A federal law was recently passed which significantly impacts a lender’s right to take possession of tenant occupied property bought at foreclosure sale. This law is known as the Protecting Tenants at Foreclosure Act and became effective upon its enactment on May 20, 2009. This law applies to tenant occupied property that is bought by a lender who has foreclosed a “federally related mortgage loan” as defined in the Real Estate Settlement Procedures Act of 1974 (“RESPA”).
