Foreclosures on home renters

  • Published
  • By Capt. Liz Burton
  • 56th Fighter Wing Staff Judge Advocate
With the current housing market in flux, some rental homes are being foreclosed upon. The good news is that there are protections for tenants renting a home that enters foreclosure proceedings.

Public Law 111-22, Sections 701-704, protects tenants affected by foreclosures. As of May 20, 2009, any rental property sold due to foreclosure to another landlord transfers the existing lease to that landlord. Therefore, renters who entered into a lease agreement before the notice of foreclosure are allowed to remain in the residence to the end of their existing lease agreement.

In this case, military members and their dependents who are allowed to remain in the lease until it expires will not be authorized a local move due to foreclosure.

However, this provision does not apply to property that is sold to a buyer who will occupy the premises as a primary residence.

If the unit will be used as the buyer's primary residence, the renter must be given a 90-day notice to vacate before the lease can be terminated. Even in a situation where the lease agreement terminates after the notice of foreclosure, but prior to the end of the 90-day notice, the renter is still protected for the full 90 days after receipt of the notice to vacate.

Members and their dependents who executed a lease that has not expired (month-to-month leases are considered leases that have expired) and are forced to vacate a home that was foreclosed on and sold to new owners will be authorized a local move if the new owners occupy the home as their primary dwelling. The military member must show a copy of the present lease agreement before a local move can be authorized.

The Joint Federal Travel Regulations, para. U5355-D.C. does not authorize a local move when a member moves from local economy quarters as a result of a landlord's refusal to renew a lease or otherwise permit continued occupancy. The move is considered for the convenience of the member absent military necessity of requirement.

A local move is authorized to another dwelling within commuting distance of the member's permanent duty station. In cases where dependents are forced to vacate, the local move is to another dwelling within the local area of the dependent's designated location. The permanent-change-of-station household goods weight allowances apply in accordance with JFTR, para. U5310-B.

Funding will be provided by operation and maintenance funds and foreclosure unique project codes. In no circumstances will an Airman authorized a local move due to foreclosure of rental property be forced to pay for this move out-of-pocket. Dislocation allowance, storage in transit and nontemporary storage are not authorized.

The above provisions apply to military members of all components serving on active duty, to include members serving in Title 10 and Title 32 active Guard and Reserve status.

For more information on foreclosure moves, call Capt. Joseph Loman at (623) 856-6901.