A Florida Bill aimed at protecting tenants in Florida foreclosures recently passed another threshold on its way to becoming state law. If voted into law, the Bill would require new landlords to provide existing tenants thirty days to vacate a property once it is sold at foreclosure auction. From 2009-2014, federal legislation known as the Protecting Tenants in Foreclosure Act required that new landlords honor existing annual leases, or provide 90 days to vacate on month to month leases. However, the Protecting Tenants in Foreclosure Act expired December 30, 2014, and to date has not been renewed. Upon expiration of the federal Act, Florida law reverted back to the “wild west.”
Under existing Florida law, leases are automatically terminated upon a foreclosure sale, and tenants residing in those homes are subject to immediate eviction proceedings, if they do not vacate the property. However, a new Bill making its way through the Florida Legislature would move to reinstate grace periods for tenants. The new law seeks to find compromise between unsuspecting tenants and banks/investors that purchase properties at foreclosure auctions, but may not wish to be landlords. While the Bill still has a ways to go, it appears to have the support of both the banking lobby and consumer protectionists.
Stay tuned to see if the Bill is passed into law.