Help.. I rent and my landlord is being foreclosed on! (Austin: section 8, for sale)

[Verio]

Hello fellow City-Data folks. I need your help here again. Does anyone have any specific Texas/Bexar county information in regards to Foreclosure/Tenant rights?

Help!! When we initially rented this house in April, the landlord had told us that the house was up to date on all payments with the bank. We've never met our landlord, as she resides in California and we live in Texas. The house was rented through a realty company.

Today, 3 gentleman came to the house representing Wells Fargo, and were told to remove debris, mow the lawn, and take pictures outside of the house. They said they were told to do this, because the owner is behind on payments (I'm assuming foreclosure).

Our problem is, at what point in a foreclosure, is the tenants notified? Wells Fargo refuses to talk to me about ANYTHING, including the basic foreclosure process. According to federal law, we're entitled to stay in the house until our lease expires... but how do we get in contact with Wells Fargo at that point? http://www.occ.treas.gov/ftp/bulletin/2010-2a.pdf

No one seems to have the answers or the person to even talk to. No one seems to care, and frankly, I'm fed up. We have rights, and we don't want to come home one day, and see a Sheriff trying to evict us from the house.

According to Wells Fargo, we wont get any notice (since we're not entitled to know) other than an auction company coming by to auction the house off.

I've never missed a payment to the Landlord, and I could care less if she's foreclosed on.

[RGJ]

As much as you probably don't want to hear this, you probably have basically two choices: Hire an attorney and delay or move asap. I think this is becoming more prevalent and some states are changing how a lender may foreclose on tenant occupied houses.

You might check with the realty company to find out whether they were making the mortgage payments on behalf of the owner or where they sending the entire amount(less their fee) to the owner.

[Verio]

The law clearly states that I can stay in the house until my lease expires... but how the heck do I get the law enforced? Wells Fargo wont talk to me.

[RoamingWolves]

Check with the Realtor you are dealing with on this house. While it may be true I doubt the bank guys showing up to prep the house for sale would be the first you hear of it. If you have a contract they cannot simply sell the house with you in it. You are entitled to standard eviction. The fact that you have lived in the location since April provides you that protection regardless of who owns the home. People cannot just kick you out of your home. They cannot tell you that you only have a day to move or any of that crap.

You are also not required to let anyone into your home regardless of who they say they are with unless a cop is with them and says to let them in. It would be the same invasion as the home owner coming in and digging through your crap while your gone. Its a crime.

You may have just had your home cased as a robbery target. If you see them again tell them they need to contact you through a lawyer and the Bexar county court system. Tenant rights are pretty strong and should give you at least a few months before they can get you out as long as you are paying what you agreed to.

Also as said before you will probably have to get a lawyer yourself.

BTW. Until they officially foreclose on the home and take it over they have no rights to be on the property. They cannot talk to you yet. But once they house belongs to the bank they will have to talk to you. Right now the foreclosure is not something they cannot divulge info to you about since its not you that is in foreclosure. Once it becomes a case of you living in the home they just took over a whole other set of things kick in. Have a lawyer ready just in case. But again they cannot force you out of the home short notice and they cannot just come into your home. Standard tenants rights prevail. Just be ready to call the cops and a lawyer when they try to convince you otherwise.

[TexasRedneck]

First thing I'd be doing is talking w/the Real Estate company and the landlord. If the law says you can stay through the end of the lease, then that's good - get an attorney to advise you on how to handle the ongoing rental payments - I'm thinking they'll tell you to set the payments up in an escrow account, but I am NOT sure - it's attorney time. You'll spend a coupla hundred bucks, maybe - and I'll bet that you can deduct that from the rent. But talk w/an attorney ASAP. Look up one that specializes in Real Estate law.

[sapphire]

I'm fairly confident that WF is well aware of the federal law and will comply. Looks like they are supposed to give you 90 days' notice--90 days before your lease is up, or 90 days before they sell the home at foreclosure to someone who plans on making the home their residence. I would find a new place to live regardless. What if the AC breaks? Who's responsible for repairs? I'd get out.

[majormadmax]

Originally Posted by Verio

We've never met our landlord, as she resides in California and we live in Texas.

Hmmmm....your landlord owns property in Texas but lives in California?!?

First, I would do some research here: Texas Tenant Advisor

There's a lot of good info on that site, but they don't offer individual legal help.

Secondly, you may want to read this: TEXAS PROPERTY CODE, TITLE 4. ACTIONS AND REMEDIES, CHAPTER 24. FORCIBLE ENTRY AND DETAINER

Lastly, you might want to read this: Austin Tenants’ Council/Foreclosures

Specifically,

1. What happens to a lease if a landlord is foreclosed on?
A foreclosure terminates the tenant-landlord relationship pursuant to the laws of the state of Texas. This means that the lease contract is terminated at the time of foreclosure. The only exception is Section 8 leases which may remain in force. Seek legal assistance in this situation.

2. How much time does the lien holder have to give the tenant to move out?
The federal Helping Families Save Their Homes Act of 2009 became effective May 20, 2009, and will expire at the end of 2012. The law gives tenants the right to stay in the rental home for 90 days after foreclosure or through the term of their lease unless the property is sold to someone who will occupy the home. If the new owner will live in the home, leases can be terminated with 90 days written notice. The bill provides similar protections to housing voucher holders.

So there is a possibility of you being instructed to move out prior to the end of your lease.

I would also advise legal representation, you'll get lots of good advice on here but you want a real lawyer on your side!

Good luck! M2

[Verio]

Thanks for the advice folks. We only rented since we had never lived in Texas, and wasn't sure on the right areas to live in. Now that we know SA pretty well... it may be time to actually buy a house

[RoamingWolves]

Talk to Wells Fargo. You may be able to get the one your in cheap.

[RGJ]

Due to privacy regulations, Wells Fargo will not speak to you about any of this. If some guys shows up again without a constable or a court order, I would tell them to shove off or you're calling the cops. You will probably get a lot of what I'll refer to as "bottom feeders" who are guys that get the pre-foreclosure listings and will come check out the house. Run 'em off.