The Protecting Tenants at Foreclosure Act (PTFA) is a federal law that gives renters living in a foreclosed property the right to notice before they can be forced out. It protects a tenant being sued for eviction whenever the home they rent has gone through foreclosure and the new owner wants them to leave sooner than federal law allows. The law does not stop a foreclosure or prevent an eviction case from being filed. Instead, it sets a floor: a bona fide tenant must get at least 90 days' written notice, and in many cases can stay until the lease ends.
Table of Contents
- Where the PTFA Came From and Why It Almost Disappeared
- Who Counts as a "Bona Fide" Tenant
- What Notice a New Owner Must Give
- Section 8 Tenants and State Law Add-Ons
- What to Do if You're Sued for Eviction After a Foreclosure
- Frequently Asked Questions
Where the PTFA Came From and Why It Almost Disappeared
Congress created the PTFA as Title VII of the Helping Families Save Their Homes Act, signed into law on May 20, 2009, establishing the first federal notice protections for renters whose homes were foreclosed on, according to a National Housing Law Project report. Before that, tenants in a foreclosed home had no guaranteed federal notice period at all. The original law included a sunset clause, and it expired on December 31, 2014.
Once it lapsed, renters in most states could be removed with only a few days' notice because no federal minimum applied, per the National Low Income Housing Coalition. The gap lasted more than three years. Congress permanently revived the PTFA through Section 304 of S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, repealing the sunset provision, and President Trump signed it into law on May 24, 2018, according to the National Low Income Housing Coalition and the Oregon State Bar Consumer Law Section. The protections are now permanent, with no expiration date to track.
Who Counts as a "Bona Fide" Tenant
The PTFA only protects renters who meet a specific legal definition of a bona fide tenancy. A tenancy qualifies only if it meets all of the conditions a Maryland Court of Appeals opinion laid out while applying the statute: This test, described in the Maryland court's opinion, exists to stop a foreclosed homeowner from simply calling themselves a "tenant" of their own former house to buy extra time. A renter with a genuine, independent lease signed before the foreclosure typically meets all three conditions.
- The lease or tenancy came from an arm's-length transaction — not a deal arranged to game the foreclosure process.
- The tenant is not the mortgagor (the person whose mortgage was foreclosed) or that person's child, spouse, or parent.
- The rent is not substantially below fair market rent, unless it is reduced because of a federal, state, or local subsidy.
What Notice a New Owner Must Give
Once a federally-related mortgage loan is foreclosed, the immediate successor in interest — the bank, investor, or buyer who takes title — must give any bona fide tenant written notice at least 90 days before requiring them to vacate, according to the Oregon State Bar Consumer Law Section. An eviction filed without that notice, or with less notice than required, does not comply with the PTFA. A tenant with an existing lease generally gets to stay through the end of the lease term, not just 90 days.
The one exception: if the new owner intends to occupy the unit as their own primary residence, the tenancy can still be ended on 90 days' notice even though a lease is in place, per the same source. In practice, this means the length of protection depends on two facts: whether a written lease exists and what the new owner plans to do with the property. A month-to-month tenant without a lease gets the 90-day floor; a tenant with a year left on a lease, facing a buyer who plans to rent the unit out rather than live in it, can stay for the rest of that year.
Section 8 Tenants and State Law Add-Ons
Tenants holding a Section 8 Housing Choice Voucher have additional protection beyond the 90-day notice rule. The foreclosure purchaser takes the property subject to the existing Section 8 lease and the housing-assistance-payments contract already in place, according to the National Low Income Housing Coalition. That means a voucher holder's lease terms generally carry over to the new owner rather than resetting.
The PTFA sets only a federal minimum, not a ceiling, so it never cancels out a stronger state or local protection, per the Oregon State Bar Consumer Law Section. Washington State is one example: tenants there get a separate 60-day notice before a foreclosure trustee's sale can lead to their displacement, layered on top of the federal 90-day rule, according to Washington Law Help. A renter facing eviction after a foreclosure should check whether their state adds requirements the PTFA does not cover on its own.
What to Do if You're Sued for Eviction After a Foreclosure
A tenant served with eviction papers after their rental home was foreclosed has specific facts worth gathering before responding in court: Raising the PTFA's notice requirement is a defense that can be presented in the eviction case itself; it does not require a separate lawsuit. A tenant who was not given the required notice, or who had a longer lease term than the new owner is honoring, has grounds to challenge the eviction on that basis alone.
- The date the foreclosure sale or transfer of title occurred, and the date on the eviction notice — the 90-day clock runs from when notice is given, not from the foreclosure sale itself.
- Whether a written lease exists and what term remains on it.
- Whether the new owner has stated, in writing, an intent to occupy the unit as a primary residence.
- Whether the tenancy fits the bona fide test — an independent lease, no family relationship to the former owner, and rent at or near market rate.
- Whether a Section 8 voucher or other subsidy applies to the lease.
Frequently Asked Questions
Does the PTFA apply to every foreclosed rental property?
It applies when the foreclosed loan is federally related and the tenant meets the bona fide tenancy test — an arm's-length lease, no family tie to the former owner, and rent near fair market value, as described in the Maryland court opinion.
Can a new owner ever evict a tenant in less than 90 days?
No. The 90-day written notice is the floor regardless of circumstances; the only variable is whether the tenant can stay longer, through the end of a lease, unless the owner plans to move in as their primary residence.
Did the PTFA ever stop applying nationwide?
Yes. It expired December 31, 2014, under its original sunset clause and left a gap until Congress made it permanent on May 24, 2018.