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Financial Institution Letters

Protecting Tenants at Foreclosure Act
Public Law
September 28, 2009

Summary: On May 20, 2009, President Obama signed the Helping Families Save Their Homes Act of 2009, Public Law 111-22. Included in the public law is the Protecting Tenants at Foreclosure Act (Division A, Title VII), which provides protections for tenants, including tenants in housing subsidized by Section 8 of the United States Housing Act of 1937, who are living in homes subject to foreclosure.


Under the Protecting Tenants at Foreclosure Act:

  • All tenants must receive a 90-day notice before being evicted as the result of a foreclosure.
  • With some exceptions, the law requires that in the event of foreclosure, existing leases for renters are honored to the end of the term of their lease.
  • The stated exceptions are for tenants without a lease, tenants with a lease terminable at will under state law, or where the owner acquiring the property will occupy it as a primary residence. In these cases, the tenants must receive a minimum of 90 days notice to vacate the property.
  • This law does not affect the requirements of any state or local law that provides longer time periods or other additional protections for tenants.
  • The new law does not require any agency to issue implementing regulations; these protections apply to foreclosures after May 20, 2009.
  • FDIC examiners will monitor and enforce compliance with the requirements of this law in the same manner as other consumer protection laws and regulations.

FDIC-Supervised Institutions

Suggested Routing:
Compliance Officer
Chief Lending Officer
Loan Servicing/Loss Mitigation Department

Related Topics:
Section 8(o)(7) of the United States Housing Act of 1937

Protecting Tenants at Foreclosure Act (Public Law 111-22, Division A, Title VII) - PDF (PDF Help)

Samuel Frumkin, Senior Policy Analyst, at (202) 898-6602 or; or
Jeanne Rentezelas, Counsel, at (202) 898-6786 or

Printable Format:
FIL-56-2009 - PDF (PDF Help)

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, visit

Paper copies of FDIC financial institution letters may be obtained via the FDIC's Public Information Center (1-877-275-3342 or 703-562-2200). .

Last Updated 09/28/2009

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