Even though the mortgage isn’t under their name, renters have also been victimized by foreclosures.

This situation started at the beginning of the foreclosure crisis when individuals and families renting homes were evicted were no advance notice, after the property had gone into foreclosure. Many of those tenants had been paying their rent on time and had no idea that the property was at risk of foreclosure until they received an eviction notice.

This issue was discussed today at a forum during the 2009 REALTORS Conference & Expo. During this panel discussion, experts discussed the impact, liability, and ethical issues of foreclosure on single-family and multi-family rental housing. These consequences are faced by property owners, managers, and tenants. According to data from the National Low Income Coalition, 40 percent of families facing foreclosure are renters.

“Realtors build communities and are working to reduce the impacts of foreclosure on all community members – homeowners and renters alike,” Charles McMillan, National Association of Realtors (NAR) president, said. “Our goal is to help keep people in their homes, but if a sale can’t be avoided, it’s important that rights of renters are protected as much as the owners.”

The Helping Families Save their Homes Act of 2009, signed into effect in May 2009 by President Obama, includes provisions to protect tenants from eviction after their rental property enters foreclosure. Panelist Charles Achilles, VP of legislation and research for the Institute of Real Estate Management, explained that under this new law, tenants must be given 90 days notice prior to eviction.

Depending on state law, tenants are allowed to stay in the property through the end of their lease. This is not allowed if the new owner wants to occupy the property as a personal residence or in cases where no lease is in place. While many states already have laws in place protecting tenants, this new law preempts the existing state laws, unless greater protection is offered by the state’s laws.

In an effort to reduce the potential liabilities and ethical issues facing tenants and property managers during foreclosures, receiverships are often used. Stan Mullin of California Real Estate Receiverships said they are incredibly beneficial and are often used in disputes between two parties. Real estate receiverships, appointed by the court, work with the owners, tenants, and property manager to ensure the property doesn’t become neglected and help parties come to an agreement on the course of action to be taken. While receiverships usually last several months, they can be extended for more than a year.

Currently, there are various initiatives availably to help owners and tenants during the foreclosure process. According to panelist Gabe Del Rio of Community HousingWorks in San Diego, California, these clinics have helped more than 3,500 consumers.