The Foreclosure Fairness Act requires purchasers of foreclosed properties to provide written notice to tenants within 10 days after taking ownership explaining to tenants their right to stay in their units as well as information regarding where rent should be sent.
This notice must be distributed to tenants in buildings with 10 or fewer units. In buildings with 10 or more units, the notice must be posted in a common area of the building. If the Foreclosure Fairness Act is violated, tenants will be able to sue the new owners of foreclosed properties or their agents for either triple damages or $2,000 per violation of the law if the proper notice is not given or tenants are pressured to leave in violation of the law.
For additional information on this issue, visit the Public Advocate’s website on the rights of tenants in foreclosed properties.