The tide of foreclosures has sparked a couple of changes in the laws. IMO, a few more need to change as well, but I'll address those later.

Anyway, here's what's new: Effective June 4, 2009, the trustee in a foreclosure has to provide the owner (if the owner lives in the house) with a "You Are in Danger of Losing Your Property" notice. The trustee must then record an affadavit that the notice has been sent. This notice will contain resources for contacting the lender, as well as other agencies, to assist the owner in protecting his or her rights.

If the grantor claims he or she did not receive the notice, he/she has 60 days to notify all parties of the claim.

In technical terms, the trustee has to notify the grantor of the trust deed, but that's generally the owner.  In Trust Deed Speak, the lender is the beneficiary, the borrower is the grantor and the firm or person enforcing the trust deed (often a title company) is the trustee. Got that?

The above is a state law.  A new federal law protects tenants renting a home being foreclosed on. If whoever is buying the home at the public sale intends to use the home as a primary residence, he or she must give the tenant a 90-day notice to vacate, assuming the tenant was pre-existing and had a lease. If the new buyer does not use the property as a primary residence, the tenant may remain for the entire lease period. There are some modifying details describing who the tenant is and what exactly the lease has to be.