Can a lease be taken away from a foreclosure?
Can a lease be taken away from a foreclosure?
Take Away If you take a property based on ownership via a previous foreclosure, check again; if you own a lease covering foreclosed property, the lease may not be gone. If you loaned money against a property with minerals, you may not have the minerals.
What are the rights of a tenant in a foreclosure?
Many state laws give important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial downturn resulted in thousands — no, make that millions — of foreclosed homes.
When do you have to honor a lease on a foreclosure?
Also, many states and municipalities continue to provide the same protection. As a result, if you are buying a home that you intend to use as a rental, if it was foreclosed on after May 19, 2009, and it comes with a lease-holding tenant, it’s likely that you’ll have to honor the lease. Local laws may come into play, too.
Can a lease survive a foreclosure in Texas?
Two recent federal foreclosure cases applied Texas law and one highlighted a fact situation that may involve a new (2015) statute. In Arbuckle v. Chesapeake, Case No. 3:14-CV-04584-M (N.D. Texas, Dallas Division September 18, 2017). Chesapeake (CHK) took oil and gas leases on properties on which there were existing mortgages.
Take Away If you take a property based on ownership via a previous foreclosure, check again; if you own a lease covering foreclosed property, the lease may not be gone. If you loaned money against a property with minerals, you may not have the minerals.
What happens if a property goes into foreclosure?
From the tenant’s perspective, they have signed a lease₁ and are current on the rent. So what happens if the property goes into foreclosure?
Many state laws give important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial downturn resulted in thousands — no, make that millions — of foreclosed homes.
Also, many states and municipalities continue to provide the same protection. As a result, if you are buying a home that you intend to use as a rental, if it was foreclosed on after May 19, 2009, and it comes with a lease-holding tenant, it’s likely that you’ll have to honor the lease. Local laws may come into play, too.