Landlord is being forclosed...

[FDF12389]

Cliffs:

Got new place in November
Signed 10 month lease
Got assignment of rent letter four days ago from his bank
Called landlord, he's broke, wants to move back into the place and trade me my last months rent as escrow.

Question:

Our lease specifies that we can request use of last months rent as escrow as long as the landlord inspects the property. But now that the bank has assigned rent is the landlord legally allowed to trade rent for the deposit?

I looked up our address and he owes 25k in property taxes, so if I can't trade him I'll go ahead and assume I'll never see that money again.

 

[sunzt]

Cliffs:

Got new place in November
Signed 10 month lease
Got assignment of rent letter four days ago from his bank
Called landlord, he's broke, wants to move back into the place and trade me my last months rent as escrow.

Question:

Our lease specifies that we can request use of last months rent as escrow as long as the landlord inspects the property. But now that the bank has assigned rent is the landlord legally allowed to trade rent for the deposit?

I looked up our address and he owes 25k in property taxes, so if I can't trade him I'll go ahead and assume I'll never see that money again.

I was in a similar situation. I was 3/4 through a lease and some random dude was trying to drill my front door deadbolt open at like 8 AM on a saturday. Woke me up and told me that this house was foreclosed and left. I was still trying to waking up and was like wtf just happened. I didn't realize it, but those people will replace the locks of a newly foreclosed place and try to rent them out. My landlord foreclosed on me and failed to tell me, but said I can go month-to-month until the bank actually kicks me out ~3-5 months later i think.

Basically your landlord no longer owns the place and anything on that lease you signed is in a grey area now i think. You're probably forked...

 

[drebo]

Depending on the state in which you live, it may take some time for the bank to evict you. During that time, you do not need to pay rent to the previous homeowner.

If the bank has assigned rent, you need to pay them rent. The previous homeowner no longer owns the house and has no right to move in or ask that you move out for any reason. If your rental lease passed from him to the bank, the bank is now responsible for paying your deposit back to you at the conclusion of your lease.

The house belongs to the bank now.

 

[D1gger]

Depending on the state in which you live, it may take some time for the bank to evict you. During that time, you do not need to pay rent to the previous homeowner.

If the bank has assigned rent, you need to pay them rent. The previous homeowner no longer owns the house and has no right to move in or ask that you move out for any reason. If your rental lease passed from him to the bank, the bank is now responsible for paying your deposit back to you at the conclusion of your lease.

The house belongs to the bank now.

Bingo. The OP needs to talk only to the bank, as they now have assumed ownership of the home.

 

[BoomerD]

Around here, many banks are paying some decent "bonuses" to tenants if they move out without doing damage to the property...

since your profile shows Wisconsin...here's some info for you:

http://files.daneforeclosurehelp.org/new_rights_for_tenants.html

http://www.wra.org/WREM/May09/TenantsRightsInForeclosure/

 

[Bignate603]

Around here, many banks are paying some decent "bonuses" to tenants if they move out without doing damage to the property...

since your profile shows Wisconsin...here's some info for you:

http://files.daneforeclosurehelp.org/new_rights_for_tenants.html

http://www.wra.org/WREM/May09/TenantsRightsInForeclosure/

That first link said something interesting.

The tenant may withhold rent for the last month in the unit in an amount equal to the tenant’s security deposit.

I'd talk to somebody more familiar with the laws though in your area. I WOULDN'T pay the landlord the rent if the bank has assumed the right to receive it. That rent is the bank's now.