You may think that not owning a home will protect you from foreclosure – but an estimated 40 percent of households facing eviction due to foreclosure are renters, not homeowners. Many renters have been evicted from their homes with little or no notice – sometimes with no idea that a foreclosure was pending – after their landlords were unable to pay their mortgages.
But renters now have some protection against eviction under the foreclosure prevention bill signed by President Obama last week. The new law, which took effect immediately, requires the new owners of a property to allow tenants to remain in the home, as long as the tenants pay their rent on time. Renters will be able to stay until the end of their lease, or will get at least 90 days notice if they do not have a lease or if the new owner intends to reside in the home.