn't hit the ground running trying to find a new buyer whom could buy sooner....I just have been so overwhelmed and I am frustrated that I initially got bad information and now that I need to tell the tenants, its different than had been previously explained to me. I guess theres nothing else you can answer though, except that do you know if since it was originally an FHA owner occupied that was refinanced after a year or two to a unicorn of a -loan known as an FHA loan with a non- owner-occupied rider, due to converting after the owner occupancy was done to the FHA non- owner occupied which you can't use to purchase only to refinance..anyway do you think FHA may have some guidelines the mortgage company has to follow reguarding this in order to get reimbursed by them for the likely deficiency at foreclosure sale?
Customer reply replied 29 days ago
Does FHA have any additional protections..I thought it might be an unexplored angle since most people don't think about an FHA loan being on a mutli-family
I am sorry. I know how frustrating this is for you.
FHA has no such guidelines.
Loren
Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 37,339
Experience: 30 years of real estate practice experience.
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Loren and 87 other Real Estate Law Specialists are ready to help you
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Customer reply replied 29 days ago
Yep. Medical issues got me here in this postition. At least now I know the only approach that might have a chance of helping the tenants. The mortgage company told me of a process requiring alot of documents I can't locate right off hand, but they have a way for me to ask if they'll honor my tenants leases, and let me do deed in lieu, maybe for a little damage control...THanks
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