What rights do I have as a tenant leasing a home that is now in for closure

UPDATED: Sep 30, 2022

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What rights do I have as a tenant leasing a home that is now in for closure

I have noticed different people coming
to the home I am leasing taking
pictures. When i asked about it I was
told the mortgage had not been paid in
a very long time. I have been
receiving mail from the home owners
association too. When i called all they
would tell me is the HOA had not been

Asked on January 31, 2017 under Real Estate Law, Texas


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Federal law gives some rights and protections to a tenant in the event that their rental goes into foreclosure. Tenants who have a written lease can continue to occupy their unit until the end of the lease period, or 90 days, whichever is longer. The exception would be if the new owner intends to move in and occupy the home as their primary residence, in that case, a 90 day notice to move applies. Additionally, if state law provides more protection than federal law, state law applies. However, even if a foreclosure action has already been filed, as long as the landlord remains the owner of record (i.e. is still on the title to the property), the tenant must continue paying rent to them. Therefore, a tenant must be careful to find out just when title to the property passes at auction or otherwise. Former landlords have been known to try and continue to collect rent even after they no longer own the property. As a lawful occupant of a property in foreclosure, a tenant should be notified by the mortgage lender as to the sale/transfer date of the property. After this time, the landlord will no longer be the legal owner, so the tenant should be informed where to send their rental payments by the new owner. Sometimes an incentive can be negotiated between a new owner and a tenant so that the tenant agrees to move out early; it is known as “Cash for Keys”. Pursuant to this, the owner will pay a tenant to leave the property in exchange for a cash payment.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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