State Urged To Protect Tenants In Foreclosure

by Leonard J. Honeyman | July 14, 2009 8:01 AM | | Comments (2)

mordechai.JPGAlthough they lack the power to compel action, the aldermanic Legislation Committee approved a resolution Monday night asking the state to watch out for renters if their landlord faces foreclosure.

The resolution, by Beaver Hills Alderman Mordechai Sandman (pictured), urges the governor and General Assembly to pass rules that mandate landlords notify tenants at least 30 days before a foreclosed dwelling is sold. The tenant then would have the right to a month-to-month lease.

If the landlord doesn’t let the tenant know about the foreclosure or fails to honor a rental agreement, then the tenant would be entitled to one month’s rent plus the security deposit and reasonable attorneys’ fees.

A landlord renting a dwelling already in foreclosure would be required to give the tenant written notice of the pending action. Landlords would then be required to offer the tenant to right to stay under the rental agreement in force within 14 days.

Sandman said that although the city has no power over the state, he hopes the state will consider adopting a similar resolution. The resolution now goes to the full board for a reading in August and a vote at its September meeting.







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Comments

Posted by: huh? | July 14, 2009 4:13 PM

Why is this news? Isn't this just some Resolution from the Board asking the State to do something?

Posted by: christine | July 14, 2009 7:01 PM

I thought state law already said renters must be given a 60-day stay. In the case of Freddie Mac and Fannie Mae, renters are allowed to stay while the property is in foreclosure as long as they are current on their rent.

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