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May 27, 2009 -- New law protects renters after landlord foreclosure

Clark has been on the air since 1987 and never can he recall a time when Washington D.C. has been so pivotal in the life of American capitalism.

Here's yet another example of this continuing trend. There's a new federal housing law on the books that provides protection for tenants who are current on their rent while their landlords are facing foreclosure.

The law permits you as a paying tenant to stay for the remainder of your lease, plus an additional 90 days. The foreclosing bank essentially becomes your landlord and tells you where to mail your check. This is a sea change. Where we previously had scattered state laws, now we have one national code.

And if you're renting without a lease, you'll get a 90-day notice of eviction.

Clark is steering clear of addressing this as yet another instance of federal intervention in the free market. Yet he maintains that the system we had in place was not adequate. Paying renters previously could find themselves on the street in as little as 5 days after their landlord was served with a foreclosure notice.

It's possible that some smaller lenders may not be aware of the new law as they're in the foreclosure process. If that's happening to you, you can file a written appeal and have your day in court to present the judge with information about the new law.

Meanwhile, do you suspect you might be paying too much for rent in your area? Now there's an online tool that lets you know if you're right. It's called RentoMeter.com. If it turns out you are overpaying, the website will even suggest alternate nearby locations that have lower rents! Of course, it won't be accurate 100% of the time.
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