NLIHC Praises Extension Of Protecting Tenants Act

Posted by Orb Staff on July 23, 2010 No Comments
Categories : Mortgage Servicing

ink=http://www.nlihc.org/detail/article.cfm?article_id=7206]National Low Income Housing Coalition[/link] (NILHC) this week praised the Dodd-Frank Wall Street Reform and Consumer Protections Act (H.R.4173) for extending the Protecting Tenants at Foreclosure Act (PTFA) through the end of 2014. PTFA, first enacted in May 2009, provides renters whose landlords have lost their properties to foreclosure the right to stay in the home for 90 days after the foreclosure or through the term of their lease. The Dodd-Frank bill also clarifies that any lease or tenancy created prior to the change of title as a result of foreclosure is protected by PTFA. According to eviction attorneys speaking at an industry event in Washington, D.C., this week, allowing leases to be entered into up until a title transfer is complete increases servicers' risk exposure. Renters are often the overlooked victims of the mortgage crisis, NLIHC says, citing previously published analysis that as many as 40% of the families affected by foreclosure are renters. The organization also heralded a provision in H.R.4173 that requires the secretary of the U.S. Department of Housing and Urban Development to develop a program to refinance troubled multifamily mortgages. "The extension of PTFA is a critical step in making sure that low-income families who are at risk of ending up on the streets through no fault of their own are able to keep their homes,’ says NLIHC President Sheila Crowley. ‘Further, addressing the growing multifamily foreclosure rate shows a keen understanding that it is not just homeowners who are losing their homes to foreclosure." SOURCE: [link=http://www.nlihc.org/detail/article.cfm?article_id=7206]NLIHC

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