Home Buying in Dallas>Question Details

Tom Ennis, Home Buyer in Oxnard, CA

Currently renting a house and the short sale is scheduled for July 7th. How much time do we have before being asked to move out?

Asked by Tom Ennis, Oxnard, CA Thu May 19, 2011

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6
Tom,

I would ask the realtor selling the house and see if they will put you in touch with the buyer's agent.
Maybe the new buyer wants to rent it to you as well?
So maybe you will not have to move out.

If the closing date is July 7th, then it could be you have to get out that day, or shortly thereafter.

Have you asked the seller about what will happen with your deposit?

Let me know if you need help looking for a new place to rent.

You can search homes for rent on the link below.

Bruce Lynn
Keller Williams Realty
0 votes Thank Flag Link Thu May 19, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I would recommend to start looking now

Contact my office I specialize in Dallas home rentals I need to know more about what your specifications are

Direct LInk http://www.lynn911.com/Web/AR287090/CustomContent/index/5041417

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu May 19, 2011
Obviously, you are going to have to ask an attorney, because I am going to tell you the opposite.

Foreclosures terminate claims to the property that are junior to the lien being foreclosed. This means if a second mortgage is not paid, the lender steps in and forecloses, then the property is cleared of all mechanics' liens and other similar claims, but the first mortgage and any tax liens remain in place. Similarly, if the first mortgage is foreclosed, only the tax liens run with the land.

Note that the old owner can't stay there and renters can't, either. They could be removed in a forcible detainer suit after foreclosure. The lease is a junior claim.

A short sale is a normal sale between old owner and new buyer. The action of quenching junior liens of foreclosure does not happen. The lender is not entirely happy because he winds up "short" on the payoff, and typically the second lien is even "shorter". However, claims are not quenched by a short sale. Banks usually document their release of lien and forgiveness, if any. Often they issue a non-cash "1099" to the old owner for the difference between the balance and what was received, and/or pursue the old owner for the deficiency. The newer Federal law helps the old owner somewhat. Junior liens keep on running, including mechanics and so on. The title company will report what liens and other claims don't get cleared off in the short sale before closing.

But, the lease, which does run with the land, survives the short sale. The new owner can ask the tenant to move on, but I do not believe there is any power to force him out, except a violation of the existing lease. That lease is then conveyed to the new owner, who is fully responsible for all its provisions.

If the old owner skipped with the security deposit, new owner, you'd better look out - you're on the hook for it. If the tenant did not pay rent because the short sale was pending, he's outta there. He breached the lease. Of course a court has to find all this to be true = there is no non-judicial eviction. And an attorney is a good investment. He'll tell you about the law and the particulars in this case. We can't advise you.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Thu May 19, 2011
To avoid any separation anxiety I would be looking for a place now instead of waiting, and pack, to be prepared to move since you're going to have to go anyway, do it at your convenience instead of being under the gun to find something fast.
0 votes Thank Flag Link Thu May 19, 2011
ummm, I think you should check with an attorney. If a property is sold as a "short sale" or a "foreclosure" in Texas the NEW buyer does not have to honor the lease in place at the time of purchase. This is only for a "short sale" or a "foreclosure" property ONLY. Again, I think you should contact an attorney for verification.

BEST OF LUCK.

Kenny
0 votes Thank Flag Link Thu May 19, 2011
Tom - the answer is: as long as your lease says...your lease agreement is between you and the current owner of the property. In Texas the tenant has rights :) So, you would be able to stay in the home as long as your current lease agreement with the owner states. Even if the new owner buys the property, he/she will need to respect your contract and has no rights to make you move out. The new owner may however, offer you a new contract or offer you an incentive (Cash) to leave the home early and terminate the lease, BUT you can reject or accept that new offer from the new owner. Bottom line, you don't have to move out until your lease ends.
Web Reference: http://www.SeanParsons.com
0 votes Thank Flag Link Thu May 19, 2011
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