Condo I'm renting is getting foreclosed against

[Blieb]

http://www.fatwallet.com/forums/finance/773543/

This guy was in the same situation! I remember the thread ... hysterical ...

 

[Capt Caveman]

Originally posted by: amdforever2
I said get evicted or buy it

so?

Both of those options are stupid.

 

[Capt Caveman]

Originally posted by: cortdizzle

Originally posted by: Capt Caveman

Originally posted by: cortdizzle
bump

Why would you bump this, 15 minutes after your last post?

because, i was bored
and because i wanted to give it maximum exposure.
i know the OP and was just trying to get more people to view it in hopes someone with any inherent knowledge would give useful input.

besides, who cares if i bumped it or not

Who were you before you were banned?

 

[cortdizzle]

Originally posted by: Capt Caveman

Originally posted by: cortdizzle

Originally posted by: Capt Caveman

Originally posted by: cortdizzle
bump

Why would you bump this, 15 minutes after your last post?

because, i was bored
and because i wanted to give it maximum exposure.
i know the OP and was just trying to get more people to view it in hopes someone with any inherent knowledge would give useful input.

besides, who cares if i bumped it or not

Who were you before you were banned?

oh god, get over it already. i was never banned. i just joined the site for the first time. im basically a forum newb so why cant you be a little more courteous and actually post something that pertains to the topic. and it would rock if you would stop being a douchebag

 

[GiggleGirl]

i guess just wait to see what your property manager advises you to do. you dont need to take all this advice about not paying rent. dont screw yourself over.

 

[imported_Baloo]

Originally posted by: Injury

Originally posted by: AgaBoogaBoo
Can you buy it?

I'd check in to this option.


Alternatively, you could try just not paying rent at all in a sort of "I'm gonna get screwed so I might as well" deal. (kidding... sort of.)

Actually, that is good advice. He won't get the deposit back without going to court, and still would be unlikely to get anything. But he should not just keep the money, he shuld put it in escrow. That is perfectly legal in bankrupcy cases.

 

[amdforever2]

Owner of condo is bankrupt and owes OP.

OP is 100% affected by the bankruptcy filing of an entity that owes him money.

When a bankruptcy case is filed an automatic stay against collection efforts goes into effect. Trying to circumvent this stay and collect money outside the bankruptcy courts processes is ill advised.

 

[OCNewbie]

*bump* (made pretty with stars)

 

[alkemyst]

Originally posted by: OCNewbie
Just looking for legal advice, or general advice on what I should do.

Got a letter in the mail explaining to me that the owner of the condo I rent (I rent through a leasing agency) is in a "Chapter Seven Bankruptcy." And also states that "the mortgage company has obtained relief or soon will obtain relief from the automatic stay protection of Bankruptcy Act." It then says "You should be making plans to relocate from the above residence."

My lease doesn't end until October. I have a $650 refundable deposit on the condo.

I'm wondering what my rights/options are at this point. What can they do to make me leave under the circumstances? I have paid my rent on time every month up to this point. Can they evict me? How long is that process? Might I be entitled to my deposit sooner than October? Would I be able to somehow get any free rent or compensation out of this for having to move out prior to my signed lease agreement?

Hoping this will catch the eye of someone with more experience in this situation than I have. Any other suggestions on what action I should take would be appreciated.

Thanks

Depends on your state. Generally if the owner goes to foreclosure though you just get 30 days notice to move. Your deposits and the like become part of the bankruptcy.

You'd have to sue them privately and stand in line for payouts.

 

[alkemyst]

Originally posted by: JasonCoder
I have a friend who was in a similar situation once. The guy who collected the rent didn't come around because they foreclosed on him. My friend ended up not paying rent the last few months he was there.

I bet you get a few months free out of it. Just try not paying your rent on time the next time it's due. Seriously. If they're dicks about it just say whoa, chill, forgot about the date. I don't think it's a shitty thing to do either because it might be the only way you can get back your deposit.

