Before President Obama signed the “Protecting Tenants at Foreclosure Act of 2009,” most renters lost their leases when the bank foreclosed on the owner. This Act provided that leases would survive a foreclosure, with certain provisions. The tenant could stay at least until the end of the lease written lease if they were a “bona fide” tenant, meaning that the property was rented out at market value (not for $100 per month). A month-to-month tenant without a written lease would be entitled to 90 days’ notice before having to move out.
An exception was formed for a buyer who intends to live on the property. This buyer could terminate a lease with 90 days’ notice. This was done to exclude foreclosing banks and investors from kicking out true innocent tenants.
These protections applied to Section 8 tenants, too.
On December 31, 2014, this Act expired as it was not renewed by Congress. Now the law is back to the state where an innocent tenant, who had no knowledge of any foreclosure other than paying money to an owner pocketing the money and not paying the bank, taxes, insurance or maintaining the property, can be evicted upon title to ANY new owner. This will surely have a large affect on many tenants across the country; especially in Florida.