Forty percent of families facing eviction due to the homeowners foreclosing are renters. There are more than a dozen states that require tenants to receive notifications of eviction. With so many families being kicked out of properties that they were unaware were foreclosed, the congress is trying to come up with a law that will protect tenants especially when they are paying on time every month and are completely unaware of any foreclosure happening.

A proposed law would entitle the renter at least 90 days notification so that they can look for a new place to live. They will also not be expected to pay for the next three months while in the home. This would be required throughout the country. In New Jersey, Massachusetts, and Washington DC they require buyers of foreclosed properties to honor the contract signed between the original owner and the renters. In other words, it is allowed for the renters to stay for the full term of their contract. This is not liked too much by the lenders in particularly since they end up having to be the landlords and clean up everything before the buyer moves in.

Mortgage lending corporations Fannie Mae and Freddie Mac are allowing renters to pay month to month until the home is sold. Then the renters will be notified and will be given a month or so to move out.