| The banks sent you "payment overdue" notices | | | | actually backfire. |
| and now you want to put your house up for sale. | | | | In the past couple of years, new laws support |
| Obviously you want to sell your home fast to | | | | renters and you might find yourself stuck in a |
| avoid foreclosure. Ideally, you hope for your | | | | lawsuit. President Obama signed the "Protecting |
| asking price, but at this point, you're even | | | | Tenants at Foreclosure Act of 2009" on May 20, |
| considering a short sale. | | | | 2009. This legislation means that leases survive a |
| | | | | foreclosure. In other words, the tenant can stay |
| The problem… | | | | at least until the end of the lease and |
| You have reliable tenants in your house. Can you | | | | month-to-month tenants are entitled to 90 days' |
| sell the house with renters still living in the | | | | notice before having to move out. In the case of |
| property you own? | | | | a month-to-month lease, undergoing a short-sale is |
| | | | | much easier. |
| The approach… | | | | |
| You must first determine what kind of contract | | | | An exception was carved out for the buyer who |
| or lease you and your tenants signed. Is it a | | | | intends to live on the property; this buyer may |
| year-long lease? Is it a month-to-month contract? | | | | terminate a lease with 90 days' notice. The law |
| The legal background... | | | | adds that any state legislation that is more |
| With a long-term lease in the picture, you might | | | | generous to tenants will not be preempted by the |
| want to wait for the contract to end. Please be | | | | federal law. These protections apply to Section 8 |
| very wary before putting your property for sale. | | | | tenants, too. |
| In case your house hasn't gone through a | | | | |
| foreclosure, your signed lease takes precedence. | | | | Another option... |
| You could cajole your tenants into leaving or offer | | | | You can always offer to buy out your tenant's |
| monetary incentives, but you cannot force them | | | | lease. This is sometimes ample incentive to |
| to vacate your house. Forcibly evicting tenants or | | | | encourage their early departure so that you can |
| not providing enough time for them to move can | | | | proceed with your sale. |