On May 20, 2009, President Obama signed into federal law a bill containing provisions protecting tenants living in foreclosed buildings. (The Protecting Tenants in Foreclosure Act is Title VII of Public Law 111-22). Specifically, the new law requires if a home/building that is currently occupied by renters goes into foreclosure and is subsequently purchased by a new buyer, the buyer must (1) provide legal tenants of the property ninety (90) days notice before they can be evicted; and (2) allow tenants with leases to occupy the property until the end of the lease (unless the buyer is planning on living in the property; then the buyer must provide the tenants at least ninety (90) days notice before eviction.) This law went into effect as of May 20, 2009. See www.NILHC.com for more information.

On the state level, Washington passed a similar law that goes into effect July 26, 2009. Specifically, under Law S. 896 (PL 111-22), any residential tenant occupying property at the time the property is foreclosed must be given 60 days written notice before an eviction can occur. During this 60 days, the only reasons landlord could expedite removal of the tenant would include the tenant committing waste to the property or creating a nuisance. See http://apps.leg.wa.gov/billinfo/summary.aspx?bill=5810&year=2009 for a complete copy of the passed law.

It is still unclear how the state law and the federal law will mesh with each other. Anyone who has questions regarding the details of the federal/state law(s) should contact either an attorney or professional in the real estate field for assistance.