Protecting Tenants at Foreclosure: Federal Expansion of Tenant Rights and the Unintended Consequences

Abstract

A mortgage is a double-edged sword. To most, a mortgage signifies yet another new stage in life; responsibility and the ultimate adult goal of home ownership. Unfortunately the economic downturn of 2008 drastically increased the hardship of attaining this goal, and the effects have been wide-felt, displacing both homeowners and renters from their abodes. In particular, and of primary concern to this article, renters have been suddenly evicted as a result of landlords defaulting on mortgages. Many of these renters-dutiful rent payers-are low-income tenants who receive little to no notice prior to their eviction, and who do not have the savings nor income level to afford a sudden move.