I just recently had a former tenant client call me. She said: “I just had a lady knock on my door saying that she can help with the house.” My client of course didn't understand what was going on. The lady then told her that she can pay cash for the house and close quick. My client, the tenant of course still didn't understand.
The lady went on to explain that the property they are living in was posted for foreclosure in May. My client was stunned. They just had renewed their lease contract for another year with the property management company.
Not knowing what else to do she called me. We have worked with several foreclosures and short sale situations, but have never represented a tenant.
The following week she called her property management company that according to them didn't have the slightest idea of the foreclosure either.
We talked to the Austin Tenant's Council and several lawyers on how to handle the situation. They didn't want to risk breaching their lease but at the same time were terrified that they might get thrown out of their house in a couple of days.
Here are the suggestions we got from our lawyers. (Remember I am not an attorney so this info is just what I received. If you are in a similar situation, make sure you check with your attorney, landlord, property management company etc.)
• My clients are bound to the lease. Leaving the house now might mean a breach of lease.
• If the property is bought at auction by an investor there might be a chance for them to be able to stay in the house.
• If the property goes to a new owner/bank that wants my clients out, the new owner will have to start the eviction process by sending a notice to vacate the property. At this time they can talk to the new owner and negotiate some time for them to find something new and move out without getting evicted by a judge.
You can find more information on the Austin Tenants Council website: www.housing-rights.org
For my client, the property management company was finally able to get a hold of the landlord who confirmed that the property will get foreclosed on and who also already lost a house to foreclosure a couple of months ago.
So we are off hunting for houses again.
Iliane Borge
512-961-6545
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