Proper notice under the Protecting Tenants at Foreclosure Act (PTFA), the federal law that protects renters after a foreclosure sale, is one clear written notice giving a bona fide tenant at least 90 days advance warning of whether and when to vacate. A buyer that sends conflicting demands without correcting the error has not given proper notice.
The rule comes from a Maryland appeal involving tenant Judy Curtis and foreclosure purchaser U.S. Bank. The Maryland Court of Appeals explained that the immediate successor in interest, generally the purchaser, must provide that 90-day notice, according to the Maryland foreclosure-tenant ruling.
Official resources:
- Read the official guidance from Fdic — Use this primary source to verify the official guidance.
- Read the official notice from Lewitthackman — Use this primary source to verify the official announcement.
Table of Contents
- Which tenants are covered?
- What went wrong in the Curtis notices?
- Why did the court reject the conflicting notices?
- What must a foreclosure buyer do instead?
- Frequently Asked Questions
Which tenants are covered?
A tenant is bona fide only when three tests are met. The renter cannot be the mortgagor or a close family member. The lease must be an arm's-length deal, and the rent cannot be substantially below fair market value unless a subsidy explains the gap.
That definition screens out insider arrangements while protecting ordinary renters. A market-rate renter with a standard lease is the core example. A child of the former owner living rent-free is not.
What went wrong in the Curtis notices?
In December 2010, the purchaser sent Curtis two notices that pointed in different directions. One demanded immediate move-out, while the other set a 90-day vacate date. The immediate-vacate demand was never corrected.
The mix left the tenant unable to know which deadline controlled. For readers reviewing old files or current demand letters, that kind of conflict is a warning sign. One letter, one date, and one instruction matter.
Why did the court reject the conflicting notices?
The court held the contradictory and misleading uncorrected notices did not satisfy the duty to provide accurate advance notice. Because the bank had not given valid notice, it had no right to immediate possession.
That timing point also decided the possession motion. A motion filed before the buyer earns the right to possession is premature and must be dismissed, even if court delay lets the tenant remain through the PTFA period.
- Valid notice comes before a possession case, not during it.
- An early filing cannot be fixed by the tenant staying longer.
- Accuracy matters as much as the 90-day count.
What must a foreclosure buyer do instead?
A buyer should treat a surviving subordinate bona fide lease as creating a landlord-tenant relationship. Practical analysis of Nativi v. Deutsche Bank draws the same lesson: send one clear 90-day notice and wait before suing for possession, according to the California PTFA analysis. There is an important limit.
A buyer who will occupy the home as a primary residence, or where the lease is terminable at will, may end a bona fide lease on 90 days written notice rather than honoring its full term. Congress made these PTFA protections permanent effective June 23, 2018, after an earlier expiration, according to the FDIC examination manual. Keep the notice, the envelope, proof of mailing or delivery, the lease, rent receipts, and any follow-up letters together. A tenant facing eviction can compare dates across every buyer letter and ask a local legal aid office whether the 90-day calculation and delivery were correct.
Frequently Asked Questions
Does a 90-day notice have to honor a longer lease?
Often yes, unless the buyer will live in the home as a primary residence or the lease is terminable at will. In those cases, the buyer may terminate on 90 days written notice.
Can a buyer sue for possession first and fix notice later?
No. The buyer must establish the right to possession through valid notice before filing. An early motion is premature and subject to dismissal.