Found out the house I'm renting today is entering foreclosure

[Avalon]

Been renting this house for a few years. Got a legal letter in the mail today stating that the bank that owned the loan on the house was entering the foreclosure process because apparently the home owner hasn't paid mortgage in about a year.

My owner lives in Venezuela. Coincidentally, Hugo Chavez died today...hmm...coincidence?!?

 

[BoomerD]

You may get fucked...I've known several people who got evicted when their rental was foreclosed...and NONE of them got their damage/security deposits refunded.

(state law may prevail and the foreclosing bank may be required to refund deposit)

 

[SSSnail]

Well, at least you'll get a few months of free rent. There are laws that would prevent the bank from kicking you out abruptly.

 

[Avalon]

I know a lawyer and a county sheriff, so I've been consulting with them about it, but I just wanted to make light of the situation to hopefully amuse a few of you

 

[DCal430]

Legally they won't be able to foreclose and evict you for at least 6 months, and most will probably take closer to 12 months, and even then you can fight it in court, and that it self could add on 6 to 12 more months.

 

[DCal430]

Well, at least you'll get a few months of free rent. There are laws that would prevent the bank from kicking you out abruptly.

It takes many months for a bank to foreclose, and after foreclosure most states require 2 months notice evict the renter.

 

[dawp]

Legally they won't be able to foreclose and evict you for at least 6 months, and most will probably take closer to 12 months, and even then you can fight it in court, and that it self could add on 6 to 12 more months.

that is very dependent on where you live, foreclosure laws vary state by state.

 

[T9D]

So the guy stopped paying the bank but just pocketed your rent money. Free and clear for him. Classy.

 

[Anonemous]

So do you stop paying rent or pay the bank the rent?

 

[boomhower]

I always thought they had to honor the lease.

 

[arkcom]

I always thought they had to honor the lease.

Why would they? It's not their lease.

Most leases the owner out with proper notice anyway.

 

[kami333]

Sucks but looks like you are getting advice if you know a lawyer and sheriff. I went through the same thing back in 2008; started getting junk mail about modifying my mortgage in 2007, notice of foreclosure in Aug 08, went to auction in Nov, got a 3 day eviction notice in Dec and finally left with cash-for-keys ($2000) in Jan 09.

Keep an eye out for any filings, postings, etc, we wouldn't have even known about the auction if I hadn't come home early and seen the notice posted (manager took down later before all the tenants saw it, I had taken photos so I printed them out for everyone). I also kept in touch with the person handling the property on the bank's side, helped when we got a water shutoff notice immediately after the auction (water was paid by ll). Be prepared to lose your deposit, although it's supposed to be transferred to the new owners it often just disappears from what I've read of other people's experiences, I worked it out with the old ll to use mine for that month's lease.

It's been a while since I've looked into it but Protecting Tenants at Foreclosure Act of 2009 should give you protection, unless the new owners are going to move in they have to honor your current lease or give you 90days notice to vacate.

 

[Uppsala9496]

What happens if you stop paying your rent?
Owner going to attempt to kick you out?

Personally I would start looking for a new place and not pay one more dime in rent. Fuck the owner for putting you in that shitty situation.

 

[Delita]

Why would they? It's not their lease.

Most leases the owner out with proper notice anyway.

Legally when you assume a property, through a sale or foreclosure, you assume all leases, etc. on the property. So yes they have to honor the lease until completion.

 

[Leymenaide]

Be pro-active contact the bank and try to work out a deal that is to your benefit. Good Luck.

 

[DCal430]

that is very dependent on where you live, foreclosure laws vary state by state.

True, but most states should have similar laws, also most banks are very slow right now at foreclosing as well, taking over a year to complete then process on average.

 

[DCal430]

Check with the county to see if a NOD has been recorded yet. Check every week to see when they record it.

 

[SunnyD]

Sounds like a good time to possibly talk to the bank and see if you can pick up the house on a massive short sale.

 

[self_storage]

Did you know before that that the owner hadn't been paying. Usually they send a half a dozen notices to you at the property address before they actually start the foreclosure process.

 

[Phokus]

I mean if you can live another year or so in the place rent free, why even care about the deposit, lol.

 

[Ketchup]

Sounds like a good time to possibly talk to the bank and see if you can pick up the house on a massive short sale.

This is what I was thinking when I started reading the thread. I wouldn't be too surprised if they give you a decent deal since the guy hasn't been paying for a year.

Then again, they may not, thinking they could take advantage of the fact that you wouldn't want to move out.

You never know. Good luck.

Personally, I would offer to buy and pressure them for a good deal, if necessary.

 

[Jimzz]

I mean if you can live another year or so in the place rent free, why even care about the deposit, lol.

Yep I would stop paying now. If the former owner ask why you stopped paying say you got a notice they were not the owner.

Stay until you get a legal notice to vacate, usually the sheriff brings it. Don't leave because the bank says so, there has to be a legal notice. Even then I bet you can get at least a year without rent.

 

[rsutoratosu]

This happened to my friend, house was foreclosed, etc.. the owner never came back to collect rent or anything, guy just disappear. They left some stuff.. basically the bank came and broke the lock to do inspections, etc or whatever. My friend being the cheap ass that he was, rented a uhaul and sold off the fridge, washer, dryer and whatever misc crap in the house when he was evicted. Dont know how legal that is but he never got in trouble or they never bother to look for him..

 

[Genx87]

You can stop paying rent. The old owner may still try to collect. You still have to legally send him a rent check until he doesnt have posession of the property. Then you can try to find out who gets the house at auction. Chances are it will be the bank that owns the note. See if you can continue the lease. If not, then I would not pay any rent and wait for an eviction notice. Those will typically take 12 months. 12 months of free rent is pretty nice in my book. Use that as a down payment on another house. Or try to buy the one you are living in lol.

 

[Train]

Why are you under the assumption the new owner would want you out? Chances are it will be bought cheap by someone looking to add a rental property. This is pretty common. A rental property that is already beig rented = instant cash flow.

Keep the house in good condition, make it atttractive to buyers. You could even end up with cheaper rent than you have now.

DON'T stop paying rent, that's just begging to get evicted. So you could stay there for another 6 months without being kicked out? Great, but you'd also be another scum of the earth pece of ghetto trash that is ruining this country.

Other option: buy it yourself. The banks look to offload forclosed properties, and who better to offload it to than the guy living there? Given a good forclosure deal, you could end up with a mortgage cheaper than your rent, with some equity already.