They can still report this as a deliquency though.

 

[Zim Hosein]

Originally posted by: alkemyst

Originally posted by: JasonCoder
I have a friend who was in a similar situation once. The guy who collected the rent didn't come around because they foreclosed on him. My friend ended up not paying rent the last few months he was there.

I bet you get a few months free out of it. Just try not paying your rent on time the next time it's due. Seriously. If they're dicks about it just say whoa, chill, forgot about the date. I don't think it's a shitty thing to do either because it might be the only way you can get back your deposit.

They can still report this as a deliquency though.

This is true, no reason to F-up your credit report OCNewbie.

 

[Double Trouble]

IANAL, but it would seem that you should prepare to move somewhere immediately. Provided you pay your rent as specified in your agreement, this will not affect your credit. You're pretty much out the deposit though.....

 

[Sentrosi2121]

Is it a two apartment kind of place? If so, perhaps you can look into buying the property from the bank. Rent the other apartment for the amount of the mortgage and you live there for free. Not a bad plan. Take the money you'd already be paying into rent and put it into a savings account. Knowing that you'd have a tenant now you could use the money in that account to be used as an upkeep fund for your tenant. If something breaks at least you'll have money available to call the plumber. Keep putting into this fund and, perhaps in 4 or 5 years, you'll be able to buy your own place. Then rent out the other apartment to help subsidize your new house.

I'd consider it a win-win, unless it's in a crappy neighborhood and you don't look to be there for the next 5 years.

 

[OCNewbie]

This is a large apartment complex turned condo place I believe, or vice versa. It has 12 units per building, and many buildings, probably 30+. The condo I live in is owned by a man. As far as I know, he just owns this one unit. I write out my rent check to a leasing company that handles that side of the business for the owner.

 

[Sentrosi2121]

Well that shoots my idea down the proverbial toilet. :laugh:

 

[GiggleGirl]

well whatever happens, at least you dont have to live there too much longer............. my bed awaits you darling! haha

 

[ObiDon]

your security deposits and such should be safe. generally, laws require that deposits be kept in another bank account seperate from rent and other operating funds. deposits are not to be intermingled with regular funds because they are technically still not the owner's or property manager's money.

in the event of an owner bankruptcy, tenants should still have first dibs on deposit money -- not creditors

 

[alkemyst]

Originally posted by: ObiDon
your security deposits and such should be safe. generally, laws require that deposits be kept in another bank account seperate from rent and other operating funds. deposits are not to be intermingled with regular funds because they are technically still not the owner's or property manager's money.

in the event of an owner bankruptcy, tenants should still have first dibs on deposit money -- not creditors

Depends on how structured the landlord was. Most of these types of laws only apply to larger complexes.

Also regardless of what's right, more often than not the deposits are long gone in situations like this. You end up in line with everyone else looking for their money that was not supposed to be spent.

 

[GiggleGirl]

update*

OCN is trying to talk to the landlord to see if he can break lease a few months early and still get his money back. the property manager asked him to bring her all the paperwork and letters the owners lawyer had written to him telling him to find a new place to live and shes "thinking" or figuring it out.

not sure if it looks promising just yet but im hoping he can move out mid- August!

 

[JeffreyLebowski]

Originally posted by: JasonCoder
I have a friend who was in a similar situation once. The guy who collected the rent didn't come around because they foreclosed on him. My friend ended up not paying rent the last few months he was there.

I bet you get a few months free out of it. Just try not paying your rent on time the next time it's due. Seriously. If they're dicks about it just say whoa, chill, forgot about the date. I don't think it's a shitty thing to do either because it might be the only way you can get back your deposit.

I'm thinking along the same lines, stop paying rent. IF they say anything to you, show them the letter and state that you are not going to pay them money to live somewhere that you can be evicted from because they are not paying their bills. then and there ask for your deposit back, if they say no, then you say fuck off.
You need to move out as soon as possible.

