Friday, October 1, 2010

Virginia Tenant Foreclosure Rights Code



Some interesting information I have found pertaining to foreclosures. Virginia State Code does not protect tenants rights in a foreclosure.

But there is recent federal legislation that was passed by the Obama administration. It's called the Helping Families Save Their Homes Act of 2009 that gives rights to tenants when a property has been foreclosed that they are renting.

Before Bill 896 was passed, landlords getting foreclosed on didn't have to tell the tenants that the house was in foreclosure. They now are required to give them notice. Also, tenants now have the right to stay in the home until the end of the lease. Section 8 payments will stay in effect and will be sent to the new owner.

There are a couple of exceptions. If there is no lease the new landlord can give a 90 days notice to the tenants to move. Also if the new owner wants to live in the house they can give a 90 day notice. Landlords are required to honor the lease if there is one. If the tenants don't move out in the 90 days the new owner who wants to live in the house or the landlord who bought it and there was no lease will have to start the eviction process which will often takes between 2-4 months.

Therefore assuming there is no lease or the new owner will be an owner occupier of the property, it will take approximately 5 - 7 months for a new owner to get the tenants out of the house if the tenants refuse to leave.

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