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#1680819 - 03/22/12 12:46 PM FDIC Exam question - 90 day notice to tenants
YHWB Offline
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Out there
For an upcoming exam, one of the questions on the CIDR requests the "the 90-day notice sent to tenants being evicted as a result of foreclosure". The way this request is stated, makes me believe there is a stthe 90-day notice sent to tenants being evicted as a result of foreclosure.andard/model form, but I cannot locate one. Is there one?

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#1680835 - 03/22/12 01:03 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
Dani York, CRCM Offline
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TN
Try a Google search of "Protecting Tenants at Foreclosure Act Notice Sample", and you should get several examples.
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#1680953 - 03/22/12 02:56 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
Here4Life Offline
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I just finished an exam & that was one of the questions they asked me to. The bank had not evicted any tenants from our foreclosures. I informed the EIC that if the bank intended on evicting, we would contact our legal council to have the Notice written. She was satisfied with that answer.

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#1680959 - 03/22/12 02:58 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
Kathleen O. Blanchard Offline

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I have worked with some banks where that answer did NOT end the discussion and they were required to have a policy and procedure for this law so that they would know what to do and that there attorney covered all requirements.
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#1680965 - 03/22/12 03:03 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
Dan Persfull Offline
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Bloomington, IN
I can't remember who shared this with me to give them proper credit. This is a modified version of what they shared and this passed our recent exam.

Protecting Tenants at Foreclosure Act of 2009

This law protects tenants from immediate eviction by persons or entities that become owners of residential property through the foreclosure process. The law expires on December 31, 2014.

The fundamental purpose of the Protecting Tenants at Foreclosure Act is to ensure that tenants facing eviction from a foreclosed property have adequate time to find alternative housing.

The Act applies only to a “bona fide” lease or tenancy. Bona fide means:

• The tenant is not the mortgagor or the parent, spouse, or child of the mortgagor
• The lease or tenancy is the result of an arms-length transaction
• The lease or tenancy requires rent that is not substantially lower than fair market rent
• The lease or tenancy requires rent is not reduced or subsidized due to a federal, state, or local subsidy.

Requirements of the Act include:

• The immediate successor in interest at foreclosure must
a) Provide bona fide tenants with 90 days notice prior to eviction
b) Allow bona fide tenants with leases to occupy property until the end of the lease term, except the lease can be terminated on 90 days notice if the unit is sold to a purchaser who will occupy the property.

The bank utilizes the services of its respective legal counsel in the foreclosure process. The bank will work with the respective counsel to ensure the Act is adhered to for applicable properties.
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#1683699 - 03/29/12 04:08 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
Queen Mum Offline
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OK
At our recent exam we were asked for our policy and procedures.

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#1683772 - 03/29/12 05:28 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
terpsfan Offline
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Joined: Feb 2007
Posts: 2,059
was it extended I thought it was set to expire at the end of this year?

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#1683943 - 03/29/12 08:29 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
Oursisnottoreasonwhy Online
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Oursisnottoreasonwhy
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Central Illinois
The Protecting Tenants at Foreclosure Act protects tenants from eviction because of foreclosure on the properties they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, 2014.
http://www.occ.treas.gov/publications/publications-by-type/comptrollers-handbook/ptfa.pdf
Last edited by Oursisnottoreasonwhy; 03/29/12 08:30 PM.
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#1825190 - 06/19/13 06:39 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
reed3065 Offline
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Joined: May 2006
Posts: 16
Slight nuance on the definiton of "foreclosure" ... If we take a property back via deed in lieu of foreclosure, does the PTFA still apply?

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#1825202 - 06/19/13 06:46 PM Re: FDIC Exam question - 90 day notice to tenants YHWB
rlcarey Offline
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Galveston, TX
The date of a “notice of foreclosure” is defined as the date on which complete title to a property is transferred to a successor entity or a person as a result of a court order or pursuant to provisions in a mortgage, deed of trust, or security deed.

I would say you are a successor entity pursuant to provisions in a deed of trust.
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