 

[JeffreyLebowski]

Originally posted by: cortdizzle

Originally posted by: amdforever2
You can't sue them in small claims court because of the automatic stay. You can't sue the bankrupt company that has your deposit.

That deposit is part of the bankrupt companies assets and what you get if anything will be distributed by the court.

Stop paying rent. No reason not to. The owner of the property will become the bank and they will either evict you or you'll have to buy the property.

ummmmm...... you wont HAVE to buy the property... whos going to force you? thats nonsense... bottom line is once the foreclosure is complete, the OP will pretty much have to move out. i read somewhere that banks dont want to be landlords, which is definitely true, they arent going to want to deal with having a tenant. its more than likely, the landlord will try to get you out of the apartment before shit really hits the fan. -- oh and i think you misunderstood... its an actual person who owns the property who is bankrupt... not a company. and for the most part, many states require deposits to be put in an escrow account for cases like this or to be used for rental repairs....

youre best bet is to just be prepared for that to happen. and yea, you can sue for your deposit, because leasing contracts clearly state what the money is for and that deposits are returned for two reasons, the end of a met leasing term, or the end of a lease on the landlords accord....

has no one ever rented property before???

oh and if you just stop paying your rent, theres a real risk of that going on a credit report if the owner decides to take you for unpaid rent since the lease is still technically in action.

Of course we have never rented. We all bought our million dollar houses right out of high school. So we only have mortgage advise to give.

 

[AmpedSilence]

Originally posted by: JeffreyLebowski

Originally posted by: cortdizzle

Originally posted by: amdforever2
You can't sue them in small claims court because of the automatic stay. You can't sue the bankrupt company that has your deposit.

That deposit is part of the bankrupt companies assets and what you get if anything will be distributed by the court.

Stop paying rent. No reason not to. The owner of the property will become the bank and they will either evict you or you'll have to buy the property.

ummmmm...... you wont HAVE to buy the property... whos going to force you? thats nonsense... bottom line is once the foreclosure is complete, the OP will pretty much have to move out. i read somewhere that banks dont want to be landlords, which is definitely true, they arent going to want to deal with having a tenant. its more than likely, the landlord will try to get you out of the apartment before shit really hits the fan. -- oh and i think you misunderstood... its an actual person who owns the property who is bankrupt... not a company. and for the most part, many states require deposits to be put in an escrow account for cases like this or to be used for rental repairs....

youre best bet is to just be prepared for that to happen. and yea, you can sue for your deposit, because leasing contracts clearly state what the money is for and that deposits are returned for two reasons, the end of a met leasing term, or the end of a lease on the landlords accord....

has no one ever rented property before???

oh and if you just stop paying your rent, theres a real risk of that going on a credit report if the owner decides to take you for unpaid rent since the lease is still technically in action.

Of course we have never rented. We all bought our million dollar houses right out of high school. So we only have mortgage advise to give.

mortgage? what is this mortgage you speak of?!? I paid cash for my million dollar McMansion!

 

[GiggleGirl]

lol

 

[Gibson486]

Originally posted by: alkemyst

Originally posted by: ObiDon
your security deposits and such should be safe. generally, laws require that deposits be kept in another bank account seperate from rent and other operating funds. deposits are not to be intermingled with regular funds because they are technically still not the owner's or property manager's money.

in the event of an owner bankruptcy, tenants should still have first dibs on deposit money -- not creditors

Depends on how structured the landlord was. Most of these types of laws only apply to larger complexes.

Also regardless of what's right, more often than not the deposits are long gone in situations like this. You end up in line with everyone else looking for their money that was not supposed to be spent.

In MA, those laws apply to all landlords (you can sue for three times the amount of rent for just not giving notice of where your deposit is). You are right, though. If the guy declared bankruptcy. goodluck. Sue all you want, you will not be getting that money soon.