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June 19, 2012: NHLP Advocacy Brings Appellate Victory to Tenant

In a victory for renters in foreclosure, the Fifth District of the Texas Court
of Appeals reversed itself to hold that the federal Protecting Tenants at
Foreclosure Act requires foreclosure purchasers to honor existing leases.

The Court of Appeals was asked whether Jarvis Fontaine, a tenant with a
three-year lease, may be prematurely evicted with a 90-day notice before
the expiration of the lease. In its initial opinion, the court overlooked the
lease protections in the Protecting Tenants at Foreclosure Act and agreed
with the plaintiff Deutsche Bank that a 90-day notice was sufficient.

After learning of the initial opinion, NHLP and Texas Housing League
submitted an amicus brief urging the court to reconsider its decision.
Agreeing with the argument raised by NHLP and allies, the court issued
a new opinion that more faithfully followed the PTFA, holding that under
the PTFA, “the successor in interest takes the property subject to the
tenant's rights under the lease to occupy the premises until the end of the
remaining term of the lease.”

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