tenant's rights in a foreclosure situation


In Texas can a tenant purchase the home they live in directly from the lender if the landlord is in default of the mortgage and the lender is starting the foreclosure process? And if so, what are suggested procedures and actions to take if the landlord is unable to be located AT ALL?

I was thinking a possible “subject to” situation would be feasible with the filing of a grant deed; however, it requires the signature and, in turn, the presence of the landlord. Neither the tenants nor the management company can locate the landlord anywhere. And the management company doesn’t seem to be knowledgeable enough to assist in the matter.

*** I apologize if this message was misposted in the wrong forum, but any information would be helpful.

The owner is the owner, not the lender. You can’t make a person sell his house. If he wants to let the house go to foreclosure you can’t make him sell. If the owner can’t be found, you may just have to wait until the house is foreclosed on and then buy it from the bank.

Is there no “landlord abandonment”? It just seems logical that a tenant would have right to at least present the issue to the lender and/or the courts along with an offer, so-to-speak, to purchase the property since it’s the tenant that suffers the headache and expense of being made to vacate.

Also, does the removal of the occupants after a foreclosure sale affect the tenant’s credibility with the bureaus or the courts in any way? I’ve been in the business of investment servicing for the past few years and I’ve never encountered a situation like this.

My good friends are asking for my help and I’ve just run into barrier after barrier with the way the whole thing is going. I’ve been able to locate several properties owned by the same landlord, but have been unable to retrieve any phone number and the contact/mailing address provided on the tax roll doesn’t seem to exist.

This may answer some questions, but they may try to contact their local tenants advocacy group. They should be familiar with the situation as this is happening more and more.


Sorry here’s the link