Evicting Tenants After a Foreclosure in Texas

Short answer: If you buy a DFW house or small multifamily property at a foreclosure sale and a renter lives there, federal law — the Protecting Tenants at Foreclosure Act (PTFA) — generally requires you to honor a bona fide tenant's lease through its end date, or give at least 90 days' written notice to vacate if there is no lease, it's month-to-month, or you will live in the property yourself. Texas Property Code §24.005(b) adds its own 30-day rule for foreclosure purchasers, but the longer federal 90-day period controls. A former owner who stays after the sale is different: they are usually a tenant at sufferance and can be given a three-day notice to vacate.

Foreclosure auctions are held on the first Tuesday of every month at county courthouses across North Texas — the next two are November 3 and December 1, 2026 — and investors in Dallas, Tarrant, Collin and Denton counties regularly buy homes that are still occupied. Sometimes the occupant is the borrower who lost the house. Often it's a renter who paid on time every month and had no idea the owner stopped paying the mortgage.

Texas law and federal law treat those two occupants very differently. Get the notice wrong and a justice of the peace in Dallas, Fort Worth, Arlington or McKinney can dismiss your eviction, sending you back to day one with months of carrying costs. Here's how it works.

Who Is Living in the Property You Just Bought?

Before you serve anything, identify which of these three situations you're in:

• A bona fide tenant with a lease — a renter with an arm's-length lease signed before the foreclosure notice, paying rent that isn't substantially below market (or subsidized by a program such as Housing Choice Vouchers).
• A bona fide tenant without a lease, or month-to-month — same as above, but no fixed term.
• The former owner (the borrower), or the borrower's spouse, child or parent — these occupants are not bona fide tenants under the PTFA, even if they claim to be paying rent.

Ask the occupant for a copy of the lease and proof of rent payments, and check the county appraisal district and title records for who owned the property. Document the answer — the judge may ask.

The Federal Rule: Protecting Tenants at Foreclosure Act

The PTFA was first passed in 2009, lapsed at the end of 2014, and was permanently restored by Congress in 2018 (Economic Growth, Regulatory Relief, and Consumer Protection Act, §304), effective June 23, 2018. It applies to foreclosures of residential property and binds the "immediate successor in interest" — the investor who buys at the trustee's sale, or the lender that takes the property back as REO.

Under the PTFA, the new owner takes title subject to the rights of any bona fide tenant:

• Tenant with a bona fide lease: may stay until the end of the remaining lease term. The one exception: if the purchaser will occupy the unit as a primary residence, the purchaser can end the lease with at least 90 days' notice.
• Tenant with no lease or a month-to-month tenancy: must receive at least 90 days' notice to vacate before the new owner can require them to leave.
• Section 8 / Housing Choice Voucher tenants: the new owner generally steps into the lease and the housing assistance payments contract. Contact the local housing authority — such as the Dallas Housing Authority or Fort Worth Housing Solutions — right after the sale.

The PTFA sets a floor, not a ceiling. Where state law gives tenants more time, the longer period applies.

The Texas Rule: Property Code §24.005(b)

Texas has its own foreclosure-purchaser rule. Under Texas Property Code §24.005(b), if a building is bought at a tax foreclosure sale or a trustee's foreclosure sale, the purchaser must give a residential tenant at least 30 days' written notice to vacate if the purchaser chooses not to continue the lease — as long as the tenant timely paid rent and isn't otherwise in default.

A tenant is treated as having paid timely if they paid the month's rent to the old landlord before learning that a sale was scheduled that month, or if they pay the purchaser or foreclosing lender within five days after receiving written notice of the purchaser's name and address requesting payment.

Because the PTFA's 90 days is longer, Texas's 30-day period rarely decides the outcome for a bona fide tenant in a typical home foreclosure. Where it matters most in practice is the payment rule: once you send the tenant your name, address and a written request to pay you, a tenant who doesn't pay is no longer "timely," and you can enforce the lease like any landlord.

What If the Tenant Stops Paying the New Owner?

