Washington Passes New Foreclosure Law

Washington Passes New Foreclosure Law

Washington Passes New Foreclosure Law

07/07/2009

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The new state law, though, doesn't require such tenants to pay rent to the new owner. However, the law doesn't require the new owner to honor the old lease and tenants must move out within 60 days of being notified.

The state's largest association of landlords didn't oppose the new law.

In general, federal law trumps state law in setting a minimum standard of protection, attorneys say. In cases where the laws conflict, the provision that affords tenants with greater protection should apply, experts say.

This Law Aplies To Section 8

Finding a new rental is especially hard for tenants who are poor and receive vouchers for housing through the federal Section 8 program because of the tight supply of this type of housing. The federal law offers those tenants the same protections.

The new state law requires trustees who foreclose on a property to give tenants at least 90 days' notice before the sale and of their options. Although trustees do post notices on the property, now they will be required to mail a notice addressed to the property's residents.

Even before the new laws passed, Fannie Mae and Freddie Mac, two federal agencies that hold many of the nation's home mortgages, had declared moratoriums on foreclosures and evictions of renters in foreclosed properties.

In the past, tenants in foreclosed properties in Washington state had just 20 days after the sale to move out.
Before, tenants weren't entitled to any notice before the new owner filed a lawsuit to evict them.