The Protecting Tenants at Foreclosure Act of 2009 was set to expire on December 31, 2014, if it was not extended through further legislation. According to information received from the office of Arizona Congressman David Schweikert (R-6th Dist), and confirmed by the office of Arizona Congressman Trent Franks (R-8th Dist), the PTFA extension was not included in any end of year legislation, and has therefore expired. Congressman Schweikert’s office further advised that the PTFA cannot be revived without further congressional action.
What this means is, if a property is purchased at a Trustee sale, or through other foreclosure proceedings, any person living on the property can be given a five day notice to vacate regardless of whether there is a lease with the prior owner. The foreclosure sale extinguishes any lease agreement that may have been in place.
We have also determined that this would also apply to a foreclosure sale that occurred prior to December 31, 2014. Because that transaction occurred while the PTFA was in place the protections of the PTFA would apply to that transaction only through December 31, 2014. There is nothing in the legislation that would require adherence to the PTFA once it expired.
We will post more information as soon as it becomes available.
Kevin W. Holliday
Hull, Holliday & Holliday PLC