Buying a foreclosure doesn't mean you have to house a renter for free. A bona fide tenant whose lease you inherited still has to pay rent and follow the lease. If they stop paying after you've given written notice of where to pay, you can pursue a regular nonpayment eviction under Texas Property Code Chapter 24 — starting with a proper notice to vacate.

Two cautions:

• Check the notice period. The default Texas notice is three days unless the lease says otherwise, but if the property now has a federally backed mortgage or is in a federal housing program, the CARES Act 30-day nonpayment notice may apply. See our guide to the CARES Act 30-day notice.
• Keep the paper trail. Save your written payment-instructions letter, the delivery proof and the rent ledger. These are the first documents a judge will ask about.

Evicting the Former Owner After a Foreclosure

When the person still living in the house is the borrower who lost it, the PTFA does not apply. Most Texas deeds of trust state that a borrower who stays after a foreclosure sale becomes a tenant at sufferance, and under §24.005(b) a tenant at sufferance can be given at least three days' written notice to vacate before you file a forcible detainer (eviction) suit.

Some practical points for DFW investors:

• Get the deed recorded first. The trustee's deed (or sheriff's/constable's deed after a tax sale) is your proof of ownership in justice court. Bring a certified or file-stamped copy to the hearing.
• Justice courts decide possession, not title. If the former owner sues in district court claiming wrongful foreclosure, the eviction can often still proceed — but if the judge can't decide who is entitled to possession without deciding who owns the property, the justice court may lack jurisdiction. Expect this defense and be ready to show the deed and the tenant-at-sufferance clause.
• Appeals are common. Former owners frequently appeal to county court to buy time. Understand the bond and rent-deposit rules on eviction appeals.
• Consider cash for keys. A written move-out agreement with a payment at hand-over of keys is often faster and cheaper than a contested eviction and appeal — but put it in writing with a firm date.

What You Can't Do — Even Though You Own the House

Owning the property doesn't let you skip court. Changing the locks, removing doors or appliances, shutting off utilities or hauling out belongings to force an occupant out is illegal self-help in Texas and can expose a new owner to damages and penalties. Read why DFW landlords can't legally lock out a tenant.

If the occupant is someone with no connection to the lease or the former owner — a squatter or unauthorized occupant — that is a separate procedure; see how to evict someone not on the lease in Texas.

A Step-by-Step Checklist for DFW Foreclosure Buyers

1. Identify the occupant — bona fide tenant with a lease, month-to-month tenant, or former owner/family member.

2. Send a written introduction letter with your name, address and where to pay rent. This starts the five-day payment window under §24.005(b).

3. Choose the correct notice: honor the lease, serve a 90-day notice (PTFA), or serve a 3-day notice to a former owner who is a tenant at sufferance. Use a professionally prepared eviction notice and follow Texas delivery rules — see notice to vacate requirements in Texas.

4. Wait out the full notice period before filing.

5. File the eviction in the justice court precinct where the property is located, with the recorded deed and your notice attached. Our team handles eviction filing and the court process across Dallas, Tarrant, Collin, Denton and surrounding counties.

6. Obtain the writ of possession after the judgment becomes final, and coordinate with the constable — see our Dallas writ of possession service. Any belongings left behind must be handled under §24.0061; see what happens to a tenant's belongings after eviction.

How NTX Eviction Helps Foreclosure Buyers in DFW

Investors buying at the Dallas County, Tarrant County, Collin County and Denton County foreclosure auctions — or picking up bank-owned homes in Garland, Mesquite, Grand Prairie, Irving, Frisco and Denton — call us to sort out who is in the property and which notice applies before anything is served. We prepare and deliver the notice, file the case, appear at the hearing and coordinate the writ with the constable.

Request a consultation or call 214-206-4229 to talk through your property with our team.

This article is for general informational purposes, not legal advice. NTX Eviction is not a law firm. Foreclosure and title disputes can involve issues a justice court cannot decide; consult a licensed Texas attorney about a specific property.