Congress recently reenacted the “Protecting Tenants at Foreclosure Act” (PTFA) on May 24, 2018 which had expired as discussed here at the end of 2014 after running from 2009-2014. The PTFA went back into effect June 24, 2018.
Per the Protecting Tenants at Foreclosure Act, the tenant(s) could remain at the foreclosed property at least until the end of the lease written lease if the lease was entered into before the notice of foreclosure” and tenants were a “bona fide” tenant; meaning that the property was rented out at market value (not for $100 per month as a “pretend tenant” to beat the system). Tenants can also not be spouse, parent or child of the owners on the mortgage.
The one exception to the Protecting Tenants at Foreclosure Act is if the property was purchased by someone who will occupy the property, then that purchaser can terminate the lease on 90 days’ notice even when the tenant has a lease that lasted beyond those 90 days.
A month-to-month tenant, or one without a written lease, would be entitled to 90 days’ notice before having to move out.
This move directly contradicts Florida Statute 83.561 which gave tenants only 30 days’ notice IF they were a bona fide tenant (paying fair market rental value) before a writ of possession to remove them could be issued. This issue is yet to be litigated in any known Florida published opinion. Our best guess is that the Protecting Tenants at Foreclosure Act as federal law would trump 83.561 and thus control.
There will likely be a repeal of 83.561, or case law abolishing its enforcement as seemingly the Protecting Tenants at Foreclosure Act as federal law preempts Florida Statute and applies to all states.