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Calling ATOT Airchair lawyers(And real ones)

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FDF12389

Diamond Member
We found out a while back that our landlord was being foreclosed on, the lender sent us assignments of rent and we have been paying them rent every month. We have since found a new place to move into on September 1st. Out lease is up, and the landlord has verbally told us (in the past) we can use last months rent as return of escrow. However the lender is demanding we pay rent or they will pursue a judgement.

I've researched this, and came across the following, I want to make sure I am not misinterpreting. Does the following allow us to trade rent for escrow even if the lender has not received a final judgement?

846.35(2)(a)2:
http://docs.legis.wisconsin.gov/statutes/statutes/846/35/2/a

(2) EXTENDED POSSESSION OF PREMISES; WITHHOLDING LAST
MONTH’S RENT. (a) Notwithstanding ch. 704, all of the following
apply to a tenant whose tenancy is terminated as a result of a foreclosure
judgment and sale with respect to the rental property:
1. Subject to subd. 3., the tenant may retain possession of the
tenant’s rental unit for up to 2 months after the end of the month
in which the sale of the property is confirmed.
2. The tenant may withhold rent in an amount equal to the
security deposit during the last period the tenant actually retains
possession of the rental unit, regardless of whether the tenant
retains possession after the sale of the property is confirmed, as
authorized under subd. 1.
3. The tenant’s right to retain possession of the rental unit
expires at the end of the month for which the tenant withholds rent,
as authorized under subd. 2.
(b) Subject to par. (a) 2., a tenant who retains possession of the
rental unit after the sale of the property is confirmed shall pay rent
for the period during which the tenant retains possession at the
same rate that applied immediately before the confirmation of the
sale of the property.


Also, as I understand it they are legally allowed to receive rent we owe the landlord. So if I had a written letter from the landlord stating we could trade last months rent as escrow, the bank would have no right to pursue a judgement, right?

Thank you in advance for your time!
 
Last edited:
FDF12389 said:
We found out a while back that our landlord was being foreclosed on, the lender sent us assignments of rent and we have been paying them rent every month. We have since found a new place to move into on September 1st. Out lease is up, and the landlord has verbally told us (in the past) we can use last months rent as return of escrow. However the lender is demanding we pay rent or they will pursue a judgement.

I've researched this, and came across the following, I want to make sure I am not misinterpreting. Does the following allow us to trade rent for escrow even if the lender has not received a final judgement?

846.35(2)(a)2:
http://docs.legis.wisconsin.gov/statutes/statutes/846/35/2/a

(2) EXTENDED POSSESSION OF PREMISES; WITHHOLDING LAST
MONTH’S RENT. (a) Notwithstanding ch. 704, all of the following
apply to a tenant whose tenancy is terminated as a result of a foreclosure
judgment and sale with respect to the rental property:
1. Subject to subd. 3., the tenant may retain possession of the
tenant’s rental unit for up to 2 months after the end of the month
in which the sale of the property is confirmed.
2. The tenant may withhold rent in an amount equal to the
security deposit during the last period the tenant actually retains
possession of the rental unit, regardless of whether the tenant
retains possession after the sale of the property is confirmed, as
authorized under subd. 1.
3. The tenant’s right to retain possession of the rental unit
expires at the end of the month for which the tenant withholds rent,
as authorized under subd. 2.
(b) Subject to par. (a) 2., a tenant who retains possession of the
rental unit after the sale of the property is confirmed shall pay rent
for the period during which the tenant retains possession at the
same rate that applied immediately before the confirmation of the
sale of the property.


Also, as I understand it they are legally allowed to receive rent we owe the landlord. So if I had a written letter from the landlord stating we could trade last months rent as escrow, the bank would have no right to pursue a judgement, right?

Thank you in advance for your time!
Click to expand...

IANAL, so take this with a block of salt...

AFAIK, if you have a written lease, it remains in effect, even in foreclosure...but if it's verbal between you and the landlord, it doesn't mean much.

This looks like a good time to consult a local lawyer who's up on real estate laws in your state.
 
Huh? You pretty much just rambled on there and said nothing about the conditions under which any of this is taking place.

Who is your lease with? Who are you paying rent to? Does this even cover you -- are you being evicted because the foreclosed property was sold?
 
DominionSeraph said:
Huh? You pretty much just rambled on there and said nothing about the conditions under which any of this is taking place.

Who is your lease with? Who are you paying rent to? Does this even cover you -- are you being evicted because the foreclosed property was sold?
Click to expand...

