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Need advice Please!!

Posted by on Aug. 25, 2009 at 4:01 PM
  • 8 Replies

I just found out that the home I am renting is being foreclosed on! This is the second home that I have rented in the last year that this happen to. My land lord called today to see if I will be paying rent. Can she do this? If I am paying her rent how am I supposed to save to move?  Any advice?

by on Aug. 25, 2009 at 4:01 PM
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Replies (1-8):
carrieasia
by on Aug. 25, 2009 at 4:03 PM

i don't know what you do in taht situation. but here is abump

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Aurorasmom
by on Aug. 25, 2009 at 4:04 PM

what are your rental terms with her? what state do you live in?

Loved4Sure
by on Aug. 25, 2009 at 4:10 PM

what state are you in?

technically, in some states, if the home you rent is in foreclosure you do not have to pay rent and you should absolutely look for another home immediately!




            

JasonsMom2007
by Platinum Member on Aug. 25, 2009 at 4:11 PM

I would check into the landlord/tenant rights in your state for this answer!

 














carrieasia
by on Aug. 25, 2009 at 4:13 PM

i found this, don't know how accurate it really is, maybe go to the court house and investigate?

 http://www.foreclosurefish.com/blog/index.php?cat=22

Can a Landlord in Foreclosure Sue if You Stop Paying Rent?

August 13, 2009, 12:13 pm

 

When a home goes into foreclosure while there is an active lease agreement, the lease must be honored by both the homeowners and the tenants. This can be true even after the sheriff sale of the house for a minimum of ninety days during the confirmation process of the auction. This is a new law that came into effect this year, shortly after President Obama took office.

In some cases, the lender will get the home back at the public auction and the lease will go on as usual; the former renters will just be making payments to the bank that buys the house at the sale, rather than the former homeowner. Another option is to make an agreement with the landlord to end the lease and get a credit for the security deposit. This can be applied to the final month of rent if the landlord no longer has the cash to refund the security deposit to end the lease.

Unless the tenants get a written agreement with their landlord to end the lease, they will still be responsible for making the monthly payments, regardless of what legal problems the owner is facing. This definitely includes the case of foreclosure -- renters will need to keep paying until the owner's interest in the property is transferred through the auction.

The best advice for renters in this situation may be to make sure they keep updated on what is happening with the foreclosure process. They can do this by viewing the public record at the county courthouse. In the event the home is sold at a sheriff sale, the tenants should immediately contact the new owner and try to find out what their options are.

Many people will recommend attempting to purchase the home and take over payments. This may not be the best option, though, and will only be appropriate in a limited number of cases. In other situations, this is the worst advice anyone could give, especially without knowing anything about the condition of the property or the tenants' financial circumstances.

If the renters would really like to break the lease immediately and move on to a more stable situation, their best option is to work out a deal with the landlord. Most landlords are not familiar with the foreclosure process or any of the new laws that affect renters in the event of a foreclosure. This can work to the advantage of the tenants in negotiating a solution to avoid being evicted after a sheriff sale.

Tenants can simply explain to the landlord that they need to break the lease because they are now aware that they will not be legally capable of living up to their part of the agreement as required by the lease. No renter wants to live week to week, not knowing when the sheriff is going to show up and evict them, giving them twenty minutes to remove their belongings. Some courts will also side with the renter, in this type of case, but it is probably not worth hiring an attorney and sue the landlord to get a small deposit back.

A final issue for renters to consider is that many people are able to save their home from foreclosure. Companies, foreclosure specialists, banks, and mortgage servicers help people find solutions to allow them to keep their homes every week, by using a loan modification, refinance, or other workout plan. It is entirely possible that the landlord will be able to keep the home and the foreclosure will not affect the lease whatsoever -- and in that situation, the worst action for tenants to take would be voluntarily not paying the lease.

 

Should You Keep Paying Rent if Your Landlord is in Foreclosure?

August 13, 2008, 3:05 pm

 

Finding out that you are renting a house that is facing foreclosure can be deeply worrisome. And the worst part is that there are so many questions that you may never receive a response to from your landlord and have to begin researching on your own.

How far along is the process? Has the house already been sold at sheriff sale? Who is the current owner of the property? Which bank is the foreclosing lender? Can you get more time to move out? Or has the landlord been working on a solution?

But the most common question that tenants seem to have when they discover their apartment or rental house is in foreclosure is if they still have to or not. Of course, this is a serious question, but it is more important to know who should be paid, rather than if a payment should me made at all.

The short answer is that you are still required to pay rent since you are still living in the property and using the space you are leasing from the current owners. You have a contractual obligation to pay rent in exchange for the living space, and foreclosure does not change that until ownership is transferred through a public property auction.

If you are concerned about the foreclosure, then you have two options, both of which you should work on. First you can either move out as soon as possible to avoid potentially being evicted later on, or, second, you should talk to the landlord about what he is doing about the situation and any possible .

Some landlords are able to stop the before the house is auctioned off, and then you would just be behind on rent if you stopped paying now and they saved the home. You would probably end up losing your deposit in that case, since nonpayment is one reason you had to put down the deposit in the first place, and you may open yourself up to lawsuits for back rent payments.

You can also move out of the house claiming constructive eviction, which means the conditions made it so unlivable that there was no other choice than to break the lease and leave. If the owner does not give you your deposit back, you can try to sue for it later on. You would just have to convince the small claims court that a pending foreclosure was a reason to move out prematurely.

A final aspect of the process to be aware of is , the bank may become the owner of the property and rent payments will need to be made either to a trustee or the lender's attorneys. Most often, banks will attempt to evict anyone still living in the house after the auction, but if there is a chance to continue renting, it may be best to consider the circumstances.

But you do not just want to stop paying rent unless you have the correct information about the foreclosure proceedings, what the owner is doing about it, or a game plan for moving out and claiming constructive eviction. Otherwise, refusing to pay rent because of a pending foreclosure may have negative unintended consequences, depending on how the rest of the plays out.

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Mallydew
by on Aug. 25, 2009 at 4:54 PM


Quoting Loved4Sure:

what state are you in?

technically, in some states, if the home you rent is in foreclosure you do not have to pay rent and you should absolutely look for another home immediately!

I'm in Florida. I tried to find those laws, but I can't seem to find it any where on the internet and I am not too sure where else to look. It's just so overwhelming! I heard that I may not have to but I am not too sure about Florida....

carrieasia
by on Aug. 26, 2009 at 10:02 AM

bump

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Christian-Mom79
by on Aug. 26, 2009 at 10:05 AM

I would contact a couple of attorneys and ask them! I'll be praying for you!

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