Financial reform and consumer protections are the first things that spring to mind when most people think of the Dodd-Frank Wall Street Reform and Consumer Protections Act, but for lenders and other note-holders, start thinking about 90 days grace as well. The bill includes an extension of the Protecting Tenants at Foreclosure Act (PTFA) though the end of 2014. This act affords renters whose landlords have lost their properties due to foreclosure the option and right to remain in the home for 90 days or through the end of their lease. Furthermore, any lease or tenancy created before the actual foreclosure occurred and the title was changed is protected under PTFA.
The National Low Income Housing Coalition (NLIHC) released an analysis in 2009 indicating that nearly 40% of families affected by foreclosure are families who were paying their rent and unaware that the landlord was no longer making mortgage payments. PTFA is a response to that analysis.
Do you think this “grace period” is a good solution to this problem?
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