My lease is with the landlord, but it no longer has consequence(No lease).
I have been paying rent to the lender since receiving an assignments of rent notice.

No, I am not being evicted due to a sale as the result of foreclosure. Which is why I'm making sure this doesn't apply to me.
 
The section only applies to a lease being terminated on account of the foreclosure - i.e. a judgment of foreclosure is entered and the new owner tells you to pack your bags.

Does not sound like your situation at all.
 
FDF12389 said:
My lease is with the landlord, but it no longer has consequence(No lease).
I have been paying rent to the lender since receiving an assignments of rent notice.

No, I am not being evicted due to a sale as the result of foreclosure. Which is why I'm making sure this doesn't apply to me.
Click to expand...

Does the landlord still have your security deposit? If so, and based on what you've posted, it appears the issue is between the lender and the landlord.

Speak w/ a lawyer.

Did you ask the lender if they have your security deposit? If they do, they will not bother with following up on this if you don't pay, assuming you haven't completely trashed the place.
 
Jeeebus said:
The section only applies to a lease being terminated on account of the foreclosure - i.e. a judgment of foreclosure is entered and the new owner tells you to pack your bags.

Does not sound like your situation at all.
Click to expand...

That's what I was thinking. But what about the other part, having the landlord sign a statement allowing me to use last months rent as security deposit, since a foreclosure judgement hasn't been filed I assume that will put us in the clear.
 
Another non-lawyer
If the landlord has lost possession of the property already, ie foreclosure is complete, then if I read the second article of that law, you may be entitled hold the last months rent and not recieve a refund of the security deposit.
I would write to the current holder of the deed, to determine that if you pay the last month, will you recieve the security deposit back. If they donot respond in writing stipulating the amount to be returned to you, then obtain the services of a lawyer.

If foreclosure has not been completed, you may not be required to respond to the bank, at all, as your contract is with the prior landlord. Unless there is another part of the law that forces the transfer of the contract to the bank, unlikely. Or if your original contract included the bank as one of the landlords. The law seems to make stipulations in your protection should title transfer to the bank, preventing the bank from evicting you imediately.
 
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FDF12389 said:
That's what I was thinking. But what about the other part, having the landlord sign a statement allowing me to use last months rent as security deposit, since a foreclosure judgement hasn't been filed I assume that will put us in the clear.
Click to expand...

I doubt your landlord is currently in a position to make any modifications to your rental agreement at this point. May depend on the assignment of rents agreement he signed, may just be a matter of Wisconsin law, but I would be seriously surprised if a written letter from him would suffice now.

Think about it this way - what if he sent you a letter stating your rent is now $.50c/month, upon vacating the premises you are entitled to remove all piping in the walls, etc.
 
Jeeebus said:
I doubt your landlord is currently in a position to make any modifications to your rental agreement at this point. May depend on the assignment of rents agreement he signed, may just be a matter of Wisconsin law, but I would be seriously surprised if a written letter from him would suffice now.

Think about it this way - what if he sent you a letter stating your rent is now $.50c/month, upon vacating the premises you are entitled to remove all piping in the walls, etc.
Click to expand...

Yeah, but he's only putting in writing what they'd already verbal agreed upon. Sounds legit to me! 😀
 
The bank/lender is now your landlord, and they have NO intention of returning your last months rent OR deposit. You have already paid rent for August, AND September. Since you are moving out by Sept.1 you will ONLY be forfeiting your deposit. If it were me, I would have squatted till Oct. 1 to get all of what I paid for. Have you received a pay, or quit notice? The bank would have to prove a financial loss to ding your credit, and if the place is left in good shape, they cannot.
 
I'm sure your security deposit is long gone. Stop paying rent they are not going to go after you its not worth their time and they might loose in court.
 
rpanic said:
I'm sure your security deposit is long gone. Stop paying rent they are not going to go after you its not worth their time and they might loose in court.
Click to expand...

Maybe. State law plays a big part in this.

Around here, banks were paying people who were renting foreclosed houses to move out, either when their lease was up, or if the bank wanted to get the house ready for the market...IF they didn't damage the house when they moved.

Several people around here got between $1500 and $3000.
 
Your security deposit is gone, but that might not matter (to you). You're going to need a real, local lawyer, unfortunately.

The only way I would write a rent cheque without speaking to a lawyer is if the lender put in writing and signed that I would get my security deposit back from the lender.
 
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