Tenants of bank owned rentals in the U.S, including those in Houston, Texas, are being made to leave their homes once the property they live in is foreclosed. Despite paying their rents regularly, these tenants remain unprotected and are being made to suffer for something that is not their fault, real estate analysts have revealed.
Renters of Houston bank owned properties will be glad to hear that there are actually laws that provide them with some protection, although majority of U.S. renters are not aware of the existence of these regulations.
Those who rent units in bank owned properties in Texas and in other parts of the U.S. can find solace from two existing laws; Protecting Tenants at Foreclosure Act and House Bill 243. The former requires landlords to provide advance notice to their renters of upcoming foreclosures sales and to give them three months to move out or use their remaining lease period, whichever is longer.
On the other hand, owners of bank owned rentals and other for-rent properties are required under House Bill 243 to notify renters of their federal rights as specified under Protecting Tenants at Foreclosure Act through mails or by posting notices on their doors. Renters should also be notified to keep them from paying their rent beyond the necessary period.
Lawyers have revealed that most renters are not aware that these laws exist and that low-income tenants are the most common victims of evictions once the properties they are renting become bank owned foreclosed homes for sale. They added that it would be best for renters of properties facing foreclosures to check the city recorderís office for ownership details and whether they should pay their rent to the landlord or the mortgage company.
Real property experts have encouraged tenants of bank owned rentals to find out what their rights are to protect themselves from potential foreclosure effects. They also added that tenants cannot rely on their landlords to tell them of their rights as most landlords opt to conveniently ignore these laws and pretend that they do not exist.