Tenants in foreclosed Florida properties have real federal protections that many people do not know about. If your landlord is losing their property to foreclosure, you are not automatically required to leave the day the gavel falls at the foreclosure auction. The Protecting Tenants at Foreclosure Act (PTFA) gives you specific rights that override shorter notice periods under Florida state law. Understanding those rights can be the difference between a chaotic eviction and an orderly transition.
This guide covers what the PTFA requires, what makes you a protected bona fide tenant, how the 90-day notice works, and what happens to your security deposit when a property forecloses. For context on what the full Florida foreclosure process looks like from start to finish, see our process overview.
What Is the Protecting Tenants at Foreclosure Act (PTFA)?
The Protecting Tenants at Foreclosure Act was originally enacted in 2009 as part of the Helping Families Save Their Homes Act (Pub. L. 111-22). After initially expiring in 2014, Congress made the PTFA permanent in 2018. It is federal law and applies throughout all 50 states, including Florida.
The PTFA was passed in response to the foreclosure crisis, during which many tenants renting homes from individual landlords suddenly found themselves facing eviction through no fault of their own. The Act established a federal floor of protection that no state can go below -- states can give tenants more rights, but not fewer.
The two core protections the PTFA provides are:
- A minimum of 90 days written notice before a tenant must vacate after a foreclosure sale.
- Protection of bona fide leases that extend beyond the 90-day period -- the new owner must honor the lease until it expires, with one exception.
The 90-Day Notice Requirement
After a foreclosure sale closes and a new owner takes title, that new owner must give any bona fide tenant at least 90 days advance written notice before the tenant must vacate the property. This is the federal minimum.
Before the PTFA, Florida's F.S. 83.561 required only 30 days notice after a foreclosure. The PTFA replaced that 30-day window with a 90-day federal minimum for protected tenants. You can learn more about how Florida's pre-PTFA rules compared in our guide to what happens to tenants in Florida foreclosure.
The 90-day clock runs from when written notice is actually delivered to the tenant -- not from the date of the foreclosure sale or the date the new deed is recorded. The new owner cannot retroactively count days from the auction. A tenant who receives written notice on the day of the foreclosure sale has 90 days from that date.
Bona Fide Lease Protection: Staying Longer Than 90 Days
If you have a written lease that runs longer than 90 days after the foreclosure sale, the PTFA requires the new owner to honor that lease until it expires -- not just give you 90 days. This is one of the most important and least understood protections in the PTFA.
The one exception: if the new owner (the foreclosure sale purchaser) intends to occupy the property as their primary residence, they can give the tenant a 90-day notice to vacate even if the lease has not yet expired. But they cannot simply terminate a valid lease the day they take title.
For the lease to receive this protection, you must be a bona fide tenant (see below). A"lease" that was created on the eve of foreclosure at below-market rent with a family member of the borrower is not a bona fide lease and does not receive PTFA protection.
What Makes You a Bona Fide Tenant Under the PTFA?
Not every person living in a foreclosed property qualifies for PTFA protection. The Act protects bona fide tenants who meet all three of the following conditions:
- You are not the mortgagor (the borrower who defaulted on the loan) and you are not the child, spouse, or parent of the mortgagor.
- Your lease or tenancy resulted from an arms-length transaction -- meaning you did not get the lease through a special arrangement designed to exploit the PTFA.
- Your rent is not substantially below fair market rent for the unit. (An exception applies if the rent is subsidized by a government rental assistance program.)
If you are an unrelated third party renting at market-rate rent under a standard written lease, you are almost certainly a bona fide tenant. To protect yourself, keep your original signed lease, all rent receipts or bank records showing payments, and any correspondence with your landlord.
You can read more about your specific rights as a Section 8 or housing voucher tenant in our guide on Florida foreclosure and Section 8 tenant rights.
Florida Law Before and After the PTFA
Before the PTFA became permanent law, Florida Statute 83.561 was the primary protection for tenants in foreclosed properties. It gave tenants 30 days notice after the foreclosure sale. The PTFA's 90-day federal minimum now controls for bona fide tenants, making the Florida 30-day provision effectively obsolete for those who qualify.
