GA law and tenants in foreclosed bank-owned homes! help! (bank owned, for sale) - City-Data Forum

twowolves · 05-23-2011, 02:46 PM

Does Ga law protect tenant rights?
Scenario: we want to buy a home w/a tenant in it.
His lease is not up till April 2012.

1st phone call from our realtor to tenant went like this: He's already threatening that he'll have to be evicted in order to get him out.

2nd phone call from our realtor to tenant (15mins later): He now tells her that he has in his lease...an option to buy.

The home is BANK OWNED. Assuming the tenant is telling the truth and not bluffing....trying to make us go away....Who has the rights here?

How much power does the bank have if we make an offer, it's accepted? Can they MAKE him move out in GA? OR, does GA law protect the tenant?

Here in FL, the tenant would have to leave, April or not.

Please help. We really like this house. We were/are even willing to let him and his family stay there till April! (we're not in a hurry to move)

rcsteiner · 05-23-2011, 04:10 PM

I would talk to a lawyer. It sounds like this could get sticky.

twowolves · 05-23-2011, 07:42 PM

Turns out the bank assumed the lease. So he can stay till April. That's ok with us...only he's being difficult. Refusing to let our realtor take pictures when she views the home for us (we're out of state). Says it's a violation of his privacy. The listing realty company is getting tired of his shenanigans apparently and are documenting all this bad behavior.

Maybe when he learns that we are cool and if we proceed with offer, we won't fight his lease and will happily let him stay it out until April (with his family).

bellhead · 05-23-2011, 08:26 PM

He has the duration of the lease plus 3 months under the protecting tenets foreclosure act of 2009...

Here is the wording.

On May 20, 2009, President Barak Obama signed into law, the Helping Families
Save Their Homes Act of 2009. A portion of the law, the Protecting Tenants At
Foreclosure Act of 2009, establishes protections for tenants living in foreclosed
rental properties. Under the law tenants will have to receive 90-days notice prior to
being evicted, when their rental home is foreclosed upon. In addition, tenants must
be allowed to stay in the property through the end of their lease,
with two exceptions:
1. The new owner wants to occupy the property as a personal residence, and
2. There is no lease (month to month), or there is a lease but state law allows the
lease to be terminated at any time upon notice.
Despite the above exceptions, the tenants must be given 90-days before they can be
evicted. Notification must be provided by the “immediate successor in interest”. In
some cases, this notification will come from the bank or mortgage company (when
they assume the home), and in other cases it may be the new owner. This will vary
depending upon what Ohio law states. If the Ohio legislature eventually passes the
Ohio Tenant Protection Act, the federal law will preempt it unless the Ohio law offers
greater protection.
The protections of the Protecting Tenants at Foreclosure Act of 2009, apply only to
“bona fide” tenants – who have a written contract, the lease was the result of an
arms-length transaction, and the rent is not substantially less than the fair market
rent for the property. Under any conditions, tenants may still be evicted if they violate
the lease terms.
REAL TALK: The tenant is allowed to stay in the home for a minimum of 90 days after
foreclosure. Additionally, tenants with a current lease that extends beyond 90 days
are allowed to remain in the property for the remainder of their lease unless the
new owner plans to occupy the property as a primary residence. The tenant must
continue to pay rent and abide by all existing lease terms.

peachstatehomegal · 05-23-2011, 08:33 PM

Tenants are protected with their lease - however - they must abide by their lease.

Hard to say without knowing the verbage in the lease - i.e. - there's a section (usually) that deals with putting the house up for sale during the last 30 days of occupancy, etc. (or whatever the terms state). If those rules/guidelines are not followed, then he's in default of the lease.

I just went through a similar situation (Freddie home) and they pulled it off the market until the tenant was finally evicted. We patiently sat and waited - and are closing in a week.

Tenants can be sticky situations sometimes - it just all depends!

Yes, consult a lawyer.

twowolves · 05-24-2011, 06:58 AM

Where in the world do you see him having the 'duration of the lease plus 3 months'??
Being that the bank who owns the home now, has 'assumed' the guys lease, yes he does have until the end of the lease. But, saying he gets 3 months past that is just not making ANY sense.

