SB22: Amendment would protect Utah renters during foreclosure

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SALT LAKE CITY – A Taylorsville senator has been introduced a bill that would allow renters to remain in their homes for the duration of their contract, regardless of whether the home becomes foreclosed.

Sen. Wayne Harper, R-Taylorsville, is sponsoring SB22 which would protect Utah renters during foreclosures on rental properties. When a residential property that is being rented goes into foreclosure, the renter must be notified that the property is under foreclosure in a conspicuous space. Alternatively, everyone in the building must be informed by mail that it is under foreclosure.

A bill to help Utah renters still faces one more vote in the Utah Senate. (Al Hartmann/The Salt Lake Tribune via AP)
A bill to help Utah renters still faces one more vote in the Utah Senate. (Al Hartmann/The Salt Lake Tribune via AP)

Under current law, people would be notified the day of the sale that they needed to move out.

The bill would allow renters with modified leases to continue to occupy the property until the lease ends. For non-modified leases, there are built in time periods of how long they have to move out.

Some expressed concern about the bill when it was heard on the Senate floor Jan. 25.  Sen. Scott Jenkins, R-Plain City, wondered if the bill would allow occupants to take advantage of homeowners by continuing to occupy the property.

Harper addressed those concerns: “These are rental units like a four-plex. So, if it’s foreclosed, the previous owner didn’t pay the mortgage and someone is living in those units and they have a lease that goes on for another six months, this allows them to go through and fulfill their lease before they are kicked out,” Harper said.”We’ve been doing this the last five years and we’re just bringing it in house.”

The bill faces one more vote before it will pass the Senate and move on to House consideration.

 

 

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