N.J. DCA Landlord/Tenant Information Series — Foreclosure, Tenants Rights Bulletin

Federal Foreclosure Law
Recent changes to federal law have strengthened a tenant’s rights in foreclosure proceedings.
However, the federal law does not preempt any State or local law that provides longer time
periods or other additional protections for tenants. Pursuant to 12 USC § 5220 the Helping
Families Save Their Homes Act of 2009, P.L. 111-22, Div A, Title VII sec. 702, 123 Stat. 1660,
before a tenant can be evicted due to foreclosure, the landlord must provide the tenant with a 90
day notice to quit when the foreclosed property has been purchased by a buyer who wants to
personally occupy it as his or her primary residence. However, if a tenant has a lease agreement
that goes beyond the 90 days the landlord may not take action to evict the tenant until after the
lease expires and the 90 day notice to quit has been given. The 90 day notice may be given 90
days before the lease expires. Month-to-month tenants and two and three-family owner-
occupied units are not exempt from the 90 day notice requirements.