And what about #1 under exception in the law that you copied/pasted? We DO want to reside in the home. So where does that put us and 'him' (tenant)?

-----------------------------------------------------------------------

Quote:

Originally Posted by bellhead

He has the duration of the lease plus 3 months under the protecting tenets foreclosure act of 2009...

Here is the wording.

On May 20, 2009, President Barak Obama signed into law, the Helping Families
Save Their Homes Act of 2009. A portion of the law, the Protecting Tenants At
Foreclosure Act of 2009, establishes protections for tenants living in foreclosed
rental properties. Under the law tenants will have to receive 90-days notice prior to
being evicted, when their rental home is foreclosed upon. In addition, tenants must
be allowed to stay in the property through the end of their lease,
with two exceptions:
1. The new owner wants to occupy the property as a personal residence, and
2. There is no lease (month to month), or there is a lease but state law allows the
lease to be terminated at any time upon notice.
Despite the above exceptions, the tenants must be given 90-days before they can be
evicted. Notification must be provided by the “immediate successor in interest”. In
some cases, this notification will come from the bank or mortgage company (when
they assume the home), and in other cases it may be the new owner. This will vary
depending upon what Ohio law states. If the Ohio legislature eventually passes the
Ohio Tenant Protection Act, the federal law will preempt it unless the Ohio law offers
greater protection.
The protections of the Protecting Tenants at Foreclosure Act of 2009, apply only to
“bona fide” tenants – who have a written contract, the lease was the result of an
arms-length transaction, and the rent is not substantially less than the fair market
rent for the property. Under any conditions, tenants may still be evicted if they violate
the lease terms.
REAL TALK: The tenant is allowed to stay in the home for a minimum of 90 days after
foreclosure. Additionally, tenants with a current lease that extends beyond 90 days
are allowed to remain in the property for the remainder of their lease unless the
new owner plans to occupy the property as a primary residence. The tenant must
continue to pay rent and abide by all existing lease terms.

twowolves · 05-24-2011, 07:08 AM

My realtor is going to view the home today at 10.
When she talked to the renter last PM for the 3rd time to schedule her visit, he said she canNOT take any pictures!
Is this in his power?

Update: The home is completely foreclosed upon, bank-owned. His lease runs until April. We are fine with being his landlord till April, this is actually a good thing for us.
The listing realty company girl told me ysterday afternoon that this guy has been a pain and that they are now 'documenting' what he says and does re: showing the house.
Does this guy have the power to refuse my realtor any pictures? We are 8hrs away. I doubt that there is any verbage in the lease (that the bank has assumed) re: realtors taking pics as when he signed the last lease, the home was NOT foreclosed on. Is lease verbiage the only thing he has on his side in terms of refusing to let her take pictures?

Iow, if there's nothing in the lease pertaining to this, does his picture refusal have any legs to stand on?

Thanks.

twowolves · 05-24-2011, 07:40 AM

UPDATE:
Due to his latest refusal to let my realtor take pictures....the bank has as of today, taken the home off the market. Apparently to evict this tenant even though they assumed his lease. I guess they have enough documentation against him? Or maybe a combination of things against him? (late rent etc)
Is this going to be hard for the bank to do? (evict)

bellhead · 05-24-2011, 10:11 AM

Quote:

Originally Posted by twowolves

UPDATE:
Due to his latest refusal to let my realtor take pictures....the bank has as of today, taken the home off the market. Apparently to evict this tenant even though they assumed his lease. I guess they have enough documentation against him? Or maybe a combination of things against him? (late rent etc)
Is this going to be hard for the bank to do? (evict)

Extremely hard as long as he pays his rent.

The law says he gets the duration of the lease plus 90 days which is the 3 months.

convextech · 05-24-2011, 10:43 AM

I would run, run away from this deal. I don't care how cheap it is, don't do it. Here's the thing: if you purchase that house you have a squatter once his lease is up. They then have 90 days for you to try to get him out. You will spend umpteen thousands in legal fees and eviction paperwork to get them to the 90 days. then it's up to the sheriff to get them out. Plan on waiting months for that to happen. It sounds like they know the law and they are there to stay. Don't do it!