renters in trustee sale

[Will G.]

Hi all,
I just purchased a property via trustee sale at the county courthouse steps in texas, and then learned that the previous owner agreed to rent the property to a couple before the sale. Do I have to honor that lease agreement or can I ask them to leave?

[Jon Holdman]

Normally, the foreclosure will wipe out the lease. However, there is a provision in the Preventing Mortgage Foreclosures Act (see TITLE VII—Protecting Tenants at Foreclosure Act, section 701) that may apply. If the lease predates the foreclosure notice, they have 90 days to move out. If the lease was made after the foreclosure notice, they don't have the 90 days.