Florida can enact additional tenant protections on top of the PTFA -- and Florida does have other landlord-tenant protections under Chapter 83, Florida Statutes -- but no Florida law can give a bona fide tenant less than the 90-day federal minimum after a foreclosure sale.
How the Written Notice Must Be Given
The PTFA requires written notice. A new property owner cannot satisfy the PTFA by knocking on your door and verbally telling you to leave. The notice must be in writing, must state the date by which you must vacate, and must give you at least 90 days from the date of delivery.
If you receive a notice of any kind after a foreclosure, save it and note the date you received it. If someone delivers notice verbally or demands you leave immediately after the auction, that does not comply with the PTFA. You should not abandon the property in response to an unlawful demand.
After the 90 days have passed (or after your bona fide lease expires), the new owner would need to go through the formal eviction process in Florida court to remove you. The writ of possession process in Florida has its own timeline and procedures that provide additional due-process protections.
What Happens to Security Deposits After Foreclosure?
Your security deposit is your money, and a foreclosure does not simply wipe it out. Under Florida law, when a rental property is sold or transferred, the landlord is supposed to either transfer the security deposit to the new owner or return it to the tenant.
In practice, security deposits in foreclosure situations can become complicated because the former landlord (the borrower who lost the property) may no longer be reachable or cooperative. The new owner at the foreclosure sale is generally not automatically liable for a security deposit they never received.
To protect yourself, document your security deposit thoroughly:
- Keep a copy of your original lease showing the deposit amount.
- Keep bank records or receipts showing you paid the deposit.
- After the foreclosure sale, ask the new owner in writing whether they received your deposit.
- If the deposit was not transferred, pursue the former landlord for its return.
Tenant Rights During the Foreclosure Proceedings (Before the Sale)
The PTFA protections apply after the foreclosure sale, when title passes to a new owner. But what about your rights during the foreclosure lawsuit itself, before the auction takes place?
During the foreclosure proceedings, your lease remains valid. The foreclosure is a dispute between the lender and the borrower -- it does not terminate your tenancy while it is pending. You are still entitled to quiet enjoyment of the property, and your landlord is still obligated to maintain the property and comply with your lease terms.
Some tenants receive a notice of foreclosure suit (they may be named as defendants for the purpose of extinguishing their tenancy interest). Do not ignore any court documents. See our guide on what happens after the Florida foreclosure auction for the post-sale timeline.
You may also receive a cash for keys offer from the new owner or the lender before or after the sale. This is a voluntary arrangement in which you agree to vacate by a certain date in exchange for a payment. You have no obligation to accept a cash-for-keys offer, but it may be worth considering if the offer is reasonable and the timing works for your situation.
For more on the notice that precedes the auction, see our post on the Florida foreclosure notice of sale and our overview of the Florida foreclosure timeline.
What the New Property Owner Must Do After the Sale
After taking title at the foreclosure auction or through a certificate of title, the new owner steps into the former landlord's shoes in certain respects. Under the PTFA, the new owner:
- Must provide at least 90 days written notice before requiring a bona fide tenant to vacate.
- Must honor bona fide leases that extend beyond 90 days (unless they intend to occupy as primary residence).
- Must follow Florida eviction procedures if a tenant does not vacate after proper notice.
A new owner who tries to force a tenant out immediately -- by changing locks, shutting off utilities, or removing belongings -- is committing an unlawful eviction under Florida law regardless of what the foreclosure sale documents say.
Barrett Henry on Florida Tenant Foreclosure Rights
Barrett Henry is a Broker Associate at REMAX Collective with 23+ years of real estate experience throughout Tampa Bay. Over those years, he has worked alongside tenants living in properties that went through foreclosure -- helping them understand their rights and their options during the transition.
In many cases, tenants in foreclosed properties are caught completely off guard when they learn their landlord lost the home. The PTFA gives those tenants real protection and real time to make alternative arrangements. The 90-day minimum -- and the right to stay through a bona fide lease -- gives renters enough runway to find a new place without being forced onto the street.
If you are a property owner facing foreclosure and have tenants in your home, Barrett can also help you explore whether a pre-foreclosure sale or short sale might allow all parties -- including your tenants -- to be treated fairly in the process. Options to stop foreclosure in Florida exist even when tenants are involved.
Are you a tenant in a foreclosed Florida property and need guidance? Contact us today for a free consultation.
