New Laws Involving Evicting Tenants after a Foreclosure

Written by Allison Slusher

All lenders need to be made aware of the new law in Florida, which needs lenders to give tenants at least 30 days to leave their dwelling following a foreclosure sale.  Florida Law “§ 83.561”, named “Termination of Rental Agreement Upon Foreclosure”, came into effect on July first of 2015.  This law takes over an expired fed. law named “Protecting Tenants at Foreclosure Act”. The existence of this Florida law will not be surprising to lenders. Lenders should know their rights before evicting current tenants following a foreclosure.

“The Protecting Tenants at Foreclosure Act”, or “PTFA”, a law created in ’09, needed lenders to take foreclosed dwellings with current leasers and allowed tenants to a ninety day knowledge before they were legally evicted.  That statute was then elongated because of the “Dodd-Frank Act”, which ceased December 31, ’14.  With no further prolongation of the statute, every state was responsible with making their own personal law instead.   Within 6 mths, Florida remade its own ideal of “PTFA”.

With the new law, the lender has the title, with knowledge of the interest of the current renter in regards to the law.  The law ensures that the renter doesn’t have any accountability of the current leases, provided the lender doesn’t change the agreement.  Most buyers would want to evict the renter before they would keep the current lease. 

Before an eviction, the buyer must give a thirty day letter of termination of the lease to the renter. This letter needs to be delivered expressly by mail or delivering a copy at the property. The renter can stay on the premises for thirty days after the delivery of the termination letter.