If I live in a home that is in foreclosure but I didn’t find out until after I signed a 12 month lease, do they have to honor it?

UPDATED: May 24, 2012

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If I live in a home that is in foreclosure but I didn’t find out until after I signed a 12 month lease, do they have to honor it?

Asked on May 24, 2012 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Foreclosure, unlike a voluntary sale (even a short sale) terminates leases; once the home is foreclosed upon and the owner you signed the lease with is no longer the owner, the lease is terminated and you can be evicted--though laws passed since 2009 to protect tenants in situations like yours should give you at least 3 months of residency.

If the homeoner knew he was in or going into foreclosure at the time you signed the lease but did not dislose that fact, he likely committed fraud (the intentional or knowing mispresentation of a material, or important, fact). That fraud could give you the right to void the lease and/or sue for monetary compensation (such as the cost of having to move out).

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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