Senate Bill Protects Renters When Landlords are in Foreclosure

SB 952 will help prevent unexpected eviction, loss of rental deposits.

Aerial shot of Oregon's State Capitol in Salem by Tim King Salem-News.com

(SALEM, Ore.) - With the foreclosure crisis continuing to hit Oregon hard, the Senate passed SB 952 this morning, protecting the rights of tenants when the property they rent or lease goes into foreclosure.

“As the number of foreclosed investment properties continues to increase, Oregon renters face uncertainty about the fate of their homes,” said Senator Suzanne Bonamici (D-Washington County/Portland), chair of Senate Consumer Protection Committee.

“They are truly innocent victims – losing their homes through no fault of their own. They deserve as much notification as possible if the stability of their rented home is in question.”

Currently, tenants have few rights if their landlord’s property is foreclosed. They can be evicted with short notice, many risk losing their deposits, and they may incur expensive moving costs association with a sudden, unplanned move.

Senate Bill 952 encompasses a number of protections for tenants and purchasers of foreclosed property, including:

* Requiring notice to tenants if a foreclosure proceeding begins against their rental property, including information about their rights and where they can go for assistance.

* Providing protection from immediate eviction. Under SB 952, the tenant has 30 days from the date of sale and 60 days if the lease longer is than month to month.

* Once tenants receive a notice of the foreclosure, they may instruct their landlords to apply any security deposit or pre-paid rent toward their ongoing rent obligation.

* Finally, the bill incorporates protections for purchasers of foreclosed property, releasing them from liability for pre-existing issues or security deposits.

“This is important legislation because it protects many of the most vulnerable in our state,” said Senate Majority Leader Richard Devlin (D-Tualatin).

“Low-income families who rent are the most likely to find themselves the victims of foreclosed rental properties. This bill helps minimize the stress of sudden upheaval by creating rights for Oregon tenants.”

The bill will now go to the House for consideration.

Source: Oregon Legislature