Hello Everyone!Sorry for the provocative title!This TPFA is really messing with my brain.For those unfamiliar, TPFA stands for the Tenant Protection and Foreclosure Act. It is a fairly new federal law, passed by congress, and here is what it says, in a nutshell.A foreclosing institution has to honor an existing lease so long as the following are true:1. The lease agreement was entered into before the sale (or is it before the notice???)2. The lease rate must be a market rate3. The lease must be arms length (no leasing to your mom)The laws regarding foreclosure, rentals, evictions, hold-overs and the like have been well established over time, mostly state by state, and even city by city. The TPFA seems to be just a monkey wrench into the system.I have a situation where the prior owner gave power of attorney to someone, who rented the place, with a purchase option, to a second party. The second party is refusing cash for keys, and obviously refusing to move out, and are hanging their hat on the TPFA. The first party is hanging on because there is a margin between their option price, and the price they have optioned with the second party. Whew!!!The person with power of attorney is an agent, and they are just hanging on for dear commission (and I think doing a dis-service to the tenant).Anyone have experience with this type of situation?Thanks!Chris Butterfieldwww.SLREO.com801-440-8800
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