A new federal law with very strong protections for tenants in foreclosed properties went into effect on May 20, 2009. The Helping Families Save Their Homes Act of 2009 will ensure that tenants will be able to stay for the duration of their lease before eviction can proceed based on the foreclosure, unless the purchaser of the property intends to occupy it as a primary residence.

Specifically, if the purchaser intends to use the property as a primary residence, and the lease has fewer than 90 days remaining, the lease is month to month, or there is no lease, the tenant is entitled to 90 days notice before any eviction can take place. The new law also explicitly states that it does not preempt any state or local law that provides tenants with greater protections.

According to Jim Naggles, Housing Law attorney at the Virginia Poverty Law Center, "This law addresses a problem that had been overlooked in the anguish caused by the sight of homeowners being evicted from their homes. Now the difficulties faced by people in foreclosed rental properties, who have faithfully paid their rent and otherwise complied with their leases, have been recognized and dealt with."

With foreclosure rates in Virginia at an all time high, this legislation will surely provide some relief to those in the commonwealth who are facing eviction from their homes. According to RealtyTrac, a foreclosure research firm, one in every 524 homes is receiving a foreclosure notice in Virginia and that means that more people are at risk for being homeless. With this legislation, it is hoped that people may be able to stay in their homes or at least provide them with enough time to plan for a move or make other arrangements.

For more information on the new legislation, please visit the National Low Income Housing Coalition's website at: http://www.nlihc.org/template/index.cfm or contact our intake office at 757-827-5078.