Question : What happens to renters when home goes into foreclosure?
Our landlord has not told us the home we rent is in foreclosure. I found out through notices addressed to him in the mail and through a website listing our home in foreclosure. As it is we pay rent a month in advance and have decided to pay on time instead so that we do not lose a whole months rent if asked to leave. Sorry to say we do not trust our renter because he has not been honest with us. When this home sells, how long will we have to find a new place? Also, shouldn't the bank be getting our rent money...especially if rent is more than his mortgage? I am really just concerned about what this means for us and options available? Anyone ever been in this situation?
- asked by jd
All Answers:
Answer #1
Send them a registered letter and ask them what isgoing on then you will have proof that youcontacted them in the event this ends up in courtdocument everything and keep records do not stoppaying rent but do not pay it early either.Usuallywhen a home is foreclosed on the new owner willkeep the previous tenants provided they are a goodtenant.And actually if you like the house/propertythis might be a chance for you to buy it verycheaply maybe even by just assuming the paymentsif the owner now is in that deep maybe they wouldmake a deal with you and you could buy it fromthem.This could be to your advantage.
- answered by dadcat00759
Answer #2
Start looking for another place. I would alsocontact the bank that is foreclosing to explainthe situtation. Once the foreclose, they own theproperty and you are out of there.
- answered by Tim
Answer #3
The two safest things to do are to either moveasap or hire an attorney. Chances are, themortgage company probably doesn't know the houseis being rented out. At some point, they're goingto change the locks on the house & then everythinginside becomes an asset that they can sell to gettheir money back - you don't want to be stuck inthat situation.
- answered by I_Love_McRedneck
Answer #4
I am confused you do not trust your renter? Ithought you were the renter? Who are you really?If you are the tenant then a conversation with thebank is in order and if you want to stay anattorney is the best bet. You might even get tomake an offer on the house. When you call thebank-speak to the loss mitigation department andtell them who you are and that you are living andpaying rent to one of their customers and you wantto know what the bank is planning to do. It willtake about 60 days from the notice that youreceived for them to move forward and you shouldmake some decisions before then. Are you going tomove? Do you want to try to buy the house? Youwill probably get a visit from someonerepresenting the bank soon and some of them have aprogram called cash for keys so they may help youto move.I would be looking for another place tolive as well because the bank will usually put thehouse into a loss mitigation specialists hands andthey may be a REALTOR who wants to sell the houseso you can see, you may be needing a new placesoon. Talk to a mortgage broker and see where youare financially if you want the house. Good luck
- answered by DakB
Answer #5
The rental contract you signed is not with thebank, so you should continue to pay the person yousigned the rental contract with. The bank do notcurrently own the property.If the property goes tosell/auction and someone purchase the property thenew owner will contact you and indicate if theywant to continue rent it or they will occupy theproperty themselves. They should have proof thatthey are the new owners.If the property goes tosell/auction and it does not sell, it will becomebank property, the bank will send a representativethat will make contact with you. If this happensin all probability you will be given a date andtime to move. Most banks don't want hold overtenants. Now this does not mean you can not askthis representative if you can stay and rent fromthe bank, but don't get your hopes up. Sometimesthey say yes. You might also ask therepresentative if you may purchase the property?They might consider this also.I hope this has beenof some use to you, good luck."FIGHT ON"
- answered by loanmasterone
Answer #6
Nothing at first. You have 30 days to vacate theproperty. if the sheriff shows with less than 30days notice you demand to go to court and be heardby a judge. Illegal evictions are not ok but theypay ohhh so much money when you sue. Oh and callthe local news too so they can film you gettingdragged out... spin is everything. If you havebeen given notice that you are being evicted youcan review your options with an attorney butforeclosure usually trumps a lease. I wouldabsolutely hire an attorney and begin legalproccedings against your landlord for breach ofcontract and fraud. Additionally you willprobably want to place a lien on the property forthe amount of your security deposit because if youdon't you'll have to sue to deadbeat landlord forthat money.I don't know your state specific lawbut in California the law is as follows: Defaultedowners in the property after your date ofpossession are given three days notice to quit orpay rent. Month-to-month or less-than-one-yearrenters get thirty days. Renters with a lease ofone year or more get sixty days to pay rent orquit. Good luck
- answered by Chris
Answer #7
Not sure in which state you reside. Almost allmortgage companies I've woked with never enterinto a landlord-tenant relationship with theoccupants (you) after the foreclosure sale of thepremises. So that means moving. :( On a brighternote I've seen realtors assigned to the propertyafter the foreclosure sale approach the occupantsand offer "cash for keys"...that's right, cash inhand to move out and broom sweep clean theproperty thereby avoiding the need to pay thecosts associated with an eviction. This scenariohappens quite often here (WI) when the bank is thepurchaser at the sale. If it's a third partybuyer/ investor ( think gold chain, huge pinkyring, unbuttoned collar, bushy chest hair, hugegut, goatee, terminal middle age crisis, titty barregular, drives an escalade with a set of golfclubs in the back - I'm sorry I digress) this sortof chap will try to have you evicted in a NYminute so he can repaint and throw in some newcarpeting for a quick flip. You can always callthe atty. handling the foreclosure, this sort ofinfo is usually public record anyway, and get anidea of when you need to depart. Good luck to you.
- answered by ka52_1
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