Protecting Tenants at Foreclosure Act-2009

The PTFA act passed by Congress in 2009 is only now popping up in eviction cases in Tennesee. This federal law provides a measure of protection to tenants with a lease arrangements who reside in properties that have been foreclosed upon by mortgage lenders. Traditionally, landlord -tenant relationships have been governed by state law in Tennessee, but the PTFA is a piece of federal legislation that impacts state law. Key provisions are 1) tenants subject to a bona fide lease may remain in the property to the end of the lease as long as they pay and are not in default. 2)a 90 days notice period for tenants without a term lease or under a lease terminable at will. For a bona fide lease to exist, the following criteria will be examined by the courts 1) the mortgagor or direct relative is not the tenant 2) the lease was the result of an arms length transaction and 3) the lease requires rent that is not substantially less than fair market rent. I have seen very few cases where this law has been an issue but it appears to be becoming used more and more as a defensive tool by tenants in foreclosure situations.