If you are looking to invest in Summit County real estate and would like to take advantage of a foreclosure be aware of the changes in evicting a long term tenant. The Federal Protecting Tenants at Foreclosure Act has change the way new owners can evict a tenant. If the tenant is not a child, spouse or parent of the debtor, lease of tenancy was formed in an arms length transactions and the lease or tenancy provides for rent that is not substantially less than fair market value. The tenant may be considered to have a bona fide lease or tenancy. Under the new Act the new owner cannot start an eviction for a minimum of 90 days. The new owner may only start the eviction if the new owner intends to occupy the property as a primary residence, provides the required 90 day notice and then sells to someone who intends to occupy the property as a primary residence or the tenant or occupant is without a lease or with a lease which can be terminate in a shorter period of time under state law.
Of great concern is if the new owner does not intend to occupy the home the act provides that the owner take the property subject to the lease and the tenants get to occupy the property for the remainder of the outstanding lease. If the tenant has a lease that is 4 years and only 1 year has been used the new owner will have to adhere to the lease agreement. It is difficult to get the information on a lease in the foreclosure process and hard work and determination will need to be used. The tenant has no obligation to the prospective new buyer to provide any information.
In the Summit County housing market there are a lot of leased homes and a good realtor who is willing to do there research would be very helpful in a foreclosure purchase. Link to www.YourSummitRealEstate.com for more information on this and to speak with an agent…