Houston attorney Paul Sternberg addresses the implications tied to foreclosure on currently occupied residential rental properties.
HOUSTON, TX, UNITED STATES, November 29, 2018 /EINPresswire.com/ — According to Houston attorney Paul Sternberg, a residential tenant's lease agreement is never more important than when a rental property is foreclosed on. When a real estate owner, landlord, or investor opts to sell a property, he says, the current tenant or tenants will typically find themselves in the often unenviable position of having to search for another home to rent, depending on the intentions of the purchaser.
"For many, however," says Sternberg, an experienced attorney and real estate investor based in Houston, Texas, "how quickly they must vacate the property is often the source of confusion for existing tenants."
Dealing predominantly with commercial properties, Paul Sternberg has found himself answering an increasing number of queries from concerned residential tenants worried about pending foreclosure on their rented homes.
"It's much more emotional for residential tenants than it is for businesses and commercial occupiers," he explains. There's also a misconceived notion, suggests Paul Sternberg, that upon foreclosure, existing agreements with previous landlords become invalid, since they no longer own or have any rights over the property which is now in the legal possession of another party.
"The good news is," he explains, "that in such situations, any tenant renting a property is protected by what's known as the 'Protecting Tenants at Foreclosure Act of 2009.'"
Sternberg continues, "The 2009 act states that in the case of any foreclosure on a federally related mortgage loan or on any dwelling or residential property, the bank assumed its interest subject to the rights of any bona fide tenant on the date of foreclosure."
Accordingly, any tenant must be offered a minimum of ninety days notice to vacate. "In addition to this, any tenant will also likely be afforded the right to occupy the property until the end of their lease term, where ninety days or more still remain," adds Paul Sternberg of Houston.
Furthermore, where a tenant is renting without a lease, or with a lease terminable at will under state law, he or she would still be entitled to the same ninety days notice to vacate, according to the attorney. "This, in particular, is important to remember under the circumstances," he adds, wrapping up.
THIS ARTICLE SHOULD NOT BE RELIED UPON AS LEGAL ADVICE.
Attorney Paul Sternberg, of Houston, Texas, states and declares that the above text is not offered as legal advice, but is provided as general information. The information contained within may not be suitable for all individuals or situations. No attorney-client relationship is created or implied by the provision of this information, nor does the aforementioned make any warranties, whether expressed or implied, of any kind. To discuss a particular situation in more detail, please contact attorney Paul Sternberg for a consultation by calling 713-392-4322.
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Source: EIN Presswire