Authored By: Texas RioGrande Legal Aid
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If you are a tenant in a house that has been foreclosed, federal law (the "Protecting Tenants at Foreclosure Act") requires the new owner after a foreclosure sale to allow you to occupy the property until your lease expires. There are three exceptions to this rule:

1. If the property was sold at the foreclosure sale to a purchaser who will occupy the unit as a primary residence, then your lease can be terminated by the new owner with a 90 days written notice to vacate.

2. If your lease has fewer than 90 days remaining pursuant to the terms of the lease, then the tenant must still receive written notice granting 90 days to vacate the property.

3. If the term of your tenancy is not defined because it is a month-to-month tenancy or a tenancy at will, then the new owner must provide you with written notice granting 90 days to vacate the property.

Of course, it is your choice whether or not you want to remain in the lease. If you want to stay, you should provide the new owner with a copy of your lease, and you should timely pay rent that is due.

You do not qualify for these protections if you are the prior owner of the house or a member of the prior owner's family, or if you pay substantially less than the market rate of rent. This law expires at the end of 2012.