The Protecting Tenants at Foreclosure Act (PTFA), which was originated in 2009 is set to expire soon. This law for the last three years has helped millions of tenants stay in their home and not become homeless in the event of a rental foreclosure. The law is since ready to expire in 2014. Many experts believe that this could set off an ignition of evictions and may cause the homeless rate to increase.
According to a report released by the U.S. Conference of Mayors, homelessness is up 16% among families in major US cities. As we've been reporting here on LoanSafe, many federal officials are trying to fight this by donating to develop homeless housing centers and programs.
Rental properties make up approximately 20% of all foreclosures. In 2009, the PTFA gave renters a new kind of protection. Under the PTFA, renters retained the right to stay in their homes until their lease ended. If there was no lease, renters had 90 days (about 3 months) to remain in their home after the foreclosure auction. When this law expires, renters will again be at the mercy of a confusing system of state and local protections that could be very fair in some states, but completely unfair in others.
Tristia Bauman, a housing attorney at the National Law Center on Homelessness & Poverty, has stated that states have not stepped up to the plate to re-ensure renters a decent form of protection. Bauman agreed that it's essential to make sure the PTFA last beyond the year 2014. Bauman is the primary author of the law center's new report, "Eviction (Without) Notice."
Bauman's report warns of a rise in homelessness if renters loose their essential tenant rights. Maria Foscarinis, executive director of the National Law Center on Homelessness & Poverty, said in a statement she agrees that the report is essential to show the PTFA's importance. Foscarinis addresses that because of constant ignorance of the law, families and individual tenant's rights are often violated.
We at LoanSafe completely agree with this, as we post federal information every day regarding federal renter programs, housing grants, and homeless shelter programs. This Act has not only protected renters during these hard times, but landlords seem to benefit as well many times from the rules and regulations set in place. Until the housing market is back on its feet, this is one Act that should not be overlooked.