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Tenants Have New Rights If Landlord Foreclosed On
by: Texas RioGrande Legal Aid - Austin

In the past tenants who are foreclosed on because the landlord did not pay the mortgage are forced to leave by the new owner (which is often the bank). Tenants in Texas used to get 30 days to move regardless of how much time is left on their leases. In May 2009, a federal law went into effect that requires new owners to honor all leases (that were bonafide leases between the tenant and former landlord). The only exception is that if the new owner plans to occupy the premises as his primary residence, then the new owner does not have to honor the lease, but can instead give the tenant a 90 day notice to vacate. If the lease was month to month, or had less than 90 days to go before expiring, a new owner still had to give 90 days notice to the tenant to vacate. This new law applies to any type of residential property (apartment complexes, duplexes, condos, even mobile homes that are foreclosed on, with a tenant leasing). A tenant must of course keep paying his rent and otherwise honor the lease agreement otherwise the new owner can terminate the lease and start eviction procedures as in a normal landlord-tenant situation.

Last Reviewed On: 09/04/09

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